How Far Does the Covenant Run? Covenants that Run with the Land in Oil and Gas Transactions
37 Pages Posted: 31 Jul 2008
Date Written: July 30, 2008
This chapter reviews, in the context of general real property law in the United States, the definition and historical development of covenants running with the land, and then shows how these are applied in oil and gas transactions.
The first section of this chapter defines and distinguishes covenants running with the land and describes their legal history. The next section analyzes the incidents of covenants running with the land, with special emphasis on the rules governing assignability of covenant burdens and benefits. The following section discusses how the running of covenants is affected by whether the transfer of the interest is characterized as an assignment or a sublease. Then, how the rules for running of covenants generally are applied in oil and gas transactions is shown, followed by a summary and conclusions.
Keywords: Covenants running with the land, real covenants, covenants at law, horizontal privity, vertical privity, intent, "touches and concerns" the land, lease, leasehold interest, assignment, sublease, royalties, oil and gas law, real property law, mineral rights, mining law, energy law, environmental pol
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