Oil, Gas, and Natural Resources
Oil and gas compensation
The laws for production companies and interest owners’ interactions are few. Leases, contracts, and Division Orders outline your rights and responsibilities.
You must take every opportunity to protect your rights to compensation for your interests, including a solid lease:
- Specifying the amount of your royalties (either a percentage or amount)
- Specifying if the company pays that amount per unit of measure or overall production income (ex. a percentage of the whole income, a set amount per barrel of oil, etc.)
- Specifying how long the production company has to begin production before the land and mineral rights revert to you
- Specifying your signing bonus, if any
- Specifying clean up and other environmental obligations
- Specifying the depths and limitations on drilling
Contact Sloan, Bagley, Hatcher & Perry Law Firm with all your oil and gas questions in Texas, Louisiana, and Mississippi. Our oil and gas compensation attorneys give you the facts the production companies might not want you to know.
Enforcing lease terms
Your lease must contain specific language limiting the rights of a production company. Otherwise, they may drill anytime, any way they see fit, without being accountable for property damages.
You have options when you believe your production company is in breach of your agreement. We help you determine the appropriate action, such as filing a lawsuit or sending a demand letter. We also discuss how to handle the situation, effectively keeping a mutually beneficial relationship if possible, and holding the company to their word.
Some states hold that a Division Order overrides a lease when the documents have contradictions. These require the attention of attorneys familiar with natural resources law in your state.
We can explain how your lease and Division Order affect each other. We work with you to find a solution when a production company breaches your agreement.
Our lawyers are experienced in gas, oil, and contract regulations that affect enforcing your lease terms in Mississippi, Louisiana, and Texas.
Fighting unfair royalties
Your lease or contract defines how the production company pays you for your mineral interests. The production company will generally pay royalties on the schedule to which you agree with a few exceptions:
- A new production company becomes responsible for dispersing your royalties and requires time to set up payments
- The production company puts a Petty Suspense on your royalties because they do not amount to company or legal distribution minimums
- The production company imposes a Legal Suspense on your payments because they believe your interest claim is in question or dispute details you provide
- The well is no longer producing natural resources
Unfortunately, we have seen many oil and gas production companies fail to make full payments for reasons other than the legal exceptions. These companies fail to account for the barrels of oil or total amount of gas they sell. They overstate their post-production costs or report expenses inaccurately.
Our oil and gas lawyers review your royalty statements for questionable deductions. We make sure the production company provides the sale details required by law and only reduces your royalties when appropriate.
Mineral rights consulting
Our firm advises you of the many situations that can affect your royalties, property, and interests when you have mineral rights, too:
- Property sales
- Purchase of mineral rights besides oil and gas
- Multiple royalty interests for one location
- Environmental regulations
- Construction of wells and rigs
We offer sound guidance during legal consultations that helps maximize the benefits of your mineral rights. Before signing any document that may limit or alter your compensation, you can meet with our lawyers for a free consultation and discuss how we can represent your best interests.
Natural resources litigation
- Finding the Rigth Oil and Gas Consultant
- Understanding Surface and Ownership Rights in Louisiana, Texas and Oklahoma
- Fuel Supply and Participation Agreements Law in Louisiana, Texas and Oklahoma
We understand how frustrating your oil and gas compensation dispute can be. Sloan, Bagley, Hatcher & Perry Law Firm does everything in our power to make sure you get the compensation you deserve. Our skilled litigators represent your interests and speak for your goals.
