Production Sharing Agreement


#1

Hello All,

I know this topic has been covered somewhat loosely in past discussions but I have a quick one.

I’ve read in legal blogs (Production Sharing Agreements — Oil and Gas Lawyer Blog — February 20, 2018) that PSA’s are sent out as a general courtesy to landowners because “the RRC will issue permits for allocation wells without requiring the operator to have any production sharing agreements.”

I just received one so my questions is - is it better to sign or not and what happens if I just don’t sign it and do nothing?

Thanks for the insight,

B