New Oil Boom in West Texas
Under the surface of at least fifteen West Texas counties—stretching from Reagan and Irion to perhaps as far north as Kent and Stonewall—excitement is bubbling over the new Cline shale, which according to some estimates may be the largest new oil & gas play in North America. As more and more exploration and production companies move into the area to join Devon Energy, Chesapeake Energy, Apache Corporation, Laredo Petroleum, and Japan’s Sumitomo Corporation, mineral interest owners are no doubt dreaming of dollar signs and an early retirement.
To those mineral interest owners…do not let those dreams lead you to make a hasty decision that you might later regret. Bonuses and royalties are the common lease terms that every mineral owner can appreciate. However, the devil is in the details. Oil and gas leases are almost always form documents that do not necessarily protect the mineral owner’s long-term interests. Even if the offered bonus or royalty interest is attractive, you may regret leasing away your minerals without first considering surface protection, horizontal severance, vertical severance, and other issues.
The oil & gas attorneys at The McCleskey Firm have negotiated a multitude of oil & gas leases throughout West Texas and Eastern New Mexico. Not only can we achieve the best results possible for our clients’ short-term financial interests, but the biggest part of our job is to anticipate problems that may arise three, five, ten years—or maybe even generations—down the road.