Louisiana landowners enter contracts with oil and gas companies to allow drilling for these resources. Through these contracts, the landowner receives a percentage of the proceeds generated through the sale of the products created. Unfortunately, select oil and gas companies could commit fraud by providing inaccurate values. When this happens, oil and gas litigation Lawyers in Louisiana step up to protect these landowners.
Leasing Land for Extractions
When the contract starts, the terms are well defined. The oil and gas companies are allowed to use the portion of land designated by the landowner. They aren’t allowed to expand into other areas regardless of what they find in these alternative areas. These companies are responsible for all equipment used and their own workers, which eliminates any liabilities against the landowner.
The contract identifies the exact percentage of the sales the landowner is promised. It also identifies the current price for the gas or oil when it is sold to distributors. The contract is legal and binding and requires the oil company to present a report showing the volume of resources extracted from the property. They also provide sales reports to the landowner showing their profits earned.
The Potential for Personal Injury
At any time that the landowner or their family becomes injured, the oil or gas company is responsible. This includes explosions that could affect any additional portion of the property and lead to injuries of their neighbors.
Safety Hazards for Local Residents
The oil and gas company is also responsible for any safety hazards that emerge during the extraction of the resources. If the resources are leaked onto the property or adjoining properties, the company is responsible for all clean up efforts. If any resident becomes ill due to the spillage, the company must cover all medical expenses incurred.
Louisiana landowners have rights that are enforced under state laws. These rights apply to land use contracts in which oil or gas companies extract resources from the property for commercial use. Landowners who need oil and gas litigation lawyers in Louisiana should browse our website for more information.