Posted by: Kemmy Law Firm
By this point, everyone knows about the trouble brewing within the Texas and New Mexico oil industry. Even those who have never thought about where their fuel comes from has seen news stories about declining oil prices and the industry’s uncertain future.
If you own land in the Permian Basin, what does this mean for you? Those who live on land containing oil and gas reservoirs may wonder if their land still has value and what these industry changes mean.
The oil industry was reasonably stable prior to COVID-19, but with the introduction of the novel coronavirus, the oil market has been completely kneecapped. The Permian Basin oil industry has seen countless layoffs and furloughs, and financial troubles have left families frightened about their futures.
Oil, once considered a solid investment, has declined steadily. Those who own land with oil reservoirs may have once been sitting on a figurative goldmine, but with values currently down, this could change.
Unfortunately, small and independent companies are unlikely to be able to ride things out this time. As smaller companies start exploring bankruptcy protection, this could mean an influx of big oil companies looking to invest, ride out this rough patch, and make bank once the economy bounces back.
As attorneys with a lot of experience dealing with oil and gas companies, we think landowners should brace themselves for potential lowball offers. Even industry giants seen unwilling to make the huge investments they would have made in the past. Because of this, landowners may receive less than they are expecting.
It’s difficult to understand the true value of your land and mineral rights when the industry is in such a state of flux. This is one reason you should consider working with an attorney who can clearly explain you on your oil and gas rights.
A lot of people are currently uncertain about their land’s value and whether selling or holding on is the best option. There are a lot of factors at play, but it starts with knowing your options.
Oil and gas rights are not a new topic in the Permian Basin. Land rights have been the source of countless legal battles, and unfortunately, owners often find themselves on the wrong side of a fight against a company with apparently bottomless pockets.
Before you find yourself in negotiations with a company, you should get fully briefed by local attorney with your best interests in mind.
Without proper preparation, you’re in a position where you can be taken advantage of by large companies that are more than willing to wait you out. It’s fairly common to lease mineral rights, lease land, sell one, or sell both.
It’s all about determining what is best for your long-term plans and what gives you the most financial security. You have power during negotiations, no matter what oil companies tell you.
Before you consider accepting the terms of an agreement, reach out to an oil and gas attorney with specialized experience in the Permian Basin. You are still sitting on a valuable resource, and you deserve to be fairly compensated. They have legal counsel to protect their best interests—you deserve the same.
The team at Kemmy Law Firm is made up of a family of highly-skilled trial lawyers. We are well-versed in the unique needs of landowners in the Permian Basin region, and we’re here to support landowners throughout this challenging and unprecedented period.
Get a free consultation. We do not charge up-front fees, and you owe nothing unless you recover compensation.
When you work with us at Kemmy Law Firm, you are working with a family run firm with more than 50 years of combined experience. We are dedicated and successful trial attorneys practicing in West TX, Hobbs, NM, Midland-Odessa, and across the Permian Basin. Our team handles everything from catastrophic injury claims to complex business matters. We are here to fight for you. We dedicate our time and attention to your case and use every resource available to maximize your claim and obtain the best possible outcome.