Natural resources are vital to the economy and to consumers world-wide. However, it is urgent that the rights of property owners are secured whenever these resources are discovered within the private sector. Through contracts that are upheld in court, the property owners acquire a fair price for use of their property and gain a royalty based on the valuation of the resource removed. When leasing companies and extraction firms try to take advantage of these properties it is necessary to seek Gas Royalty Litigation to enforce their rights.
How Do Gas Royalty Arrangements Work?
When oil is discovered within a private property, oil and gas companies can offer a fair selling price to the owner to secure the resource. While the property owner is not required by law to sell, they can make alternative arrangements in which they are leasing the acreage in which the natural resource was found. The way in which these arrangements work is that the oil and gas company has access to the land in question and will pay a royalty to the property owner based on a predetermined valuation per gallon retrieved.
Property owners who sell the property to the gas and oil company may achieve a higher royalty valuation. However, once the property is sold, they can no longer gain access to it and are unable to monitor the quantity of oil that is extracted. This requires alternative measures to be put into play to prevent a denial of royalty payments.
Reviewing Your Contract
When you are approached by a oil and gas company to obtain access to the natural resources supply, you should allow your attorney to review the contract to secure your interests. In most cases, you will receive a percentage of the royalties as they are sold. This valuation is only a fraction of the cost at which the product is sold to consumers. If you wish to remain on the property, you will need to make provisions within the contract to protect your rights. This includes the safety of your family during the extraction process.
To understand your rights within these circumstances, it is advantageous for you to contact an attorney at any time that you are approached by these companies. Gas Royalty Litigation is necessary when your rights are violated. If you need legal assistance, you should contact Edward L White PC Attorney At Law promptly.
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