Eagle Ford Shale Litigation in Laredo, Texas - Protecting Your Mineral Rights

Laredo lies in the Eagle Ford Shale formation, making this land valuable for Texas’s oil and gas industry. Those owning property around Laredo may find it profitable, but landowners are also vulnerable to unscrupulous business dealings that impact their income. If you own mineral rights in Laredo, you may need a legal professional to protect your rights and assets.

Our Laredo lawyers at Carabin Shaw have extensive experience with Eagle Ford Shale litigation, protecting mineral rights and ensuring landowners receive their royalties. If you are involved in a dispute regarding your Eagle Ford Shale land, our professionals are available 24/7 for free consultations in English or Spanish. Contact us toll-free at 800-862-1260.

Oil-rich land in Texas comprises two different estates. The surface estate encompasses the visible land, including structures and vegetation. The mineral estate includes the resources beneath the land’s surface, such as oil and gas.

The same person may own the surface and mineral estates. However, the two estates may also be "severed," allowing for different owners. Ownership of each estate is often passed down generations, making it difficult to determine who owns the estate and is eligible for royalty payments without an experienced attorney to navigate the process.

If you own mineral rights in Texas, you should have a deed documenting your ownership. You can also draft a lease with an oil and gas company, allowing them to explore, extract, and produce resources without giving up mineral rights.

In Texas, mineral estate owners have four fundamental rights:

• Execute a lease with an oil and gas company
• Receive bonus payments upon execution of the lease
• Authorize use of the surface for oil and gas production
• Receive royalty payments on mineral production

Mineral owners can also sell a portion of their interests to others, allowing family members or third parties to receive a portion of the royalties. Fractional interests may create challenges in determining how much each owner should receive.

Texas landowners may think the lease they sign with an oil and gas company protects their surface and mineral interests. However, issues can arise involving large sums of money and the need for a lawyer:

Surface landowners may use the land for farming or ranching. If the oil and gas company damages the land, the landowner may take action to protect their surface interests. A mineral owner has the implied right to use the surface for drilling and extraction. However, if property damage violates the lease, the surface landowner may have cause to seek compensation for damage to the property.

Horizontal drilling, fracking, or hydraulic fracturing is frequently used in oil-rich areas like the Eagle Ford Shale to increase oil and gas production. The process is efficient but uses more of another valuable Texas resource—water. Landowners may discover that the reduced water supply creates usage problems and conflicts between surface and mineral owners and oil and gas companies.

The most common issue for mineral rights owners is the royalty payments they expect from the oil and gas company. Most leases include a royalty clause that sets a fixed percentage of the oil and gas quantities to pay to the mineral estate owner. No matter how clear the lease terms might be, conflicts can arise like:

• Calculation methods resulting in a royalty underpayment
• Different interpretations of the lease terms
• Unauthorized drilling in an area not designated for oil extraction
• Mineral ownership, mainly if there are multiple owners or one owner dies

Mineral rights owners must rely on the oil and gas company to truthfully report sales price, production volume, and deductions. Unfortunately, not all companies deal honestly with landowners.

If you suspect your mineral rights have been violated, contact Carabin Shaw. We offer our services on a contingency-fee-basis when appropriate and charge reasonable legal fees in other cases. Check our client reviews to see what other clients say about our services, then contact us at 800-862-1260.

For more information:

• RRC Tx
• Agrilife
• Texas Statutes 92
• IPAA