Special Durable Power of Attorney Template
(Oil, Gas and Minerals)

Summary

This template is a special durable power of attorney for oil, gas, and mineral transactions, where a principal endows an agent or attorney-in-fact with certain powers related to a particular transaction. It provides the agent with full and binding rights as if the agent were the principal itself. This template contains practical guidance, drafting notes, and an alternate clause. It is presumed that a party to a transaction has the power to bind itself. Each party will usually make a representation and warranty to that end in the definitive transaction documents, promising to all other parties that it has such power and authority. There are times when a principal party is unavailable to personally enter into a transaction but still desires to be a party to the same. In such a case, a principal will utilize a power of attorney template to designate an agent as the principal's attorney-in-fact, with power to bind the principal in all matters related to the transaction. Utilizing this template, the powers that would vest in the agent would be related to oil, gas, and mineral transactions, including the right to enter into a lease, accept lease proceeds, and pay any related taxes on behalf of the principal. Because this is a durable power of attorney, it will not be affected by the principal's subsequent disability or incapacity. The agreement should set forth, among other terms, the duration of the appointment, the transaction(s) and/or property or properties to which the appointment is applicable, the specific powers granted to the attorney-in-fact, and any restrictions or limitations to such powers. For more information on powers of attorney, as well as the authority granted thereby, see Powers of Attorney. For more information on similar or jurisdiction-specific agreements, see Power of Attorney Side Letter Clause (Private Equity Fund) and Durable Power of Attorney Clause (General Reporting/Accounting) (MI).