There is no set “form” demand letter. A demand letter can be formal or informal, written by an attorney on behalf of a client or written by an individual on his own behalf, demand payment or demand some other action from a party. No matter the form, a demand letter’s purpose is the same – avoid litigation and expedite a resolution of whatever dispute exists between the parties.

This article contains guidelines and tips for drafting an effective demand letter – one that is more likely…

Disclosures During Oil and Gas Lease Negotiations - Texas and Louisiana



The oil and gas industry has always been subject to booms and busts. Barnett Shale and Haynesville Shale lessors are recovering from their first “bust.” Their roller coaster ride started with oil and gas lease terms of $200/acre and a 1/8th royalty, up to $27,200/acre and a 1/4th royalty, and then back down to $500-$5,000/acre and a 1/5th royalty. In some cases, it seemed like the “going rates” changed…

Mineral Estate Surface Use Limitations



Any surface damages discussion must begin with the caveat that the mineral estate is dominant to the surface estate. This means that the mineral owner has the right to use as much of the surface as is reasonably necessary to develop the minerals but must do so with due regard for the rights of surface owners and without negligence. Texas law defers generally to the lessee’s view of reasonableness. To make matters worse for surface owners, the…

Hiring an Attorney – Some Thoughts



By: Eric C. Camp



Here are some things individuals and companies (collectively called “Clients”) should consider when hiring an attorney.



1) Conflicts of Interest



A preliminary issue is whether the professional responsibility rules regarding conflicts of interest prohibit the attorney from representing the prospective Client. These rules generally prevent attorneys from representing Clients in…

WHAT HAPPENS AFTER YOU SIGN YOUR OIL & GAS LEASE?



This article discusses what generally happens from oil and gas lease (“Lease”) signing to royalty check arrival. Every situation is different and these steps may happen in a different order than listed below but all occur before the mineral owner (“Owner”) gets a royalty check. This article is based on Texas law but should be similar to the process in other states.



1) Finding a Surface Site



A surface site…