When oil and Gas Company wants to use the oil and gas field land, they have to obtain Gas title but only after an in-depth examination of the property. Leasing of oil and gas field for exploration and developing purpose is one of the most difficult transactions to be undertaken by the landowner. This transaction is also most important for both the parties. As the gas title is a legal term, it requires certain documents that are to be completed by both buyer and seller.
List of documents
With the continually evolving minerals industry, new litigations are coming into force. As per the litigations, some documents are required to present by both sides. Important ones are mentioned below
Documents to be provided by the buyer
When the process of obtaining gas title begins, the buyer needs to present the following documents-
- Company profile – Buyer must present the entire profile of the company, including important details such as past projects, the royalty paid- method and time, delay remuneration if any.
- The name of signatory– the person who will act on behalf of the company, i.e., company signatory, should be given along with a number and copy of his passport.
- Major documents- Some major documents such as the Company‘s registration certificate, Director’s name along with the residential address and contact details, names of other shareholders of the company company’s import license, and contact details.
- Name of the bank- Bank to use for transaction purposes along with other significant details should be mentioned.
- Similar business- Details of similar projects incurred and, if not, whether the company has the required qualifications.
- Written statements-Acceptance and agreement of lessor’s procedures by lessee must be given in writing. If this is the first project, then a brief proposal of how they are planning to proceed must be stated.
Transparency and credibility must be proven by the lessee through all the above documents.
Documents to be provided by seller
As transparency is being asked from the buyer for trade purposes, the buyer also expects the same transparency level from the seller, which he had to prove through documents and in writing. Certain essential documents are as under
- Proof of product- evidence that the product being traded is real should be given by way of a set of statements.
- Partial proof of product(POOP)-It includes the following documents-
SGS inspection report or equivalent
Dip test analysis report
Certificate of origin
Tank storage receipt
- Full proof of product- This is sent by secured mail to buyer/ buyer’s bank and consists of following documents-
Copy of export license (if applicable)
Copy of statement of availability of the product
Copy of the refinery commitment to produce the product
Copy of pipeline corporation contract to transport the product
- Refinery certificate of product
- Copy of port storage agreement (TSR-if applicable)
- Dip Test Authorization letter(DTA)
Order to use the product clarity, valid statements, and legally valid documents name of some are mentioned above should be represented by both the buyer and the seller for scoring trade transactions.
