TXOGA’s Response to the KENS Story Regarding County Lawsuit Threats

TXOGA has not threatened to sue any county regarding transportation fees

The Texas Oil & Gas Association (TXOGA) issued an official response to a story reported by KENS Channel 5. You can watch the report in the article Eagle Ford Oil Companies Fight Back – State Revenues Should Be Shared. KENS 5 reported that oil companies were threatening counties with lawsuits and the organization released this response:

Texas Oil & Gas Association Memo Explained Current Law on Counties’ Authority and Roads — TXOGA Did Not Threaten Lawsuit and Believes Current Law May Need to Change so Counties Receive Necessary Funding

The following can be attributed to Deb Hastings, executive vice president of the Texas Oil & Gas Association (TXOGA): [Read more…]

Lawsuits Over Mineral Rights on the Rise

Lawsuits over the nature of mineral leasing and the high stakes game of who owns and who leased first is a multi-million dollar issue in South Texas. Everyone sells land and leases minerals happily until acreage prices skyrocket. That’s when the lawyers come out. That’s when people realize they might have missed something very big. The gravy train of $10,000+ per acre lease bonuses and long lived royalties might have passed right by. Often times, real estate trades for fractions of the dollar before oil or gas is discovered.

In a 1-2 year time period in Northern Louisiana, acreage prices in the Haynesville Shale increased from less than $3,000 an acre (that was good) to sell land and mineral rights to simply leasing minerals for as much as $20,000 per acre. Prices have come down, but the boom is much like what we’experiencing in the Eagle Ford.

The dollars involved also increase the likelihood of fraud. There will no doubt be bad apples, but companies do their due diligence on title and many of these issues are resolved before leasing. If you are leasing, always do research to make sure you’re working with a reputable party.

[Read more…]