Oil & Gas Royalties in Texas
There is no standard oil and gas royalty rate. Oil and gas royalties actually paid to mineral rights owners depend on several factors and are negotiable. Because market factors that drive oil and gas royalty rates vary over time, newer leases in high-demand areas like Texas' Barnett Shale or the Haynesville Shale can earn higher royalties than older leases in the same regions. If you are a landowner trapped in a lease paying lower than market royalties, you may do well to carefully evaluate the terms of your lease. There may be circumstances that provide an opportunity to break an existing oil or gas lease, freeing you to negotiate a new, more favorable lease at current market royalty rates.
Although Texas statutes address the rights of landowners in oil and gas leases, no authority is charged with oversight to ensure private landowners are getting paid due royalties. Landowners have few options but to take matters into their own hands, carefully monitor their interests, and go to court to when necessary. It's not uncommon for oil and gas companies to try to find ways to shave money out of oil and gas royalty payments by under-reporting production, overstating post-production expenses, and other means. When they do, an experienced Houston litigation attorney can bring the resources and expertise to make a strong case against them and claim the royalties you are owed.
Protect Your Rights: Contact a Texas Oil & Gas Lawyer
If you are involved in a dispute over unpaid oil and gas royalties, under-reported production, over reported post-production expenses, or any other cause that denies you royalties that you are due, you should consult an experienced oil & gas attorney to learn more about your options. The oil & gas attorneys at Arnold & Itkin LLP can explain your options and fight to protect your rights in court if necessary.
Contact an oil and gas lawyer from our firm. (888) 493-1629