Energy Industry (Oil & Gas)/lease



A gas company wish me to sign a contract on my land. They have drilled a well already and told me that I am in a pool and will receive royalties. They are offering me 15 % minus deductions but they will not spell out the deductions in contract. They tell me it is for gas pipeline fees only. Should I trust this or say no until they put it in writing. They are also telling me that if I don't sign they will just take the gas from me and give me nothing.

Bill, it sounds to me like you need to consult an attorney there to make sure your rights are protected.  Whatever you do, make sure everything you do or agree to with this company is in writing.  Unfortunately, it's not wise to trust that folks will do what they say they are going to do, so a written agreement is essential. Also, I think it's unlikely that this company would have the right to take your property without payment.

I wish I could be of more help but I think the best vice that I can give you is to contact an attorney in your area who can make sure everything is up and up here.

Good luck and let me know if you have any further questions.  

Energy Industry (Oil & Gas)

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David B. McCall


Questions regarding oil and gas exploration and production, the operation and management of oil and gas producing properties, and questions related to mineral ownership, title problems, and oil and gas leases.


I am Board Certified in Oil, Gas and Mineral Law in the state of Texas. I have more than 37 years of experience in the industry as both an in house attorney for major oil companies and as a partner in oil and gas firms. I am also a mineral owner and receive royalties from oil and gas production. I have extensive title examination experience, and have represented clients in many administrative and court proceedings.

State Bar of Texas, Texas Bar Foundation, and Austin Bar Foundation.

Various state bar seminars on Oil and Gas matters.

I have a business degree in marketing from McMurry University, 1971, and a JD degree from Texas Tech University in 1974, where I graduated 17th in my class. Board Certified in Oil, Gas and Mineral Law in 1986.

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