As Louisiana Gas Leases Increase, Know How to Protect Your Rights
Posted On behalf of Simien & Simien on Jun 17, 2015 in Oil And Gas
June saw the highest sales of gas and oil drilling rights in Louisiana since October 2013. Eight leases were sold in June totaling over $3 million for around 800 acres of land in northern Louisiana. Only two companies participated in the lease sale, with Delta Title & Land, LLC purchasing all but six acres in the sale.
With such an increase in interest in natural gas and oil exploration, landowners need to be aware of their rights.
If you recently signed an oil or gas lease and have become the victim of a negligent oil or gas company, contact us for a free review of your claim. Our team of attorneys have experience handling oilfield contamination and damages claims.
Call (800) 374-8422.
What Is A Minerals Lease?
If an exploration company believes that a piece of property has valuable minerals under it, they can put together a lease and bid on the rights to mine for that mineral on a property that they do not own. This lease pays the landowner for the mineral rights and provides the owner with royalties based on what is removed from the land.
A land lease generally lasts for 10 years. After that period of time, the mining company must stop production or renew the lease. The landowner will retain full ownership of the property during this period.
What Can Go Wrong?
There are several issues that could occur when oil and gas leases have been issued. Companies that are mining the property may not abide by the terms of their contract, the property may become severely damaged, or royalties or other monies due may not be issued. There are several other issues that could also arise when a mineral lease is granted.
The Louisiana laws regarding mineral rights and leases can be very complicated. There are several laws for each type of mining procedure, each type of company that may be performing the mining, and even laws regarding the type of land being used. If a landowner believes that the mining operation is not honoring its contract, it would be wise to seek the assistance of an oil and gas lease attorney.
How We Can Help
The environmental damage lawyers at Simien & Simien are dedicated to fighting on behalf of those who have been wronged by oil and gas companies in Louisiana. Our team will hire investigators, analysts and professionals well-versed in oil and gas law in order to build a strong case in your favor.
We offer free legal consultations and can help you determine what your legal options are if you have signed an oil or gas lease.