Oil & Gas Contracts in Midland TX - Contract Disputes and How to Protect Your Interests

Midland is one of the top oil-producing counties in Texas, so disputes over oil and gas leases and contracts are common. Oil companies and landowners often share similar financial goals, but enforcing financial agreements and land use rights can cause disagreements. Hiring a local lawyer is the best way to protect your interests and seek compensation for damages.

At Carabin Shaw, our team of experienced attorneys has decades of experience helping clients maximize their compensation in oil and gas disputes. We aim to help you recover from the harm a gas company does to you and your property. To facilitate justice, we offer our services on a contingency-fee-basis, so you don’t have to pay us until we win your case. Read our client reviews to find out more about our legal services, or call 800-862-1260 to schedule your free case review.

The first thing your Midland oil and gas attorney will consider in a gas operations dispute is the mineral rights to your land. Two sets of rights are included in any land ownership: the surface estate and the mineral estate. These estates are frequently owned by different entities in Texas due to the state's long history of oil production.

As the name suggests, the surface estate is the right to use the surface of your land. Surface use includes:

• Constructing buildings
• Farming
• Recreational activities
• Groundwater

Mineral estate holders have the right to extract minerals, like oil, from the ground. This gives them the right to use the surface for oil extraction, which is where many oil and gas contract disputes in Texas begin. The rights of the mineral estate holder are dominant, meaning they supersede the surface owner's rights.

In addition to conflicts between surface owners and mineral owners, Midland TX oil and gas disputes may arise between neighbors to a drilling site because of the Railroad Commission of Texas’s authority to compel the pooling of interests. The government did not create land tracts for oil reservoirs, and large reservoirs may rest beneath several tracts. Therefore, drilling on one surface estate may affect the interests of the mineral rights holder on another piece of land.

To reduce the harm done to the land and adjacent mineral rights holders, Texas created the Mineral Interest Pooling Act. However, forced pooling doesn’t always sit well with mineral rights holders who are not ready to drill or do not favor the terms of the contract. Additionally, the landowner may dispute unnecessary surface use. Hiring a lawyer is the best way to negotiate better terms and regain some control of your rights.

Many oil and gas contract disputes in Midland, Texas stem from the destruction of the surface, an act the government allows, as it is necessary for oil production. The agreement between the estate holders should stipulate compensation for the surface alterations. Midland Development Services enforces regulations on local oil and gas operations by reviewing applications, inspecting, and permitting drilling operations. A surface owner must hire an attorney to resolve surface use disputes.

Another common contractual dispute is royalty payments, which the oil production company pays to the mineral rights holder and, in some situations, the surface rights holder. Many oil companies and mineral rights holders are willing to include surface rights holders in negotiations as an act of goodwill, keeping peace between the parties. A surface owner must enter these negotiations early before the oil company completes the contract, and having a skilled lawyer by your side can enhance your outcomes.

Both mineral estate owners and surface estate owners may have disputes regarding oil and gas contracts, as each party has competing interests that don’t always align. The Midland lawyers at Carabin Shaw understand the laws regarding oil and gas contracts in Texas, and we can help you protect your rights in a dispute. Call our toll-free number at 800-862-1260 to schedule a free case review. Someone is available to speak with you 24/7, and we have English- AND Spanish-speaking staff available.

For more information:

• RRC
• Texas Statutes 102
• Midland TX Info