Oil & Gas Royalties

Market factors drive oil and gas royalty rates and those factors can vary over time. Newer leases in high-demand areas like Texas' Barnett Shale or the Eagle Ford Shale can earn higher royalties than older leases in the same regions.

Further, in older fields, the rights may be owned by the children or grandchildren of the original lessors. In these cases, it is quite possible that owners of the mineral rights are unaware of their current value.

If you are a landowner trapped in a lease paying lower than market royalties, or you are children or grandchildren of the original owners, 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.

Texas statutes address the rights of landowners in oil and gas leases. However, there is no authority charged with ensuring that private landowners get paid the royalties they are due. Landowners have few options but to take matters into their own hands, carefully monitor their interests, and go to court to when necessary to protect them.

Private land owners rarely have the resources that major oil and gas companies do. An experienced oil and gas attorney — who is on your side — can bring the resources and expertise to make a strong case against them and claim the royalties you are owed.

If you believe you have the basis for an oil or gas dispute case, it is important to protect your rights. Do not delay in contacting an attorney.