Texas Oil Law
In the state of Texas, oil and gas law has a long history dating back to the late 19th century when the first oil well starting producing oil. Over the years responsibility for the regulation of the oil and gas industry has been given to the Texas Railroad Commission. With the growth of the Texas oil and gas industry and the development of the laws and regulations, the practice of Houston oil and gas law has become a specialty in Texas.
Texas oil and gas law
Texas oil and gas lease law is governed by state statutes and common law. Much of the oil and gas law in Texas is focused on acquisition and ownership rights, and lease acquirement while it is in the ground and after it is extracted. Ownership of property in Houston is usually a fee simple estate, which means the property owner owns the rights to the surface of the land, as well as the subsurface of the land. When oil and gas were first discovered in Houston, ownership of the subsurface, or the Texas mineral rights, became a lucrative business. Over the years, many businesses have been acquiring, divesting, and leasing mineral rights resulting in a new area of law which specializes in Texas oil and gas litigation, the contractual transfer of property rights and land lease agreements.
Houston Gas Law and the Texas Railroad Commission
Texas gas law in regard to ownership of extracted minerals, are based on capture laws. Essentially, the capture law states whichever property owner drills and captures the oil or gas on his property first owns it, even if the oil or gas is being pulled from a neighboring property. While this staple law has prevented or advised on Houston gas laws, it was not perfect. In the early years of the oil and gas business in Texas, the capture law caused many property owners to drill quickly without regard to safety, damage to the subsurface or to the environment, or the effect on the market. As a result, the Texas Railroad Commission was given the authority to regulate Texas gas laws. The Railroad Commission enforces oil and gas law in Texas, as well as gas laws in the areas of production and safety, protection of the environment, and preservation of individual property rights through inspection, reporting requirements, and fines.
Texas Oil and Gas Laws - Contact us
A Texas oil and gas attorney from Sprouse Shrader Smith possesses a wealth of experience with Texas oil laws. Our Texas oil and gas attorneys have worked with the Texas Railroad Commission, Texas oil laws, and in assisting clients in every aspect of gas, mineral, and related natural resources laws including litigation. We advise on Houston oil laws, transactions, negotiate and draft a variety of contracts, and handle all related litigation and disputes.
