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The Energy & Natural Resources Law Practice is a multifaceted field that governs the entire value chain of natural resources and energy, from initial exploration to final consumption. This practice addresses the legal frameworks for both non-renewable resources, like oil, gas, and minerals, and renewable resources, such as solar, wind, and hydropower. Practitioners are essential in securing the necessary governmental permits, licenses, and concessions for exploration and extraction. They also architect the complex commercial contracts that underpin project financing, construction, and operations. A critical component of this practice is ensuring strict adherence to stringent environmental regulations, balancing economic development with ecological stewardship throughout a project’s lifecycle.
Energy and natural resources law is the body of statutes and regulations that governs the allocation, ownership, and use of natural resources, as well as the production and distribution of energy. This legal field encompasses the rules for mining, oil and gas exploration, forestry, and water rights. It also includes the regulatory framework for both traditional fossil fuel power generation and renewable energy projects, blending principles from property, contract, administrative, and environmental law.
The legal difference is that ownership of a single parcel of land can be split into two separate estates. Surface rights grant the owner the right to use and occupy the surface of the land, including building structures or farming. Mineral rights grant the owner the right to the valuable resources located beneath the surface, such as oil, gas, and minerals, and the right to explore for and extract them. In many jurisdictions, these two sets of rights can be owned, sold, or leased independently of one another.
A concession or license is a legal instrument, typically a contract or permit, granted by a government to a private company. This agreement provides the company with the exclusive right to explore for, develop, and extract specific natural resources within a defined geographic area for a set period. In return for this right, the company is usually obligated to pay fees, royalties, and taxes to the government and to adhere to strict operational and environmental standards stipulated in the agreement.
In the context of natural resources, royalties are payments made by the company extracting the resource to the owner of that resource, which is often a government or a private landowner. This payment serves as compensation for the right to exploit the resource. It is typically calculated as a percentage of the revenue generated from the sale of the extracted materials, such as oil, gas, or minerals. Royalties are a key component of the financial terms in most resource extraction agreements.
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