Surface Owner Rights and Protections in Oil and Gas Development
When mineral rights are separated from surface rights, the mineral owner has more control and can use the land to extract minerals in Texas. However, this dominance is limited by the Accommodation Doctrine, which requires operators to use reasonable alternatives that avoid disrupting existing surface uses. Operators must also provide prior notice and may be liable for surface damages.
While the Texas Railroad Commission regulates drilling, surface disputes have to be resolved in civil courts. To reduce conflict, parties often enter into Surface Use Agreements, which outline the terms of access, compensation, and restoration. Recent legislation further protects landowners near homes and water sources, mandating setbacks and stronger environmental safeguards during development.
Navigating Oil and Gas Law in Texas
The Rule of Capture
Under the oil and gas law in Texas, a landowner can extract oil or gas from their own land, even if it comes from under a neighbor’s land, without being held responsible. This is called the rule of capture. However, this rule doesn’t allow drilling that crosses underground property lines, like horizontal drilling into a neighbor’s land, which is considered trespassing.
Accommodation Doctrine
Even though the mineral owner has more rights, Texas courts apply the Accommodation Doctrine to protect surface owners. If the surface owner is already using the land and drilling would disrupt that use, the mineral operator must attempt to work around it, as long as there’s a reasonable way to reach the minerals without causing conflict.
Pooling and Unitization
Mineral owners can agree to voluntary pooling through the terms of their leases. This allows them to share costs and recover oil or gas more efficiently. However, unlike some other states, Texas does not permit forced pooling (also known as forced unitization) for oil. Pooling can only be required in limited cases, such as for certain natural gas fields, based on rules set by the Texas Railroad Commission.
Royalty Clauses
Royalty disputes often depend on lease wording, whether payment is based on “market value at the well” or the actual amount received. Texas courts usually interpret “market value” as the going price at the well, not the sale price.
Trespass and Subsurface Invasion
In Texas oil and gas law, it’s considered trespassing if a wellbore crosses into land that hasn’t been leased. Even sending seismic waves or using equipment underground without permission can be illegal, even if there’s no physical entry onto the surface.
Adverse Possession of Mineral Interests
Claiming mineral rights through adverse possession can be challenging in Texas. A person must openly use the land and actively produce oil or gas in a way that challenges the record owner’s claim. Just living on the land isn’t enough.
Retained Acreage Clauses
Modern oil and gas leasing in Texas often includes clauses that require the company to return unused land after the main lease period ends. These rules typically follow state-designated drilling areas to prevent companies from holding excessive land without drilling.
Division Orders
Division orders help divide and send payments to royalty and interest owners, but they can’t change what the lease says. If there’s a dispute, it must be settled based on the lease, not the division order.
Continuous Development Obligations
Continuous development clauses require the lessee to drill new wells within set periods after starting production. This keeps the lease active between projects and encourages steady drilling, especially in areas with strong oil or gas potential.
Shut-In Royalty Payments
If a gas well can produce but isn’t selling gas yet, paying shut-in royalties can keep the lease active. In Texas law of oil and gas, these payments must be made on time; otherwise, the lease may automatically terminate.
Termination Clauses And Automatic Expiry
Failure to meet conditions, such as production or payment, can cause oil and gas leases to terminate automatically, a process that occurs regularly under Texas law. No notice or court action is needed; the rights simply return to the landowner.
Best Practices For Texas Oil & Gas Rights Acquisition
- Review the title carefully to confirm mineral ownership and surface use limits.
- Watch for unusual ownership splits in complex Texas property records.
- Use metes and bounds descriptions to clearly define tract boundaries.
- Secure curative documents early (e.g., affidavits of heirship, corrective deeds).
- Negotiate lease terms that address surface use in split-estate situations.
- Add Pugh clauses to prevent holding undeveloped land long-term.
- Use depth severance clauses to limit rights to specific formations.
- Verify pooling agreements to avoid royalty dilution or boundary issues.
- Draft surface use agreements detailing pad sites, water use, and access.
- Conduct environmental checks for old contamination or well issues.
- Use GIS-integrated land software to track leases and payments accurately.
Secure fair lease terms and protect your Texas property. Partner with trusted oil and gas legal experts today.
Benefits of Hiring an Oil & Gas Attorney
Protecting Your Financial Interests
Even small mistakes, such as unclear royalty terms or missed rent dates, can ultimately cost you. A lawyer, especially from one of the experienced oil and gas law firms, helps ensure the details are correct, avoiding disputes and protecting your earnings.
Clear Title and Ownership
Before drilling starts, a lawyer should review the title to identify potential issues, such as split ownership or additional royalty claims, which can help avoid delays or legal problems down the road.
Land Use And Surface Rights
Surface use agreements explain how land can be used and restored. Clear terms help avoid disputes over roads, equipment, or cleanup. A lawyer can help protect both sides fairly.
Navigating Regulatory Compliance
Oil and gas rules come from many levels: federal, state, and local. Staying compliant requires ongoing effort, and legal assistance helps keep your business safe from fines or shutdowns.
Structuring Partnerships and Joint Ventures
When joining deals such as joint operations, farmouts, or unitization, a lawyer from one of the top oil and gas law firms helps ensure that control, costs, and profits are shared fairly and that your rights are protected from the outset.
Managing Risk With Precision
Force majeure clauses, indemnities, and liability caps aren’t just standard text; they’re smart tools. A good oil and gas lawyer customizes them to protect you from unexpected risks.
Conclusion
Understanding oil & gas law in Texas helps you protect your land, avoid costly mistakes, and make informed decisions. Since the rules often favor oil and gas companies, landowners need to stay one step ahead. And knowing your rights gives you the confidence to take control of your property’s future. But if you’re still unsure where to start or need support along the way, we’re here to guide you at MBB, your trusted oil and gas law firm in Texas, dedicated to simplifying the process. You can reach out to us anytime at info@mbb-legal.com, and we will help you move forward with clarity and confidence.