The Basics of Oil and Gas Law

Oil and natural gas are the liquid and gaseous forms of petroleum. In the majority of countries around the world all mineral resources belong to the government. This includes all valuable rocks, minerals, oil or gas found on or underneath the ground. Individuals or organizations in those nations cannot legally extract and sell any mineral commodity without first obtaining an authorization from the government.
Energy laws govern the utilization and taxation of both renewable and non-renewable energy. In recent times, energy law concentrated mostly on natural gas regulation, but it was expanded to include other areas of energy regulation as time went on. Currently, it also includes legal provisions for oil, gasoline, and extraction taxes.

In the United States and some other countries, ownership of oil and gas resources was originally granted to the individuals or organizations that owned the surface. These property owners had both “surface rights” and rights to the materials below the surface. This sort of complete private ownership is known as a “fee simple estate.”

Fee simple is the most basic type of gas and oil ownership. The fee simple owner has ownership of the surface, the subsurface and the air above a property. The owner also is allowed to sell, lease, gift or bequest these rights individually or entirely to others. Most states have laws that govern the transfer of oil and gas rights from one owner to another. They also have laws that govern mining and drilling activity. These laws vary depending on the state.

Mueller Hillin specializes in Oil and Gas Law in Philadelphia, Atlanta, Houston and Austin.