Houston Oil and Gas Attorneys

Texas is the largest oil and gas producing state in the country, and Houston is the energy capital of the world. Whether you are a landowner who has been approached about an oil and gas lease, a royalty owner with a dispute, or a company navigating surface use rights and pipeline agreements, Holmes Law, PLLC provides experienced oil and gas legal counsel throughout Texas.

Call (832) 509-0445 for a free consultation with a Houston oil and gas attorney.

Oil and Gas Legal Services in Texas

Oil and Gas Lease Review and Negotiation

Before you sign an oil and gas lease, have it reviewed by an attorney. Lease terms vary enormously and the language that benefits the operator almost always disadvantages the landowner. We review and negotiate all aspects of oil and gas leases including royalty rates, bonus payments, lease terms, depth clauses, pooling provisions, surface use restrictions, and shut-in royalty clauses. A well-negotiated lease can mean tens of thousands of dollars in additional royalties over the life of production.

Royalty Disputes

Royalty owners in Texas frequently experience underpayment, late payment, or disputes over how royalties are calculated. Common issues include improper deductions for post-production costs, incorrect application of the royalty fraction, failure to pay on all production, and disputes over the value used to calculate royalty payments. We represent royalty owners in disputes with operators over royalty accounting and payment obligations.

Surface Use Agreements

If you own the surface rights to property and an oil and gas company wants to use your land for drilling, pipeline installation, roads, or equipment storage, you have the right to negotiate a surface use agreement that protects your property and compensates you fairly. We draft and negotiate surface use agreements to ensure landowners are protected from unreasonable damage, interference with agricultural operations, and inadequate compensation.

Pipeline Easements

Pipeline companies frequently approach Texas landowners to acquire easements for new pipeline construction. These are permanent encumbrances on your property and the initial offer is almost never the best offer. We represent landowners in pipeline easement negotiations to ensure fair compensation and protective easement language. If a pipeline company is attempting to use eminent domain to condemn an easement on your property, we represent landowners in those proceedings as well.

Mineral Rights and Title

Texas has a long history of severed mineral estates — situations where the surface and mineral rights are owned by different parties. We advise buyers and sellers on mineral rights due diligence, help clients understand what mineral rights they own or are acquiring, and represent clients in disputes over mineral ownership, including heirship issues and competing claims.

Oil and Gas Litigation

When oil and gas disputes cannot be resolved through negotiation, we represent clients in Texas oil and gas litigation. This includes royalty disputes, trespass to try title actions, lease termination disputes, and breach of contract claims against operators and pipeline companies.

Eminent Domain for Energy Projects

Pipeline companies and utilities in Texas have the power of eminent domain to condemn land for energy infrastructure projects. However, landowners have rights in this process — including the right to adequate compensation and the right to challenge the condemning authority’s right to take. We represent Texas landowners facing eminent domain proceedings from pipeline companies, electric utilities, and other energy entities.

Oil and Gas FAQ

What should I do if an oil company wants to lease my land in Texas?

Do not sign anything until you have had an attorney review the lease. The initial lease presented by an oil company is written entirely in the operator’s favor. Key terms including the royalty rate, bonus payment, lease term, pooling provisions, and surface use restrictions are all negotiable. An experienced oil and gas attorney can significantly improve your lease terms and protect your interests for the life of the well.

How are oil and gas royalties calculated in Texas?

Royalties in Texas are calculated as a fraction of the gross production value — or in some leases, net of allowable post-production costs. Common royalty fractions are 1/8 (12.5%), 3/16 (18.75%), and 1/5 (20%). The royalty fraction, whether post-production costs can be deducted, and how production value is measured are all critical lease terms that significantly affect how much you receive. Disputes most often arise when operators improperly deduct gathering, compression, and transportation costs.

Can a pipeline company take my land in Texas?

Yes — in Texas, common carrier pipeline companies have the power of eminent domain to condemn easements for pipeline construction. However, they must pay adequate compensation and follow specific procedural requirements. You have the right to challenge both the right to take and the amount of compensation offered. An attorney can help you negotiate or litigate for fair compensation and protective easement terms.

What is a surface use agreement in Texas oil and gas?

A surface use agreement is a contract between a surface landowner and an oil and gas operator that governs how the operator can use the surface of the property for drilling and production activities. In Texas, the mineral estate is dominant — meaning mineral owners generally have the right to use the surface as reasonably necessary. However, a well-negotiated surface use agreement can limit damage, require reclamation, establish compensation for surface use, and protect specific areas of the property.

What is the difference between surface rights and mineral rights in Texas?

In Texas, the surface estate and mineral estate can be owned separately. Surface rights are the rights to use and occupy the land. Mineral rights include the right to extract oil, gas, and other minerals from beneath the surface. When mineral rights are severed from surface rights, the mineral owner has certain rights to use the surface as reasonably necessary for mineral development — which is why surface use agreements are so important for landowners who do not own the minerals beneath their property.

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