Texas Surface Rights
Texas ownership rights apply to the surface of the property and also to the subsurface of the property. The subsurface property rights are commonly referred to as Texas mineral rights. Normally, complete ownership of property includes Texas or Houston surface rights and mineral rights. However where Texas oil and gas is abundant, the mineral rights might be sold or leased to oil and gas companies by the property owner. In Houston, it is common for different owners to have interest in surface rights and minerals rights on the same property. Texas state regulation of mineral rights, surface rights, and specific rights can be complex, below is some description on these topics.
Texas Land Owner Royalties
Disputes often arise when the mineral rights owner of the property is not the owner of the surface rights or when the mineral rights are leased to an oil or gas company. The surface rights owner often takes issue with how the oil or gas company accesses and maintains the property around the drilling operations. Disputes also arise between the surface rights owner and the oil or gas company in regard to the treatment of abandoned wells or drilling operations. It is important for mineral rights owners to understand Texas oil law, in order to avoid disputes and develop legal defenses to the surface rights owner complaints.
Houston Land Owner Royalties
Houston property owners who lease their mineral rights to gas or oil companies have a right to collect landowner royalties, if oil or gas is discovered on their property. The calculation of these royalties can be complex, especially if the oil is being drawn out of many parcels of land owned by many different parties. Texas and Houston law of capture states that the first landowner to drill captures the right to the oil, even if that oil is being pulled from several different properties. The Texas law of capture regulation allows enables claims of not just oil but other natural resources.
Houston Oil Rights and Texas Participation Agreements
Houston oil and gas regulation uses participation agreements as a way of distributing the landowner royalties among many owners who may not have a drill on their property, but whose oil is being drawn out on a neighboring property. Disputes regarding royalties and royalty calculations are prevalent, but can be avoided through well crafted mineral rights leases and well defined Texas or Houston participation agreements.
Houston Ownership Rights and Texas Fuel Supply Agreements
A Texas oil and gas attorney experienced with Houston drilling contracts may be required to avoid disputes over surface rights, landowner royalties, and participation agreements.
