There are many facets of oil and gas law. From ownership rights, to leasing and extraction, oil and gas law can cover a wide variety of topics. The oil and gas industry in Texas is especially complex, being that it is such a large part of the economy. Ownership of oil and gas rights in the U.S. belong to the individual that owns the specific parcel of land. These rights extend vertically downward from the property line. The land owner can separate the oil and gas rights from the surface ownership and may buy, sell, or lease them out as they choose. If the rights to the minerals are leased out, as is often the case, the lessee will most likely have a right of reasonable access to the land, and to explore, develop, and transport the minerals. Payment for lessors usually comes in one of three forms: bonus, rental, or royalty. A bonus can be an up-front payment made at the time the lease is initiated. A rental payment will many times be an annual payment that is made to the lessee until the property begins producing oil or gas. Finally, a royalty will be a portion of the proceeds that come from the production on the leased property. All of these aspects have specific laws that govern each and will make the assistance of a Houston oil and gas attorney all the more important.
Who does Oil and Gas Law affect?
Oil and gas law can affect anyone that owns property that could potentially have minerals below the surface. Many times these individuals will be approached by oil companies wanting to purchase the rights to their land and it is important for them to understand their legal rights. Along those same lines, oil companies have certain rights in the leasing of mineral rights that will need to be protected. Finally, land owners in the surrounding area from leased properties my need representation as a result of the way oil and gas flow underground and will undoubtedly cross property lines.
Why is a Houston Oil and Gas attorney important?
In the state of Texas, oil and gas production is one of the primary sources of revenue for the state economy. The laws that regulate oil and gas are extremely complex, and one could easily get lost without the help of a Houston oil and gas attorney. Being that Texas is one of only two states that require specific bar exam testing for oil and gas law, you will definitely want a Texas oil and gas attorney representing you in your mineral rights business dealings. To contact a Houston oil and gas attorney fill out this contact form.