Fayetteville Law Firm | Booneville Law Firm

Oil and Gas Law

Oil and Gas Law

Oil and gas law is highly specialized and requires a vast knowledge of  property rights, real estate law, contractual law and regulatory law. Danielson Law Firm is very experienced in navigating to complexities of oil and gas legislation in Texas, Arkansas, and Oklahoma. We are here to cut through the red tape and to protect your best interests.

What Is an Oil and Gas Lease?

The core of any oil and gas development begins with the Oil & Gas Lease.

An Oil and Gas Lease is the document wherein the owner of the mineral rights (Lessor) conveys the exclusive right to explore for and develop the mineral resources to the Lessee.  Usually a larger exploration and production company with the knowledge, skill, finances and experience to successfully drill and complete commercially productive oil and gas wells. 

Before entering into any such agreement, a mineral owner should have a good understanding of the various provisions of any Oil and Gas Lease to make sure that they are not taken advantage of by more sophisticated oil and gas companies or their Lease porkers or landmen. 

Oil and Gas Development in Texas

Because the going rates for lease bonus payments and royalty rates can vary greatly from one area to another, it’s important to know the market rates in each area of development. For example, you are likely to receive a much more lucrative lease bonus payment and royalty rate in the Permian Basin in Texas as opposed to other areas of the country such as the Arkoma Basin in Oklahoma or the Fayetteville Shale in Arkansas.

What Are the Risks when Investing in Oil and Gas?

Investing in oil and gas projects and or ancillary services involves many risks. The biggest headaches developers face are extremely complicated contracts, agreements and regulatory compliance. 

Each state has its own commission, regulatory body or administrative agency for oil and gas law. This agency oversees all areas of exploration and production of oil and gas in their jurisdictions along with environmental oversight. 

For operators of Oil and Gas Properties, along with their non-operating working interest partners, it is extremely important to understand the state-specific laws, agreements, joint operating agreements, and regulatory schemes in each state. 

Retaining an expert with knowledge and experience in each state’s permitting process and administrative procedures will help prevent unnecessary, costly delays.

Contact Danielson Law Firm about Oil and Gas help. 

Challenges with Lease Payments

Often, payments owed under an Oil and Gas Lease are suspended and the rightful owner’s payments are suspended for a title or other issue.

This can occur when an owner of mineral interests passes away and their heirs simply do not know to contact the oil and gas company obligated to make these payments or by not providing an updated address to the companies when one moves. 

When this happens, the companies simply hold the true owner’s payments in a suspense account until provided with very specific documentation.  When this happens, it is often necessary to hire a professional to assist in dealing with the companies so that the funds can be released.    


Get the legal help you need. Contact Danielson Law Firm, PLLC today!



Fayetteville Law Office

(479) 935-8313

909 Rolling Hills Dr.
Fayetteville, AR 72703

Booneville Law Office

(479) 935-8060

4 Village Loop
Booneville, AR 72927

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