Frequently Asked Questions
What are Oil & Mineral Rights?
Typically, when you purchase a home, it comes with two sets of customary rights, known as “estates”. You own not only the home, fixtures, etc., but also the plot of earth upon which it was built (“surface estate”). Your land, under the law, extends from the edges of your property downward to the core of the earth. You may also own the rights (“mineral estates”) to anything under your section of the earth, such as oil, gas, precious minerals, etc. Texas law recognizes the right to separate the mineral estate, in whole or in part, from the surface estate. They mineral estate can be sold separately from the surface estate or held back by the seller at the time of the sale of the surface estate. They can be tied to the home, sold separate from the home, retained for your heirs, or leased to an outside party for exploration. Texas law typically holds, with certain exceptions, that the mineral estate is superior to the surface estate, and the mineral estate owner typically has the right to make reasonable use of the surface in developing its minerals.
Why are leasing companies interested in my rights?
Our homes here in the Metroplex were built over the “Barnett Shale”, a huge area where natural gas is trapped within the earth. For many years, the process used to extract the natural gas was not cost-effective; however, during the 1990’s, a more cost-effective approach was developed: hence, the boom in natural gas production, exploration, and drilling. They will secure your rights for the least amount of money and either drill a well themselves or sell the leases to a driller.
Can they drill anywhere they want?
No. The State of Texas sets the parameters for all wells and drilling. The Texas Railroad Commission authorizes, monitors, and inspects the wells. Local municipalities also impose their own guidelines, which are typically more stringent than the State.
What is a typical drilling process?
Please see the Gas Drilling 101
(Download)
presentation.
Where can I get more information about all this?
What other steps should I take?
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| What Leasing Company Might Offer | What You Want |
| Signing bonus of a few hundred to $1,000 |
Click here to view a map of historical lease agreements in our area. |
| Royalties ranging from 15% to 22% after expenses |
| Automatic right to renew at a minimal cost |
No automatic right to renew. They should renegotiate with you at the prevailing market rate. |
| Right to use the surface |
No surface use |
| No Pugh clauses |
Pugh clauses included (seek legal counsel for additional information) |
| Access to your ground water |
No access to your ground water |
| Right to all minerals |
Right to oil, gas, and liquid hydrocarbons only |
| Guarantee of title |
No guarantee of title |
| You pay subordination fees |
They pay subordination fees |
| No shut in payments |
Shut in payments |
| No legal recourse |
Legal recourse |
| You pay to extract gas |
They pay to extract gas |
| No environmental or quality of life protection clauses |
Environmental and quality of life protection clauses |
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What if I don’t ever want to lease my minerals?
You don’t have to. The drilling companies must stay at least 330 feet away from your home if you chose not to lease.
Who should I contact if I am interested in joining this particular group?
Register on line by clicking the Regsiter link on this website.
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