Protocol for Appraisal of Petroleum Producing Properties on Native American Tribal Lands

Petroleum is currently produced on Native American Tribal Lands and has been produced on some of these lands for approximately 100 years. As these properties are abandoned at a production level that is considered the economic limit by the operator, Native American Tribes are considering this an opportunity to assume operator status to keep the properties producing. In addition to operating properties as they are abandoned, Native American Tribes also are assuming liabilities of the former operator(s) and ownership of equipment left upon abandonment. Often, operators are assumed by Native American Tribes without consideration of the liabilities left by the former operators. The purpose of this report is to provide protocols for the appraisal of petroleum producing properties and analysis of the petroleum resource to be produced after assuming operations. The appraisal protocols provide a spreadsheet for analysis of the producing property and a checklist of items to bring along before entering the property for onsite appraisal of the property. The report will provide examples of some environmental flags that may indicate potential liabilities remaining on the property left unaddressed by previous operators. It provides a starting point for appraisal and analysis of a property with a basis to make the decision to assume operations or to pursue remediation and/or closure of the liabilities of previous operators