We represent landowners who lease their land to energy companies. Every energy company from Big Oil to natural gas has an economic incentive different from yours—to extract the oil or gas under your land for a minimum amount of lease payments to you. If you have a significant amount of acreage, it can mean a lot of money ("bonuses") for them.
Energy companies are required by law to "re-lease" your land every three years, adjusting up or down depending on how much oil or gas there is under your land. So, they have an economic incentive to hold the original lease in place—which you can bet they'll do through the loophole of "commencing operations."
If you are a landowner involved in an oil lease dispute, contact us online or call (210) 774-6445 for a free consultation with our oil lease dispute lawyers in San Antonio.
The Loophole in the Oil Lease
Is your lease about to expire? Has the oil company done nothing on your land? Don't be surprised if you suddenly see the company "commencing operations" just prior to the re-lease period. You might see the company build a road or run a seismograph around the land.
It's nothing but a sham. The company is hedging its bets. If you have an old lease in a newly-productive area with oil wells and natural gas deposits, the lease payments to you should probably go up, but if the oil company has "commenced operations" under the original lease, the original lease stays in effect. This shorts you the true value of your oil and gas lease payments.
Attorneys Helping Landowners in Texas Oil Lease Disputes
It never hurts to get some advice. If you lease your land to an energy company and you have any concerns regarding the lease and whether or not you're being treated fairly, contact our firm today. Our experienced San Antonio oil lease dispute attorneys are happy to answer your questions and provide you with personalized legal guidance.
Call us at (210) 774-6445 for a free and confidential consultation today.