California Oil and Gas Law Blog

When disputes arise in any industry, many different problems may surface, and this is especially true in the world of oil and gas. These disputes can become more complicated and frustrating as time passes, which is one reason why oil and gas companies faced with a dispute should try to handle these disagreements in a timely manner. Not to mention, these disagreements can be very difficult in terms of time, money and energy. Finding a favorable resolution as soon as possible is very important and can help minimize the damage of a dispute.

There are a number of ways in which oil and gas company owners may be able to resolve these disputes in a more timely fashion. For starters, if they are able to communicate with the parties involved, this can get rid of confusion and lead to a more amicable experience. Moreover, oil and gas company owners should carefully explore their rights as well as the legal strategies that may work best. Having a good understanding of which steps to take when handling a dispute, especially if it ends up in the courtroom, can expedite the process.

At its core, negotiating a California oil and gas lease is about protecting your best interests, so the more you understand about the process and your rights as an individual with mineral interests, the more favorable your lease negotiations will likely be. At Ehrlich • Pledger Law, LLP, we have considerable experience helping clients navigate complex oil and gas issues, and we have helped many of them work through complicated lease negotiations and find solutions that best accommodate their needs.

According to SmallBusiness.Chron.com, one of the first things you should do during oil and gas lease negotiations is make sure you have a solid and comprehensive understanding of everything outlined in the lease. It will generally serve you well for the lease to be highly specific in terms of what a company can extract from your land. You also need to understand exactly where and how a company plans to drill, as well as what its rights are when it comes to any water found on your land during the drilling process.

The oil and gas industry, like many other industries in the United States, is a fine balance between production and overproduction. The risk of oversupply can affect the stability of many oil producers in California as well as across the country. With the importation of oil and gas from other countries, it is critical to keep an eye on local oil companies and how this can affect their ability to survive. 

Although the market is expected to be volatile in price and production, experts are seeing a trend that local U.S. producers will be able to overcome any challenges this may bring. A contract between the U.S., the Organization of the Petroleum Exporting Countries and Russia says that limited supplies will be sent to the U.S. from these foreign regions. This will give local industries a better chance to control prices and will reduce the threat of oversupply in the U.S. 

If you are considering whether or not to sell some of your mineral royalties in California, chances are you are going to want to find a buyer who will respect the value of your assets. At Erhlich Pledger Law, LLP, we have considerable experience helping people to make strategic decisions when they are working with oil and gas transactions. 

As with anything, there are more appropriate times than others to consider selling your royalties to someone else. Deciding when to begin soliciting your royalties is a matter of how much you wish to get for them, the condition of the market, the appeal of the royalties you are selling and how willing you are to spend time finding an ideal buyer.