Leaders In Oil And Gas Law

Stubbeman, McRae, Sealy, Laughlin & Browder, Inc., in Midland, Texas, offers comprehensive service in oil and gas law matters. A pioneer in the industry, the firm’s attorneys provide strong legal guidance when it matters most.

Handling Important Legal Matters Throughout The Permian Basin

In the oil and gas industry, few things are more important than experience. The law office of Stubbeman, McRae, Sealy, Laughlin & Browder, Inc., has been serving clients in West Texas and Eastern New Mexico with oil and gas development matters since 1936. As one of the first law firms in the region to handle energy law matters, it has established a reputation of providing strong, cost-effective legal advice.

The firm’s lawyers have decades of combined experience handling:

• Title examination
• Oil and gas transactions
• Litigation involving oil and gas matters, including contract disputes

Frequently Asked Questions About Texas Oil And Gas

Oil and gas clients often have questions about oil and gas litigation. The following addresses common inquiries. For specific guidance on your unique situation, schedule a consultation with an attorney at Stubbeman, McRae, Sealy, Laughlin & Browder, Inc..

What are the common causes of disputes in oil and gas projects?

Oil and gas disputes typically arise from several key sources. Ownership conflicts occur when competing claims to land, minerals or royalty rights emerge, particularly in areas with complicated title histories. Contract disputes develop when parties disagree about drilling obligations, development timelines or performance requirements outlined in leases or operating agreements. Technical disagreements about downhole accidents or wellbore damage can lead to substantial liability claims. Joint operations disputes often involve disagreements about management decisions, cost allocations or accounting practices between working interest owners. Payment conflicts related to royalty calculations, deduction of post-production costs or marketing arrangements also commonly trigger litigation in the industry.

What steps can be taken to prevent disputes in Texas oil and gas projects?

Preventing disputes requires careful planning throughout all phases of oil and gas projects. Comprehensive due diligence on title issues before acquiring interests can identify potential problems early. Clearly drafted contracts with specific terms addressing development obligations and payment structures help minimize ambiguity. Regular communication among all parties creates transparency and builds trust. Accurate record-keeping of operations, costs and production data provides crucial documentation if questions arise. Early intervention when minor disagreements emerge can prevent escalation. Including well-structured dispute resolution provisions in contracts, such as mandatory mediation or arbitration clauses, can provide efficient paths to resolution without costly court proceedings.

How can oil and gas litigation impact the timeline and cost of a project?

Litigation significantly affects both the schedule and budget of projects. Legal disputes frequently cause operational delays as companies hesitate to continue development while ownership or contractual rights remain uncertain. These delays can extend timelines by months or years depending on complexity. Financial impacts include direct legal expenses, which can be substantial in cases requiring technical experts and extensive discovery. Projects face increased carrying costs for leases, equipment and personnel during litigation-related downtime. Companies must adjust budgets for potential liability. Perhaps most significantly, litigation uncertainty can complicate financing arrangements, as lenders typically hesitate to commit funds to projects involved in legal disputes.

What should I do if I am involved in a royalty dispute?

If involved in a royalty dispute, take prompt action. First, gather all relevant documentation, including lease agreements, division orders, royalty statements and correspondence related to payments. Review lease terms regarding royalty calculations, permitted deductions and payment schedules. Consider requesting an audit of production records if your lease permits this action. Consult with an experienced oil and gas attorney who can evaluate your position and potential remedies. In many cases, a well-documented demand letter through your attorney may resolve the issue without court involvement. If informal resolution fails, your attorney can help determine whether litigation or alternative dispute resolution methods would be most appropriate.

What is the rule of capture and correlative rights in oil and gas law?

The rule of capture allows a property owner to extract oil and gas from wells on their property, even if these resources migrate from beneath neighboring lands. This principle encourages development but can lead to competitive drilling that reduces reservoir pressure. Correlative rights evolved as a balancing principle, recognizing that all owners above a common reservoir have rights to a fair opportunity to produce their share of resources. These principles form the foundation for regulations governing well spacing, pooling and unitization requirements. Understanding these concepts is crucial when evaluating potential claims related to drainage, trespass or regulatory compliance.

How are joint operations disputes in oil and gas projects resolved?

Joint operations disputes typically follow a resolution path determined by the governing joint operating agreement (JOA). Most modern JOAs require parties to attempt negotiation or mediation before pursuing formal proceedings. When these initial efforts fail, disputes may proceed to binding arbitration if the agreement includes such provisions. Arbitration often provides a more efficient forum than traditional courts, with arbitrators familiar with industry practices. For disputes proceeding to litigation, courts apply specific remedies outlined in the JOA or general contract principles. Resolution involves accounting procedures, operational records review and technical expert testimony. Successful resolution requires attorneys with an understanding of both legal and technical aspects unique to joint operations.

Addressing Other Texas Energy Law Needs

Although oil and gas is a key industry in West Texas, other aspects of energy development are becoming increasingly important. The services offered at Stubbeman, McRae, Sealy, Laughlin & Browder, Inc., have evolved with these industries. Today, our Texas oil and gas law firm also handles transactions, contracts and litigation related to renewable energy and power, fracking and other new energy developments.

Contact Stubbeman, McRae, Sealy, Laughlin & Browder, Inc., Today

To schedule an initial consultation with our oil and gas attorneys, please contact the firm online or call 432-741-3803.