I own property next to oil companies that are extracting oil from under my property am I entitled to royalties
Roanoke, TX
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Posted about 1 year ago in Oil - Gas
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Gas royalties:
My dad owns property in Texas on the Barnett Shale. There are gas wells all around, even in the adjoining property. Is he entitled to royalty checks since the gas this well is pumping gas from under his property as well? He does own the mineral rights.
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Answers (3)Randel David Lee Barrett
This attorney is licensed in Texas.
Posted about 1 year ago.
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If your dad owns the mineral rights related to that real estate, he needs to find someone to lease and develop the mineral interests. The other wells you are referring to are generally allowed to "drain" the interests of other owners, with some exception.
Matthew Roger Reynolds
This attorney is licensed in Texas.
Posted 6 months ago.
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Texas subscribes to the rule of capture. By this I mean that the remedy that a mineral interest owner has for being drained by a neighbor is to drill his own well and thus "capture" the transient oil and gas from under his land before it flows out of his neighbor's wells. Royalties are only payable in the event that your dad has leased his minerals to an oil and gas company, and that company has obtained oil and gas from under his lands, or lands that have been pooled with your father's land.
Stephen Boyd Moon
This attorney is licensed in Texas.
Posted 3 months ago.
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I agree with the answers provided by the two attorneys above. That is, unfortunately, you are not entitled to any of the drainage or production that may or may not be coming from your land. While this may appear bad, it may in fact be a blessing in disguise. Often, production companies are unwilling to stake their claim on a unproven area (or "wildcat") and even if they are interested in your lands may not pay a premium price. Having a producing well next to your property may give other producers the confidence and incentive to lease your lands. I recommend that you get in touch with an oil and gas attorney that has connections with landmen and production companies and to see if there might be someone interested in leasing your lands.
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