Protecting Your Interests in Texas: A Guide to Midland Oil and Gas Law

Some Midland, TX, landowners may find themselves in conflict with oil and gas companies who own the rights to drill and extract minerals from their land. While these rights can seem like a violation of property rights, hiring a lawyer can help you secure the rights you do have and receive compensation for the natural resources or property damage when possible.

The Midland lawyers at Carabin Shaw understand Texas property laws and can help you protect your interests in an oil and gas dispute. We offer our services on a contingency fee basis so our clients aren’t burdened financially. We also have English—AND Spanish-speaking staff available 24/7 to take your call. Call our toll-free number at 800-862-1260 to set up a free case review.

In Texas property law, minerals refer to oil, gas, and other naturally occurring minerals at any depth on a piece of property. Mineral rights allow the mineral estate holder to drill for oil and gas. This is separate from surface rights, which belong to the property owner for regular land use. In many cases, the property owner does not have mineral rights to their land, which can result in disputes and Texas oil and gas litigation.

The Railroad Commission of Texas (RRC) regulates and enforces mineral rights. This includes setting limitations on the extraction of minerals. Examples of these regulations include:

• The mineral estate holder’s rights generally supersede the surface estate holder’s rights.
• The mineral estate holder may use the surface to explore and produce minerals.
• The mineral estate holder does not need the permission of the surface estate holder to exercise these rights.
• The mineral estate holder should reasonably accommodate the surface estate holder’s land use when possible.
• Properties within a city’s jurisdiction may limit oil and gas extraction.

Disputes arising from mineral rights typically involve ownership and royalty fees, but they may also include environmental complaints. Parties must follow current Midland oil and gas law to determine who has the rights to the minerals, who financially benefits from the sale of those minerals, and who is liable for the environmental impact of the extraction methods.

In most cases, the surface estate holder is the property's lessee, and the mineral estate holder is the lessor. Oil and gas lease disputes are frequently stressful for surface estate holders, who may face some property damage because of this relationship.

Midland Development Services enforces regulations regarding oil drilling, so mineral owners must safely extract minerals with little damage to the environment or the surface owner’s property. When mineral owners, surface owners, or the public have a complaint, a lawyer may be necessary to find a resolution.

To avoid disputes, many landowners and mineral owners will develop a surface use agreement (SUA) that governs how a mineral owner will use a landowner’s property. Texas does not require these contractual agreements, but they give surface owners more rights and protection from mineral owners’ potential reckless land use. Hiring an attorney is the best way to draft an SUA that provides legal recourse for a surface owner in case of property damages from the mineral owner.

One thing that many surface estate owners take advantage of is royalties that they may receive in the event of profitable mineral extractions. Royalties may also extend to other investors, which the mineral owner pays much like a dividend to a stockholder. Disputes regarding royalties are often decided in court, where the plaintiff’s legal team can present facts regarding royalty agreements and the royalty owner’s rights.

At Carabin Shaw, our team is compassionate about the law and preserves the rights of property owners, whether they own surface or mineral rights. We encourage you to read our client reviews so you can see why many people call us the best oil and gas attorneys in Midland, TX. Call us today to set up your first appointment to secure your mineral property rights.

For more information:

• City of Midland - Oil & Gas
• Railroad Commission of Texas - Oil & Gas
• Railroad Commission of Texas