Remarks by Charles J. Lipton

Abstract

Our first question is one of terminology. We have used a great many of these terms very loosely. We still talk in terms of “concession agreements.” The meaning of that term has shifted. It now stands for a much broader concept than it did before. It is now an all-embracing term seemingly covering any agreement between a government and an operator for the exploration and production of mineral resources. I do not think it is an accurate enough term any longer. We lawyers have not been inventive; we have distinctions with differences within the broad term “concession.” We now have operating or production agreement, development agreement, profit-sharing agreement, contract of work, management agreement, and service agreement. These terms mean different things; they bring different results. They represent different relationships between the government and the operator.