Business, money and regulation

How to Select an Oil and Gas Attorney: A Step-by-Step Guide

11 min read

If you own mineral rights, inherited a fractional interest, or own land where a company wants to drill, the first offer you receive may come with a deadline and a lease form already filled in. The attorney you choose will read that form against your interests, and the first selection question is whether the attorney’s practice puts him or her on your side of the table. A deadline in an offer is a reason to start the search quickly, not a reason to skip the questions that decide whom to hire.

Step 1: Identify the Interest You Hold

Oil and gas matters involve different kinds of ownership, and the attorney’s work differs for each.

  • Mineral owner. You own the rights to the oil and gas under a tract, and a company wants to lease them.
  • Heir to a fractional interest. A relative left you a share of mineral rights, and you may not yet have records showing your ownership.
  • Surface owner. You own the land, but someone else may own the minerals, and a company wants to use the surface for drilling, roads, or pipelines.
  • Royalty owner after production. A well is already producing, and you have questions about payments or deductions.

Write down which of these describes you before your first consultation. Ask each attorney: “Which of these clients do you represent most of the time?” Your situation should be part of the attorney’s regular work, not an exception to it.

Step 2: Ask the Conflict Question First

The attorney who reviews your lease should represent you, not the company asking you to sign. Some attorneys and firms that practice oil and gas law represent operators, purchasers, or pipeline companies. That experience can be valuable, because the attorney knows how companies draft and negotiate. It can also create a conflict when your interests and the company’s differ. Before you share details, ask:

  • “Do you or your firm represent the company that sent me this offer, or any company operating in this area?” Ask it before you share the offer itself.
  • “Of your clients in the last few years, what share were mineral or surface owners, and what share were companies?” The split shows which side the practice leans toward.
  • “If a conflict exists, how would you handle it, and will you put the disclosure and my consent in writing?” Asking for writing gives you a record of what was disclosed and agreed.
  • “Do you also represent other owners in the same unit or area?” Representing neighbors can help in negotiation, but the answer shows whether the attorney has considered how their interests might diverge from yours.

Step 3: Confirm What You Own

An offer assumes you own what the company says you own. Before negotiating, the ownership should be confirmed.

Ask each attorney:

  • “How would you confirm my ownership, and what records would you review?” Listen for the county records and the chain of title; the company’s own description of your interest is not a substitute.
  • “If I inherited this interest, what must happen before I can sign a lease or receive payment?” If the person you inherited from has not had an estate administered, a probate or similar proceeding may be needed. Ask, too, whether that proceeding would be handled in-house or referred.
  • “What would a title opinion cover, and what would it cost?” A formal opinion may be inside the engagement or separate, and the quote should say which.
  • “Is my interest a share of the minerals, a share of the royalty only, or something else?” The answer matters because different kinds of interests have different rights, and the attorney should be able to tell you which you hold from the documents.

Bring every deed, will, probate document, division order, and payment statement you have. Ownership questions are decided from documents, and the attorney can only be as precise as the records allow.

Step 4: Test the Offer Against Public Records

You do not have to rely on the company’s description of activity near your tract. State regulators publish records you and your attorney can review.

Texas. The Railroad Commission of Texas lists, among its oil and gas research and statistics, “Drilling Permits Application Query,” “Oil & Gas Production Data,” “Monthly Production by County,” an “Oil & Gas Directory” of operators, an “Oil And Gas Lease Name Index,” and “Oil and Gas Well Records,” including “Well Records – Online” and “Well Records – GIS” (Railroad Commission of Texas, Research and Statistics).

Oklahoma. The Oklahoma Corporation Commission’s Oil and Gas Conservation Division page links to “Pooling Order Information,” “Well Records,” “Location Exception,” “Increased Density,” and “Database Search and Imaged Documents” (Oklahoma Corporation Commission, Oil and Gas).

If your minerals are in another state, ask the attorney which agency keeps similar records there.

For selection, ask: “Before advising me on this offer, would you review recent permits, production, and any pooling filings near my tract, and how would that change your advice?” Records show what activity has been permitted, drilled, or pooled near your land; they do not show what your minerals are worth, which depends on geology and markets. Checking them before advice is given tests the offer against public information, not only the document in front of you.

Step 5: Review the Lease Terms That Change Your Outcome

A lease form is written by the company. The attorney’s job is to identify which terms to change. Rather than accepting a description of terms as “standard,” ask the attorney to explain each of the following in your lease, and what he or she would ask the company to change.

Term Ask the attorney Why it changes your outcome
Royalty fraction and base What fraction is the royalty, and is it calculated before or after gathering, processing, and transportation costs? two leases with the same fraction can pay different amounts depending on the base, so the royalty clause and the deduction language have to be read together
Products covered Does the royalty apply to all products, including gas liquids? a product left out of the clause pays you nothing
Bonus What is the bonus, and is it paid at signing or conditioned on title review or other events? a conditional bonus is not yet money
Primary term and extension How long is the primary term, and what would extend the lease after it? it decides how long your minerals could be tied up
Shut-in and similar clauses Can the lease continue without production, for example through shut-in payments, and on what terms? a lease can be held for years without producing royalties
Pooling and units Can the company combine your tract with others, and on what terms? unit terms decide how production is shared and how much of your land is held
Partial release If only part of your tract is in a producing unit, is the rest released after the primary term? acreage outside the unit can otherwise stay tied up
Depths Does production from one formation hold all depths, or only those producing? it decides whether other depths could be leased separately later

If a company applies to pool your interest: the Oklahoma example

In some states, a regulator can pool unleased interests into a unit. The Oklahoma Corporation Commission describes its process in detail. At the hearing, the Administrative Law Judge “will inquire whether the applicant has made a good faith effort to bargain with the respondents prior to filing the pooling application,” and “will also inquire as to the fair market value of the mineral interests in the unit; that inquiry includes testimony on what was paid for leases in that unit and the eight surrounding units within the last year.” The Commission states that “the unleased mineral owners are always entitled to retain the statutory one-eighth royalty,” and that the fair market value “consists of a cash bonus and royalty” (Oklahoma Corporation Commission, Pooling).

