Landowner Rights in Texas: Negotiating Oil & Gas Leases with Confidence

June 5, 2025

Landowner Rights in Texas: Negotiating Oil & Gas Leases with Confidence

The oil and gas industry continues to be a major driver of the Texas economy, and with it comes the need for landowners to protect their rights and interests. For many Texans, the prospect of leasing land for oil and gas exploration is both exciting and daunting. Understanding the complexities of these agreements is essential to ensuring fair compensation and long-term security.


At Patout, Fontana, and Dellis PLLC, we help landowners across Texas negotiate oil and gas leases with clarity and confidence.


Why Landowners Should Be Informed

Oil and gas leases are legally binding contracts that grant exploration and production rights to energy companies. These leases can affect land use, income, environmental impacts, and more. Without a clear understanding of the terms, landowners risk agreeing to unfavorable provisions that could lead to financial losses or environmental harm.


Key elements that landowners should review in a lease include:

  • Signing Bonus and Royalties: These payments should be clearly defined, with competitive rates and clear timelines.
  • Surface Rights: The lease should specify how the land can be used, including access roads, equipment placement, and restoration after drilling.
  • Duration and Renewal: How long the lease remains active, and conditions for renewal, must be carefully negotiated.
  • Liability and Environmental Considerations: The lease should outline who is responsible for potential damages or spills.


Common Pitfalls in Oil & Gas Leases

Landowners often face pitfalls such as:

  • Overly broad terms that grant extensive access without adequate compensation.
  • Royalties based on complex formulas that reduce actual payments.
  • Vague provisions on surface use, leading to disputes over land restoration or access.


How Legal Counsel Can Help You Navigate the Process

Working with a knowledgeable legal team ensures that landowners:

  • Understand Every Clause: An attorney can explain complicated lease terms in straightforward language.
  • Negotiate Fair Terms: We can help you secure favorable compensation and clear limits on land use.
  • Protect Against Future Disputes: A well-drafted lease minimizes the risk of disagreements and litigation down the road.


At Patout, Fontana, and Dellis PLLC, we work closely with landowners to review and negotiate oil and gas leases that align with their goals. Our commitment is to protect your property rights while ensuring you receive fair value for resource development.


Steps to Negotiating Your Oil & Gas Lease

If you are approached with a lease offer, consider these steps:

  1. Do Not Rush: Take time to review the offer with legal guidance.
  2. Evaluate the Offer: Compare the terms with current market conditions and similar leases in your area.
  3. Negotiate Provisions: Be clear about your expectations for payments, land use, and environmental protection.
  4. Secure Legal Support: Having a trusted legal team ensures your rights are fully protected before signing.



Partner with Patout, Fontana, and Dellis PLLC

Our firm has a long history of representing Texas landowners in oil and gas negotiations. We bring a deep understanding of the laws governing these leases and a commitment to ensuring that landowners feel confident and informed.

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