A Primer on Oil and Gas Law
Oil and Gas law is a legal practice that has grown in importance as the oil business has grown in Houston. Law firms have played a big role in developing different areas of oil and gas law and providing focused representation to different players in the industry. The types of cases include transactions, contracts, real estate and permitting. An important note on the industry is that in the recent markets that have affected oil and gas prices, the industry has remained active in the areas of oil field service contracts, oil field management contracts and other types of support service contracts.
The oil business frequently intersects directly with real estate. With hard mineral rights ownership – a common form of doing business in Texas – the ownership laws and regulations affect surface rights , subsurface rights and yield legal construction that must result in oil and gas interests transactions. Important areas of practice that are common to these types of legal issues include: Once again, the current economic climate has continued to keep these areas of practice busy. The Houston law firm of IPG Dallas recently published an article that outlines the difficulties that the drilling and procurement industries have faced in this sector in the last year – but that they also continue to operate and adapt to market pressures. This is part of a bigger industry trend across Houston that shows how important upper echelon oil and gas law practices have remained in the face of economic downturns.
How Oil and Gas Law Firms Can Help You
In Houston, there are a variety of services offered by oil and gas law firms. First and foremost, these firms often have extensive experience in contract negotiations, land services, and asset transactions. These trio of services form the bedrock of transactional work in the oil and gas sector, and for many firms, are core competency areas. We will further explore the details of these services in later sections.
Another very important area for the Houston oil and gas bar is regulatory compliance. There are an astonishing number of statutes and regulations governing almost every conceivable aspect of oil and gas activity. Houston law firms are often engaged to ensure that their clients are in full compliance with state and federal regulations alike. Whether it’s licensing, reporting, or even state royalty payments, Houston lawyers make sure that their clients stay compliant.
Enforcement and litigation complement regulatory compliance services. If a state regulatory body performs an inspection or audit and finds a potential violation or area of non-compliance, the potential for enforcement proceedings is very significant and potentially costly. If a lawsuit is brought, a Houston attorney can assist in defending the company’s interest in any subsequent litigation or administrative proceeding.
Finally, there are several areas of oil and gas regulation and transactional law that involve adherence to environmental laws. Houston oil and gas firms have attorneys focused solely on this area of practice, ensuring that clients are compliant with local, state, and federal environmental regulations.
Leading Oil and Gas Law Firms
Top Oil and Gas Law Firms in Houston: What You Need to Know
Jackson Walker
With 13 offices in Texas, Arizona, California, Georgia, Mexico, and France, Jackson Walker concentrates on providing full-service representation to their clients. In particular, the firm has had notable success in oil and gas matters, where their complex transactional and litigation teams have for years assisted clients in large scale projects and novel claims.
Bracewell
Originally founded in 1945, Bracewell has become one of the state’s largest law firms, and in 2018 was listed among the AM Law 100 (the nation’s 100 largest law firms). Bracewell serves primarily corporate clients, providing full-service, high-stakes legal assistance. Among its specialty areas is oil and gas law. Indeed, the firm’s Oil and Gas practice has been recognized as among the nation’s leading practices by a variety of legal outlets, including U.S. News & World Report, Legal 500 U.S., and Texas Super Lawyers.
Holland & Knight
Under their motto, "Your Company’s greatest Asset . . . is its Ability to React," Holland & Knight was founded specifically to provide full-service legal support to corporate clients in Texas and Florida. The firm has expanded significantly in recent years, and now operates 29 offices internationally. It has likewise expanded its core list of legal specialties, which now includes appellate law, white collar defense and investigations, corporate law, and energy law. Recognizing the metamorphosis of the oil and gas industry in recent years, in particular with it becoming a more international player, Holland & Knight has recently expanded its oil and gas practice into Latin America and the Mediterranean.
