Oil and gas law concerns the ownership and acquisition rights in gas and oil before and after discovery, and it also handles the adjudication of those rights. Laws on the ownership of US gas and oil differ from those in Europe because the US allows private ownership rather than opting for a government-owned model. In the United States, gas and oil extraction is regulated by the states through common law and statutes, but constitutional and Federal laws also apply. This article explains the ownership of gas and oil rights, and it also explains how an oil and gas litigation lawyer in Louisiana can help protect clients’ rights.
Ownership of Gas and Oil
In the US, gas and oil rights on certain parcels of land may be owned by corporations, individuals, Native American tribes, or government entities. These rights extend downward from property lines; unless they’re clearly separated by deeds, the rights are the property of the landowner. Once separated from land ownership, gas and oil rights can be transferred like any other piece of property.
Offshore Oil Rights
Offshore gas and oil rights are owned by the government and leased to various oil companies for further development. Laws on gas and oil differ depending on the jurisdiction, but laws on ownership before, during and after extraction are universal. A landowner also owns the oil, gas and minerals beneath the land’s surface, unless the rights are sold through an agreement.
Unless the mineral rights are sold, whoever owns land also owns everything beneath it. Gas and oil are fluids; therefore, they may flow directly through property lines. Operators can legally pull gas and oil from beneath another person’s land if extraction is conducted legally from the landowner’s own property. However, an operator may not angle an oil well to penetrate property that they do not own.
Correlative Rights and the Capture Rule: How They Affect Oil Ownership
Both correlative rights and capture rules cover the extraction of gas and oil, but these legal doctrines are in direct conflict with one another. Which doctrine applies in a certain case depends on the laws of the state, which can vary considerably. Federal law applies in cases involving offshore extraction of gas and oil. If a landowner has questions about ownership rights, they should Contact Business Name, oil and gas litigation lawyers in Louisiana who can dispense specific legal advice.
