An Overview of Oklahoma Oil and Gas Law
Mineral estate
The mineral estate in Oklahoma consists of the following rights:
- To drill yourself
- To execute an oil and gas lease
- To receive bonus
- To receive royalty (Oklahoma acknowledges nonparticipating royalty)
Each element of the mineral estate can be owned, conveyed, reserved or inherited separately from the other elements. The leasing right for oil and gas in Oklahoma is a personal right, not a real property right, and thus is not inheritable when reserved by the grantor. The leasing right descends to the heirs if it is reserved by the grantor, his heirs, executors, administrators and assigns.
Contact the Sloan, Bagley, Hatcher & Perry Law Firm with all your questions about Oklahoma oil and gas law. Our experience in Oklahoma oil and gas litigation is extensive. Our attorneys can put Oklahoma oil and gas laws to work for you.
Casinghead gas
Under the rules of Oklahoma oil and gas regulation, casinghead gas is considered neither oil nor gas. Courts have held that casinghead gas was covered by an oil and gas lease and was subject to a special royalty provision where the lease contained a provision for gas produced from an oil well and used off the premises.
As a practical matter under Oklahoma gas laws, the fact that casinghead gas is considered neither oil nor gas is important only in very old oil and gas leases which provide for royalty on oil and a flat annual payment for gas, but do not provide for any royalty for casinghead gas under Oklahoma oil laws.
Oklahoma law of capture
The law of capture determines ownership of captured natural resources including oil and gas. The general rule is that the first person to capture such a resource owns that resource.
Unlike Texas, Oklahoma has adopted the exclusive-right-to-take theory that a land owner does not own the substances that underlie his land, but merely retains the exclusive right to capture the substances, a non-corporeal interest.
Let us clarify Oklahoma oil law for you
Without skilled legal guidance, you can easily get lost in the nuances of oil and gas laws in Oklahoma. Contact the Sloan, Bagley, Hatcher & Perry Law Firm with all your Oklahoma oil and gas questions. We will clarify the issues for you and, if necessary, handle your Oklahoma oil and gas litigation. Call us at 1-888-339-6132 or contact us online.
