ThoughtTrace, a tech company that uses AI for quickly assessing and compiling critical information in legal documents, is working with P2 Tobin on a Shale Lease Management system that will give upstream professionals in corporate development, land, GIS and geoscience instant access to expanded lease attributes, obligations, provisions and clauses. Artificial intelligence can now be used for oilfield leases.
Starting in multiple Permian Basin counties spread out across portions of Texas and New Mexico, P2 is making its Lease Obligation Intelligence system available to upstream entities. According to ThoughtTrace, in the oil and gas industry, land and mineral rights often change ownership as companies acquire and divest properties for exploration and development of minerals. As such, the contracts and leases containing the data which companies rely on to make strategic decisions is typically unstructured, exists in large volume, and often needs quick analysis.
The ThoughtTrace AI system, “reads words, sentences, and paragraphs down to the thought or intent level – comprehending the author’s original idea while providing a competence level ranking for ease of human analysis where needed,” the company explains in a white paper produced to show the return of investment for AI-powered land management systems.
The AI-powered system allows users to select an area of interest and at the click of a mouse obtain a massive amount of data that could include:
- surface Pugh clauses (a clause that limits the rights of the lessee to particular depths or areas)
- depth Pugh clauses (a clause that limits the rights of the lessee to certain depths and zones below surface)
- notice required assignments (relates to the transfer of leasing rights)
- consent required assignments (allows one party to assign a contract to another party)
- offset obligations (relates to well spacing distances from certain locations)
- continuous development (denotes activity levels currently taking place)
- continuous operations (refers to operations that are established)
- shut-ins (relates to well production activity)
Future releases of the system will focus on other basins, according to P2.