Oil and gas companies often secure leases from property owners with no immediate plans to erect a well or begin mineral extraction on their property. However, increased demand and other factors may lead to a decision to begin extraction efforts at a property that previously did not see any drilling.
Property owners who expect their leases to be a source of passive income are sometimes resistant to news of drilling and well operations, despite having theoretically agreed to those exact activities when signing a lease. They may fight at every stage of well development.
How much advance notice does an oil and gas company need to provide before preparing for extraction efforts?
The law does not mandate notice
Many of the obligations that oil and gas companies have to landowners who sign leases stem not from the law but rather from lease paperwork. Currently, neither federal regulations nor state law in Texas overtly demand a specific amount of advance notice before drilling can take place on private property subject to a mineral lease.
Any notice requirements may come from contractual promises made to the property owner. Most oil and gas companies do not restrict their own operation by giving property owners the contractual right to weeks of notice and an opportunity to dispute the proposed drilling activities. Even so, providing written notice can limit the likelihood of the owner interfering with operations, possibly by denying access to the property.
Communication with property owners about changes in how an oil and gas company utilizes leased property can largely limit opportunities for conflict and litigation. Notifying an owner in writing of impending extraction activities can give them time to review the lease, learn about their rights and adjust to the idea of drilling and other commercial activities on their property.