Oil and gas law governs natural resource exploration, extraction, and production, playing a crucial role in Texas and other energy-producing states whether dealing with lease agreements, mineral rights, or surface use disputes, landowners and energy companies must navigate complex legal and regulatory frameworks. Properly structured agreements help protect financial interests, ensure compliance with state and federal laws, and prevent conflicts over land use and royalties.
With evolving environmental regulations and shifting market conditions, understanding the legal aspects of oil and gas operations is essential for property owners, investors, and industry stakeholders alike. That’s where attorney Rhett Bartlett comes in.
Lease Negotiation & Drafting
Oil and gas leases are critical agreements that define the relationship between mineral owners and energy companies. These contracts outline key terms such as royalty rates, lease duration, drilling obligations, and surface use rights, all of which impact the financial and operational aspects of resource extraction.
Proper lease negotiation ensures that landowners receive fair compensation while protecting against unfavorable terms, such as excessive deductions for post-production costs or indefinite lease extensions.
A well-drafted lease clarifies production rights, environmental responsibilities, and liability protections, reducing the risk of disputes. Negotiations often address bonus payments, shut-in clauses, and termination provisions to safeguard the interests of all parties involved.
Understanding the fine print in lease agreements is essential, as poorly structured terms can result in lost royalties or restricted land use.
Surface Use Agreements
Surface use agreements (SUAs) are essential for balancing the rights of mineral owners and surface landowners, particularly in states like Texas, where mineral rights often take precedence. These agreements outline how oil and gas operators can access and use surface land for drilling, pipelines, and infrastructure while minimizing disruption to the landowner’s property.
Without a clear surface use agreement, disputes can arise over land damage, road access, water usage, and compensation for lost land value.
Key provisions typically include land restoration obligations, environmental safeguards, and compensation for damages or disruptions. Landowners may negotiate limits on drilling locations, access routes, and the use of groundwater to protect their agricultural or residential land.
These agreements help prevent conflicts by ensuring that operators extract resources responsibly while preserving the surface owner’s rights. A well-structured SUA reduces environmental impact, establishes fair compensation, and promotes cooperation between energy companies and landowners.
Mineral Rights & Royalty Interests
Mineral rights grant ownership of underground resources, including oil, gas, and minerals, separate from surface rights. Owners can lease these rights to energy companies in exchange for royalty payments, typically a percentage of production revenue. Royalty interests vary based on lease terms, production costs, and market conditions.
Disputes often arise over non-payment, improper deductions, or unclear ownership claims. Conducting title reviews and due diligence before leasing or selling mineral rights helps prevent legal conflicts and ensures fair compensation for resource extraction.
Reach out to Bartlett Law, PLLC Today
Oil & gas issues are complex, and negotiating away your rights on your own could leave you in a bad position. Contact us today to learn how Bartlett Law, PLLC, can help.