Simple English definitions for legal terms
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A footage drilling contract is an agreement between a drilling contractor and the owner of mineral rights. The contract outlines the responsibilities of each party, with the owner retaining more control over the contractor resulting in more liability for damages caused by drilling. A daywork drilling contract is similar, but the lease operator has more control over the contractor and therefore more liability. A turnkey drilling contract is when the drilling contractor promises to perform specific functions for an agreed price, with the lease operator assuming little to no liability for damages caused by drilling.
A footage drilling contract is an agreement between a drilling contractor and the owner or lessor of mineral rights. The contract outlines the rights and responsibilities of both parties. The drilling contractor, who owns drilling rigs and equipment, is paid a set amount per foot drilled to reach a specified formation or depth. The contractor has broad control over how to do the work, and the risk of unexpected delays and most liabilities is on the contractor rather than the lease operator.
These examples illustrate the different types of drilling contracts and the varying levels of control and liability for the parties involved. The footage drilling contract places most of the risk on the contractor, while the daywork drilling contract places more liability on the lease operator. The turnkey drilling contract minimizes the lease operator's liability by giving the drilling contractor more control over the work.