Are you disgruntled about your oil or gas investments? Then you need a lawyer to help you understand your options. Investing in the oil or gas industries is aggressive and risky because of how the industry runs. As a result, conflicts over investments are common. Your lawyer can review the specifics of your investments so that you can take full advantage of the dispute resolution options.
Oil and Gas Ventures in Texas
There’s a reason that so many people want to invest in the oil and gas industries in Texas. They can yield enormous profits for investors. The downside, however, is that oil and gas ventures are extremely risky, costly up front, and require investments to make a profit. Companies know that oil and gas investments have their risks. Industries like this naturally involve royalty disputes, misappropriation of assets, and even fraudulent activities. Unfortunately, some bad actors may attempt to take advantage of investors. If you have been wronged in an investment dispute or see a conflict coming, talk to an oil & gas lawyer.
Possible Legal Conflicts Involving Oil and Gas Investments
While most oil and gas companies are reputable, you still run the risk that your investment will end in legal conflict. These companies are always seeking profit, knowing that the oil and gas industries can be extremely lucrative for the right people. The quest for profit can lead some to act unethically or breach a legal obligation. As a result, clients and investors may lose out.
Common oil and gas legal conflicts could include:
- Breach of contract
- Underpayment of royalties
- Failing to pay royalties due
- Self-dealing in making oil and gas deals
- Purposefully incorrect measurements of materials
- Fraudulently entering into contracts
Underpayment or non-payment of royalties alone can lead to a legal dispute. If you are a landowner and agreed to an oil or gas venture on your land, you likely are entitled to a share of the royalties from the oil or gas production. If you haven’t received these royalties or think they seem low, consult a lawyer to learn about your options.
Protecting Yourself When Making Oil and Gas Investments
You can take a few key steps to protect yourself before agreeing to any oil or gas investments. First, take care to investigate any investment opportunities you are offered. Repeated cold calls or limited-time offers could be signs of shady dealings. For any company in which you are considering investing, you should ensure that it has documented oil and gas experience. You can check to see if the name under which it is operating is the same as a company name listed on the Securities and Exchange Commission registry. Also, you can request a copy of the “due diligence” report. This is a report prepared by a registered broker recommending an oil or gas investment. Finally, the SEC’s helpful Investor Alert linked here lists additional safeguard measures you can take when deciding whether to make an oil or gas investment.
When Oil and Gas Investments Go Wrong – Hire a Lawyer
If your oil or gas investment hasn’t worked out like you thought it would, you may need a lawyer. For example, if you believe that you are owed royalties or you think the company has breached your contract, a lawyer can assist. Your contract with the oil or gas company may provide you with remedies such as arbitration or going to court. These remedies can help you resolve the dispute. If you are dealing with fraud or misrepresentation involving your investment, your lawyer can evaluate and explain your options for receiving damages or recouping the investment. It all starts with an oil and gas law firm consultation.
Let Henke & Williams Help
As experienced Houston oil & gas lawyers, we help our clients find the best solution possible when their investments go wrong. Our advice is not “one-size-fits-all,” but is tailored to your unique situation. We have experience with oil & gas disputes, and we are here to help you seek your best outcome. To set up a consultation, call 713-940-4500 or use our convenient Contact Form.