Oil, Gas, and Investments

Oil and Gas Operating Agreements

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For over a century, Texas has been the oil and gas capital of the United States: from Spindletop to the Permian Basin, energy has been and will always be the lifeblood of the Texan economy. Operating agreements are the heart of this system – and like the heart, they’re a complex structure that should be handled with extreme case. These agreements must balance surface and water use; procedures for producing, storing, and transporting minerals; and distributing royalties and fees among dozens or even hundreds of royalty and working interest holders. Yet many attorneys, mineral owners, and smaller operators simply ‘sign on the dotted line’ and accept pre-drafted contracts, giving up a century of hard-earned rights – sometimes thinking that they’ve been too tough.

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We do things differently. Whether representing a royalty owner, operator, or contractor, we custom-tailor each agreement to fit the specific investment before us – whether it’s a traditional vertical well, a horizontal fracking well, or a saltwater disposal well. We work to ensure that our clients keep the right of removal or termination, to ensure that when disputes arise, our clients always have the option to walk away. We take a stand on financial transparency, so that owners and operators alike know exactly where they stand. And we’re ready and willing to fight for these rights – because a contract that isn’t enforced is just an expensive sheet of paper.

 

Securities Fraud

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The ability to raise private capital by issuing exempt securities is attractive, and unfortunately some bad actors misuse that power. Unscrupulous promoters are always on the hunt to fleece new investors, hiring salesmen and hosting paper-thin ‘educational’ sessions to identify potential victims in defiance of the securities laws. These operators will stop at nothing to separate investors from their hard-earned savings: omitting an investment’s risks, withholding information about investment performance, hiring affiliates to perform ‘services’ for the investment, and ensuring they are paid first in good times and bad alike. When confronted, these snake-oil salesmen will offer up a variety of excuses to avoid repaying their investors – most commonly by claiming that the investment simply went bad, but sometimes by claiming they owed no fiduciary duties. The boldest even blame the investor, claiming that the investor “knew the risks” and promised in their investment documents that they understood everything – including the facts the promoter deliberately hid.

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The Spencer Law Firm has ample experience in helping defrauded investors obtain justice, both in the regulatory arena and in the courtroom. We have the business background to know the difference between a bad investment and a fraudulent scheme. We have the securities knowledge to know when securities exemptions actually apply – and when an investment contract is twisting the law or outright lying. We have the litigation experience to bring con artists to bear, and nail down self-justifying operators who try to shift the blame.