Kirkland & Ellis
In 1978, Kirkland & Ellis began its business with only a few lawyers in Houston and Chicago. Today, the firm has grown to be one of the largest in the nation. It operates 15 offices worldwide, and provides full-service corporate representation. The firm has made a name for itself in the field of oil and gas law, and has developed a reputation for being a leading, international oil and gas law firm. Kirkland & Ellis in particular focuses on providing legal assistance related to capital markets, intellectual property, mergers and acquisitions, and public offerings.
Determining the Right Firm for You
When selecting the right firm among the top oil and gas law firms in Houston, several factors should come into play. Start with a thorough evaluation of each firm’s expertise. To begin the process, you should compile a list of these law firms and check their records. The ideal scenario is finding a firm with positive feedback from previous clients. You can also visit each potential law firm’s site to learn about its oil and gas team.
The firm’s reputation is imperative in the selection process. Conflicts of interest can arise when a firm has experience with one party in the oil and gas business, and a law firm with a strong reputation would usually have no such affiliations that would put the firm at a disadvantage in the case being pursued.
One way to determine the reputation of a law firm is to ask the previous clients whether they were satisfied . Also, make sure to check the firm’s win-loss record. If the oil and gas law firms in Houston you are considering are well regarded, you should have a good chance of winning your case if you pick the firm.
Another factor to consider is the level of personal service provided by a particular law firm. It is important that the lawyers involved in your case take the time to understand the scope of your legal needs and provide quality representation. Personal service includes a close examination of the details involved in the case, close communication, and various other conveniences that you should expect. It is critical to remember that the level and quality of service provided will greatly impact the outcome of the case and you should always opt for the top-notch service of a top Houston firm.
Obstacles for Oil and Gas Law Firms
The oil and gas sector is one of the cornerstones of the global economy, and Houston law firms working in this area face a number of complex issues. The energy market is one of the most cyclical industries in the world, demanding that firms representing clients in the gas and energy sector be adept at managing the volatility that often characterizes this market. Those who can navigate the legal issues that arise as a result experience greater success. Contingent liability is a particularly prominent issue that many firms encounter when representing clients for which they represent large-scale transactional issues. It is not uncommon for clients to incorrectly guess the number of transactional issues that will arise as a result of a natural gas deal or an oil merger. The good news is that Houston business transaction firms often have more experience with large scale transactions than any other segment of the market. Other issues that Houston oil and gas law firms must contend with are environmental concerns and the often-times extensive regulatory framework that goes along with nearly every large scale deal. Environmental regulations can also impact the permitting process, leases and contracts, leading to potential costly delays. Oil and gas firms can help clients navigate environmental assessment and compliance requirements, which are components of most oil and gas agreements. Environmental concerns can influence siting, permitting and construction processes.
The Evolution of Oil and Gas Law in Houston
The world of oil and gas law in Houston is at an interesting crossroads. Amid all the current legal battles surrounding the litigation enforcements and settlements, there remains a palpable shift in ethos within the industry that is affecting oil and gas law practices such as litigation, merger litigations, settlements, and other integral aspects of legal practice.
The move towards sustainability and alternative energies continues to push the oil and gas industry away for its traditional methods towards a more innovative future. This trend is not just manifested in new technologies or environmental concerns, however, it also sees the legal profession evolving to accommodate these factors as well.
The legal outlook in Houston for oil and gas law will be driven by the renewable energy market. As these companies employ innovative technologies to compete against oil and gas companies , the associated litigation can be expected to increase. Whether it is companies facing off in court over methods of extraction or software patent infringement, oil and gas law firms will need to evolve to meet demand.
The court systems will also require significant adjustments as litigation will likely occur more frequently in relation to oil and gas law. The final outcome for these types of cases is not yet clear, but as the industry moves towards a more sustainable future, Houston looks to be at the heart of oil and gas law litigation from the demand of the industry. Houston law firms will need to be on the cutting edge of technology and legal proceedings to remain a relevant hub for oil and gas companies.