The timing after an order is short. According to the Commission, “the operator must mail copies of the order to each respondent within three days,” and “the order provides Respondents 20 days to either participate in the well or elect to take one of the fair market value alternatives.” Payments of cash consideration “are required to be made within 30 to 35 days of the date of the order,” and the Commission says the order will contain other provisions, “usually requiring the operator establish an escrow account for owners whose addresses are unknown or owners with title problems.” The triggering event for the 20-day election is the order.

For selection, if you receive notice of a pooling application or order, ask: “What alternatives does the order offer, which would you recommend for me, and how many days do I have left to elect?” and “Should we appear at the hearing to present evidence of lease values in the surrounding units?” The answers show whether the attorney knows the Commission’s process and can act within its deadlines. If your minerals are in another state, ask whether that state has a pooling process and what its deadlines are.

The surface

If you own or use the land, three surface questions belong in the review: where the company may place wells, roads, and pipelines, and whether it must consult you first; what it will pay for surface damage, and whether restoration when operations end is a written obligation; and whether the form allows the company to use water from your land or dispose of water on it by default.

Other terms

Three remaining clauses are easy to pass over. A warranty of title is a promise about what you own, so ask what you would be promising and what could follow if your title is not as described. An audit right decides whether you can check the company’s payment calculations later. And the governing-law and forum clauses decide where you would have to go to enforce the lease.

A clause-by-clause review that names which changes matter for you, and which the company may resist, is advice you can act on. Calling the lease “standard” leaves the clauses unreviewed, so ask for the review itself.

Step 6: Know Who Regulates the Operations

Oil and gas operations are regulated by state agencies, and some are also subject to federal programs. One example is the underground injection of fluids. EPA explains that “primary enforcement responsibility, often called primacy, refers to state, territory, or Tribal responsibilities associated with implementing EPA approved UIC programs,” and that “a state, territory, or Tribe with UIC primacy, or primary enforcement responsibility, oversees the UIC program in that state, territory, or Tribe.” It adds that one provision of the Safe Drinking Water Act, section 1425, “applies to Class II wells only” (EPA, UIC Primacy).

For selection, if a disposal or injection well is proposed on or near your land, ask: “Which agency regulates this well in my state, and how could I participate in the permit process?” The regulatory path and the lease are separate, and the answer should cover both.

Step 7: Plan for What Happens After You Sign

The attorney’s work may not end at signing.

  • Division orders. Before paying royalties, a company may send a document stating your share. Ask: “Will you review the division order against the lease, and what should I do if it describes my interest or terms differently?” A division order is something to check against the lease, not sign automatically.
  • Payment statements. Ask: “How would we check that my payments match the lease terms, including deductions?” Some reviews need an accountant or auditor; ask who would do it.
  • Disputes. Ask: “If a payment dispute arises, would you handle it, and how would that be priced?” Your interest may last for decades, so continuity is worth asking about now.

Step 8: Check the License Where the Minerals Lie, and the Experience Behind It

Look up the attorney in the bar directory of the state where your minerals are located. The listing confirms a license there and its status, and nothing about oil and gas work.

For experience, ask how many leases, title reviews, pooling matters, or royalty disputes the attorney handled recently, for which kind of client, and in what role. A firm’s website shows whether it describes work for mineral owners, operators, or both, which you can set beside the conflict answers from Step 2; it does not show who would handle your matter.

Step 9: Read the Fee for Lease Review, Title, and Payments

Ask how each attorney would price the work: hourly, a fixed fee for a defined task such as reviewing one lease, a percentage, or a combination. Then compare by what each proposal covers:

  • Defined work. Does the fee cover review only, or negotiation with the company until signing?
  • Title work. Is a title opinion included or separate?
  • Later work. Are division order review and payment questions included?
  • Percentage arrangements. If the attorney would take a share of the bonus or royalty, of which payments, and for how long?

Ask for the fee terms in writing before work begins.

The Documents, and the Answers That Should Worry You

Bring the offer and lease form with any deadline stated in it; every deed, will, probate document, and prior lease affecting the tract; any division orders and payment statements; a map or legal description of the tract; and notes on how you use the surface. With the same documents in front of each attorney, you can compare which terms each would change.

Before you sign anything, these five should be settled: a conflict check about the company that made the offer; a clause-by-clause review, not a lease called “standard”; questions about how you acquired your interest, especially an inherited one; no signature before ownership is confirmed and the royalty base is understood; and written terms for any percentage fee, including when it ends. Because title and pooling are county- and state-specific, an attorney licensed and practiced where the minerals lie matters more here than where the office is.

Choosing Counsel for Your Mineral Interest

On one sheet per attorney, note: which side his or her practice leans toward and whether any conflict exists; how he or she would confirm your ownership; whether he or she would test the offer against public records; which lease terms he or she would change and why; what happens after signing; and what the fee covers. Then take the lease table back out and mark, for each term, which attorney would change it and why. Where they disagree about a clause, ask each to state its effect in dollars or acres; the clause with the largest stated effect is the one to negotiate first.

Legal disclaimer: This guide provides general information about selecting an oil and gas attorney. It is not legal advice. Laws governing mineral rights vary by state; speak with an attorney licensed where your minerals are located.