Protecting Your Rights as a Non-Operating Mineral Owner in El Paso
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Like other Texas cities, El Paso has ample resource-rich land, often leading to disputes between landowners, non-operating mineral owners, and oil and gas developers. Land and mineral owners may see underpaid royalties or discover unexpected damage to their land or resources. Oil and gas contracts are designed to protect land and mineral owners, but the complexity of these legal agreements can be challenging to navigate without an experienced legal team.
Our team of West Texas lawyers at Carabin Shaw has extensive experience with contracts, leases, and other documents used in oil and gas negotiations. We protect the rights of land and mineral owners and ensure they receive the royalties they are due. If you are a non-operating mineral owner involved in an El Paso gas and oil royalty dispute, contact our office today at 800-862-1260. We have English- and Spanish-speaking professionals available to speak with you 24/7.
Working Interest vs. Royalty InterestPeople who own or operate land containing oil or gas may have different interests in the property and resources. A working interest typically belongs to oil and gas developers, allowing them to drill and extract oil through a lease agreement on the land. Working interest requires a substantial upfront investment, but it also ensures that the majority of the production profits go to the developer. Owners with a working interest also bear the expense and risks of exploration and production.
Royalty interest entitles the owner to a percentage of the production profits. Non-operating mineral owners may have royalty interests without a say in daily oil operations. They must rely on the terms of their contract to ensure they receive their royalty payments and other rights regarding the land or the resources. When a dispute arises, an attorney specializing in oil and gas litigation is often necessary to resolve the disagreement and protect the mineral owner’s rights.
Understanding Texas Non-Operating Mineral Owner RightsNon-operating interest in oil and gas property in Texas does not entitle the mineral owner to a say in daily operations. That right or working interest belongs to the developer who has contracted a lease to test, drill, and operate the extraction process. This working interest requires the developer to foot the bill for operational costs and follow lease terms that benefit the mineral and surface land owners. Non-operating mineral owners also have the right to receive:
- Bonus payments
- Delay rentals
- Royalty payments
These payments are typically outlined in the lease between mineral owners with a non-operating and working interest in the properties. The Railroad Commission of Texas has primary jurisdiction over the oil and gas industry, while the Texas Natural Resources Code governs how and when royalty payments are made. Despite regulation, non-operating mineral owners often encounter disputes with the oil and gas developer over royalty payments, lease breaches, or surface land damage and contamination.
What El Paso Oil and Gas Lawyers Can Do for YouTexas produces nearly 2 billion barrels of oil and 9 billion MCF of natural gas annually. Non-operating mineral owners can profit substantially from the abundant production, but disputes over El Paso oil and gas royalties are common. Mineral and surface land owners also face concerns over potential damage to the land or contamination of nearby soil, water, and air. When oil and gas developers don’t hold up their end of an agreement, your lawyer will:
- Negotiate lease agreements to ensure owners receive fair compensation
- Investigate production logs to determine whether royalties are underpaid
- Pursue claims of land damage or contamination to hold oil companies accountable
- Help mineral owners understand the complexities of oil and gas laws in Texas
If you are in an oil and gas dispute, the experienced professionals at Carabin Shaw can help. We understand the complexities of oil and gas contracts, and our expert lawyers will hold developers accountable for terms and royalty payments. We offer our services on a contingency-fee-basis, so you don’t pay until you get paid. Our client reviews attest to our dedication to land and mineral owners like you and our ability to negotiate fair settlements. Contact us now at 800-862-1260 for a free consultation.
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