There is nothing more exciting than digging into the earth and striking oil. It is a uniquely American image, one we still like to keep in our minds as we go to work each day. To have a successful drilling program you must begin with the right land. U.S. Energy’s Land Department diligently maintains all lease inventories and joint venture agreements. Our experts maintain and regularly update inventories of the leases involved in each project. An accurate lease inventory is a crucial component of any successful energy development project. U.S. Energy strives to avoid costly legal mistakes by regularly employing legal counsel for contract drafting and review. Furthermore, drill site titles are painstakingly reviewed before any expenditures are made. This very important step prevents disputes that can arise when marketable title is not secured prior to drilling.

At U.S. Energy, we believe that it is good business to have everyone on the same page. In our review of joint venture arrangements, we try to ensure that our interests in a project are matched by those of the operators. We will not enter into an agreement in which the operator has little or no working interest capital at stake. U.S. Energy also structures deals with investors with the same interest alignment goal in mind.

A critical step in the agreement review process is a careful appraisal of the integrity and financial solvency of the operator. U.S. Energy performs credit checks and thorough reference checks of all operators prior to launching a new project. During the life of the project, operators are also graded in various categories which provide us with an accurate barometer of how they are performing. This information is very helpful when we are deciding whether we should renew contracts with our current operators or seek out deals with new operators.

After U.S. Energy has secured the land where we want to drill, our next goal is to make sure we preserve the surrounding ecosystem to the best of our ability. “Oil and water don’t mix” is the common view regarding an oil and gas company’s relationship to the environment, but at U.S. Energy we like to remind everyone that oil is, and always has been, a part of the planet earth. That’s why it is known as a natural resource, just like water.