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Why Mineral Property Owners Can’t Always Trust Their Tenants

Are you collecting fair royalties from the energy companies leasing your oil and gas rights?Leasing your mineral property in Montgomery County, Texas, was essentially a no-brainer. After all, who would pass up an opportunity to make money by doing nothing but allowing companies to drill on their land? The terms in which you and the tenant agreed upon included your receiving royalties from what was extracted and sold. Unfortunately, you don’t believe you are getting your fair share.

How Tenants Try to Rip Off Royalties

Over the last decade, countless contracts have been signed and tons of money has been made off of acquiring oil and gas wells on landowners’ properties. Unfortunately, those who lease out the land aren’t always getting the royalties they agreed upon, because the tenants employ sneaky tactics to put more money into their pockets, and less into those that actually deserve it.

How do energy companies cheat property owners? Here are two key ways:

  • Landowners don’t understand the contracts. Unfortunately, the prospect of making a lot of money compels landowners to sign contracts without fully understanding what they are agreeing to, which is one of the most common lease negotiation mistakes. As a result, companies put provisions inside contracts that allow them to take money out of what they owe the landowner. Unfortunately, the landowner may not be able to do anything about it because he agreed to it.
  • Deducting expenses. Companies will often take expenses out of what they owe to landowners. Although some deductions may be legitimate, others are excessive and just a way to pay landowners less than what they should receive. Unfortunately, landowners don’t realize what they agreed to until they notice their royalty checks are getting smaller and smaller…and by then, it may be too late.

Don’t Get Taken Advantage Of

If you believe you aren’t getting your fair share of royalties from your mineral lease, the Voss Law Firm wants to help. Set up your appointment to speak to a legal professional about your case by calling 888-614-7730.

If No Recovery No Fee Guarenteed

The Voss Law Firm, P.C. represents clients on a local, national and international basis. We proudly serve companies and individuals along the Gulf Coast and around the globe on a contingency fee basis. Our law firm collects nothing unless we recover on our client's behalf.

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