Texas Oil and Gas Attorney

Litigation over Gas/Oil Royalties

When a lease is drawn up for well operators to drill on privately owned land, there is nearly always an arrangement for payment of royalties to the land owner for materials produced on their land. With these kinds of leases, the drilling company is the lessee and will have to pay royalties equal to a percentage of the value of the oil or gas that has been removed from the property. These royalties are only paid only if and when there are materials produced. There are also common royalties called “shut-in royalties” that are paid to the lessor if to maintain the lease, even if the lessee isn’t drilling at certain times. This ensures the land owner will receive some compensation for the use of their land even if the drilling company has suspended drilling operations for a period of time during the lease. It is common for legal disputes over royalties and payments to arise and all too often, the landowner is who loses out because they have inadequate representation to take on large drilling companies.

If you are in a lease with a drilling company as a surface owner, or the co-owner of mineral interests and you are being treated unfairly, it is important to speak with a Texas Gas and Oil attorney right away so your rights and royalties can be fully protected. If the drilling company you have contracted with is refusing to pay, is paying late, or is only paying a portion of what you are entitled then you are able to take legal measures to help resolve any disputes and get your proper payments.

Working with an experienced attorney who can research your claims, by going over the contracts such as the Surface Use Agreement, and Drill Operating Agreement, which are the contracts that entitle a drilling company to operate on your land, to make sure you are getting royalties agreed upon at the signing is the best course of action. Many times, once a lawyer has gone over the contracts and can show the drilling company what they have found resolutions outside of court can take place. But having a Texas oil and Gas Lawyer by your side means that if legal actions are required, they’ll have all the information and experience needed to go through the entire courtroom process if necessary.

Don’t be counted among the land owners who have been mistreated and frustrated with unfair payment practices. You have the right to charge and receive payments that you are legally entitled. One of our attorneys at Carabin Shaw will meet with you any time to discuss your situation.

IF YOU ARE INVOLVED IN AN OIL OR GAS ROYALTY DISPUTE OR ANY TYPE OF BUSINESS LITIGATION, CONTACT THE TEAM OF CARABIN SHAW AT 1.800.862.1260 DAY OR NIGHT, 7 DAYS A WEEK FOR YOUR FREE CONSULTATION.

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