On Bauer Business Focus—A conversation about litigation issues facing the energy industry with Houston Public Media News 88.7 Business Reporter Andrew Schneider.
As the oil and gas industry continues to generate billions, litigation cases regarding land and lease rights are cropping up more frequently. Partner of law firm Thompson & Knight, Gregory S. Meece, recently stopped by Bauer Business Focus to discuss the increasing trend in energy industry litigation.
With oil and gas companies creating numerous fracturing developments, issues with land owners are on the rise when they try to get out of their leases.
“Primarily these land owners want out of their lease because when they entered into those leases originally the oil and gas prices were a lot lower,” Meece said. “They want to get the lease terminated so that they can lease at a higher rate to someone else.”
According to Meece, the landowners will come up with any unique theory they can to extricate themselves from the lease. And the problem just isn’t here in Texas, it’s nationwide. Luckily, for operators in Texas, Meece says that oil and gas laws in the state provide protection from land owners compared to other states.
“It’s a problem with all the states,” Meece said. “Many times you will see the land owners are contending that the operator, who has drilled on their property, is not paying proper royalties. They say it’s been improperly calculated. The nice thing about Texas is that there is over 100 years of well-developed oil and gas law. It is probably the best developed oil and gas law in the country.”
Click here to hear the full interview.