Implied Covenants in Texas by Texas Oil & Gas Attorneys Hill Law Firm
We are commonly asked about what type of duties producers have to the landowners. While almost the entire relationship between a landowner and producer is governed by the lease agreement, there are also implied covenants or “unstated obligations” that landowners should learn about if they have a lease in place or production on their land. The following are implied covenants in Texas.
- Implied Covenant to Develop Leased Acreage;
- Implied Covenants to Protect Against Drainage;
- Implied Covenant to Market Production; and
- Implied Covenant to Diligently and Properly Operate the Leasehold.
These implied covenants are “unstated obligations” owed to the landower and are typically judged on the basis of what would a reasonably prudent operator have done in the same or similar circumstances. If you have production on your land, have leased land, or plan to lease your property, it is important to take time to learn and understand the law of implied covenants in Texas. If you have any questions or believe a producer is breaching an implied covenant on your property, call the Texas Oil & Gas Attorneys at Hill Law Firm today.