Minerals, Surface Rights, and Royalty Payments

The exploration and production of minerals, especially oil and gas, have played an important role in the economic development of Texas. Because most of the oil and gas is privately owned, a body of law has evolved in the state that defines ownership rights.  Successful negotiation of an oil and gas lease requires knowledge of the lease terms, common sense, foresight and diplomacy. Even with knowledge of lease provisions, a mineral owner easily can overlook the problems associated with division orders and royalty checks. Therefore, treatment of division orders and royalty checks should be on the agenda of every oil and gas leasing transaction.



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