Details on Texas Oil and Gas Law
What is unique about Texas oil and gas law
Oil and gas law in Texas is complex. It is important to have help from an attorney experienced in Texas oil and gas laws to fully understand the implications of these laws for your situation.
At the Sloan, Bagley, Hatcher & Perry Law Firm, we can answer all your questions about Texas oil and gas law. Our experience in Texas oil and gas litigation is deep, and our attorneys have the knowledge and skills to put Texas oil and gas law to work for you.
Mineral estate
With regard to oil and gas in Texas, the mineral estate consists of the following recognized rights:
- To explore and develop
- To execute an oil and gas lease
- To receive bonus
- To receive delay rental
- To receive royalty (including permanent nonparticipating royalty)
Under Texas oil law, each element of the Texas mineral estate can be owned, conveyed, reserved, or inherited separately from the other elements.
Casinghead gas
Texas oil and gas regulation recognize that wells seldom produce only oil or only gas. It is generally accepted that gas produced from an oil well is called casinghead gas and belongs to the owner of the oil, while liquids produced from a gas well belong to the owner of the gas.
Texas 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.
Among U.S. states, two different theories of ownership of oil and gas hold. Texas has adopted the ownership-in-place theory for oil and gas, meaning a land owner owns a corporeal possessory interest in the substances beneath his land, but his ownership is a determinable fee subject to the rule of capture.
Open Mine Doctrine
This doctrine states that if a lease was in effect or if a well was producing at the time a life estate was created, the life tenant is thus entitled to receive all royalty. A person who makes a will may grant authority to his executor or trustee to execute oil and gas leases and they will also receive the open mine benefit.
Let us clarify Texas oil laws for you
It is clear that oil and gas law in Texas is complicated and nuanced. Without skilled legal guidance, you can easily get lost in the fine points of oil and gas laws in Texas. Contact the Sloan, Bagley, Hatcher & Perry Law Firm with all your Texas oil and gas questions. We will clarify the issues for you and, if necessary, handle your Texas oil and gas litigation. Call us at 1-888-339-6132 or contact us online.
