What You Should Know About Oil & Gas Disputes in Laredo, Texas
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Operating independently while securing oil and gas production rights can leave landowners at a disadvantage when negotiating with energy companies. Decisions over oil and gas lease disputes will hinge on the details outlined in the original contract. Only an attorney with Texas oil and gas legal expertise can help you retain your rights.
Our team of Texas lawyers at Carabin Shaw has decades of Texas law experience, and we can help you resolve your oil and gas dispute in Laredo, Texas. We understand your rights as a mineral or surface estate holder, and we can help you seek compensation after a gas company fails to comply with their agreement. We have someone available to speak with you 24/7 in English or Spanish, so call our toll-free number at 800-862-1260 to schedule a free case review.
Oil and Gas Leases in TexasAn oil and gas lease is a contract between a mineral rights owner (lessor) and an energy company (lessee) for the right to use land for gas and oil production. It has several essential components that impact oil and gas litigation in Laredo, Texas, including:
- Granting clause: States the overall purpose of the lease, including a land description and the type of minerals the company will extract.
- Habendum clause: Defines the primary and secondary terms in which the gas company can operate.
- Royalty clause: Designates payments to the lessor from the lessee.
- Termination clause: Outlines how the lease will end.
The details matter regarding lease agreements, which is why an attorney is essential in drafting this legal contract to protect your best interests. Read our client reviews to learn how Carabin Shaw can help protect your oil and gas rights.
Disputes Involving Oil and Gas LeasesDisagreements about the details of a lease may happen years after the lease is created due to changes in circumstances and misunderstandings about the original agreement.
Disputes can be complicated, as in the case of Occidental Permian, Ltd. v. Citation 2002 Inv. LLC. In this case, the issue arose over the depth of the mineral rights, as two parties attempted to give “deep rights” to third parties. The court decided based on the lease's granting clause, which is where it would find depth limitations. This case highlights the importance of quality lease drafting to avoid Laredo oil and gas disputes.
Mineral Interest PoolingThe Mineral Interest Pooling Act (MIPA) encourages mineral estate holders on adjacent properties to pool their interests to avoid unnecessary drilling and property damage. This also prevents one property owner from depleting a reservoir extending to adjacent properties without compensation. Forced pooling is allowed in some circumstances.
Conflicts Regarding Mineral Interest PoolingIn the case of Ammonite Oil & Gas Corp. v. R.R. Comm’n of Tex., the disagreement stemmed from the risk involved in drilling additional wells in pooled units with an insufficient risk fee paid to the energy company doing the drilling. The court deemed this contract unfair, and the Railroad Commission rejected the pooling application. The nature of mineral interest pooling agreements is a common cause of oil and gas litigation in Laredo, Texas.
Property Damage in Laredo Oil and Gas Production LawsuitsA surface damage claim stems from damage to the surface estate owner’s property during drilling operations. The surface owner may differ from the mineral estate owner. A lawyer will address the leased surface rights of the energy company and payment to the surface owner for damages upon completion.
Property damage and subsequent environmental concerns may involve:
- Water supply
- Crops or timber
- Land clearing
- Pollution
South Texas oil and gas lawyers will help landowners to identify their damages to maximize compensation.
Protecting Your Land Rights as a Texas Landowner | Call Carabin Shaw Today & Schedule Your FREE Case Evaluation!Hiring an experienced Laredo TX attorney to protect your land rights ensures you receive fair compensation for oil and damage to your property. At Carabin Shaw, our team guides you through your legal journey so you can receive compensation for any wrongdoings on your property due to oil and gas production. We offer our services on a contingency-fee-basis and have English- AND Spanish-speaking staff available.
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