It’s a boom time in Texas and the surrounding states for oil and gas energy. Lots of people are making money by selling mineral rights or allowing drilling or pipelines on their property. Have you been approached about an oil or gas project on your land?
Before you sign that lease or contract, you should discuss the opportunity with a law firm that has experience negotiating and drafting:
- Mineral rights agreements
- Use agreements/surface use agreements
- Rights of way
- Disposal agreements
- Joint operating agreements
For one thing, you need someone to perform the necessary due diligence before you agree to any such contract. You may want a title opinion. There may be permits you are required to get. A good lease or contract should contain certain terms that will require the company to actually move forward with the project.
Perhaps most important, you need someone to help ensure you’re getting a good deal. And, if a dispute should arise, you need someone to protect your rights.
There are pros and cons to oil and gas agreements
Whether you’re inviting a company to put a well on your land or signing an easement for a oil and gas pipeline, you should know that there are potential downsides and how to protect yourself.
Oil and gas projects can cause substantial property damage and restrict your future use of the property. Unless negotiated properly, they can even hinder your financial opportunities.
Understand the long-term impacts and potential impacts before you agree to anything. An experienced oil and gas attorney can explain what terms are necessary to limit the potential damage and downside risks.
If you have been approached about an oil and gas project or any energy project on your land, be sure you fully understand all the details and legal requirements before you sign anything. Your land is worth the effort.