Nixon Daughtrey

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Probate & Estate Planning

Avoid Probate: Secure Your Rural Property with Proper Planning

Estate planning is a critical step for rural property owners. If you own farmland, ranchland, or land with mineral rights, planning ahead matters more than ever. These properties are often valuable and can be complex to transfer. Without the right legal documents, your family might face delays and disagreements. A strong will or trust helps protect your land, your legacy, and your loved ones. In This Article: Why Estate Planning Matters for Rural Landowners Keeping Land in the Family Preventing Family Disagreements Saving Money on Taxes and Fees Understanding Wills for Rural Property What a Will Can Do Requirements for a Valid Will in Texas Limits of Using a Will Alone Trusts as a Flexible Estate Planning Tool Revocable and Irrevocable Trusts How Trusts Avoid Probate Protection from Legal Claims Types of Trusts Used for Landowners Living Trusts Testamentary Trusts Land Trusts Special Use or Conservation Trusts Transferring Property Into

Nixon Daughtrey April 4, 2025

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Oil & Gas

Unlock Land Potential: Texas Retained Acreage Clause

Oil and gas leases are important legal tools for managing land with mineral potential. Landowners often want to make sure these leases are fair and productive. A common concern is making sure land is not tied up without benefit. This is where retained acreage clauses become very useful. These clauses ensure that only parts of the land that are actually producing remain under lease. In This Article: What Is a Retained Acreage Clause? Understanding the Clause Legal Basics in Texas Why Retained Acreage Clauses Matter for Landowners Stopping Unused Land from Being Tied Up Better Use of Mineral Resources Keeping Royalty Checks Coming How Retained Acreage Clauses Work The Clause in Action The Role of Proration Units Other Key Lease Terms to Know How Depth Severance Helps Events That Trigger Clause Use Mandatory Release Clauses Important Tips When Negotiating a Lease Define the Important Words Clearly Limit the Land Held

Nixon Daughtrey March 31, 2025

Real Estate for Buyers

New HUD FHA Rule Shuts Out Immigrant Buyers

You found rural Texas land from out of state, and a government-backed loan looks like the affordable way in. A USDA, FHA, or VA loan promises low money down and friendly terms. From a distance, it feels like the financing is the easy part. So the land itself gets far less attention than it deserves. Here is what surprises many buyers. With these loans, the property has to qualify, not just you. So a tract you love can pass your credit check and still be turned down because of the land itself. This guide is for the out-of-state buyer, not the seller or the lender. Let us look at what can disqualify rural Texas land, and why those same issues should concern you anyway, in plain terms. In This Article: Why Government-Backed Loans Are Common on Rural Land The Property Has to Qualify, Not Just You What Can Disqualify Rural

Nixon Daughtrey March 27, 2025

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Oil & Gas

Secure Texas Land: How to Deal with Orphan Well Risks

If you own land in Texas, you might have an abandoned oil or gas well on your property without realizing it. These wells, called orphan wells, can create serious problems for landowners. They often leak harmful substances, reduce land value, and lead to legal responsibilities. Knowing how to identify, report, and handle these wells is crucial. Protecting your property and understanding your rights will help you avoid costly issues in the future. In This Article: What Is an Orphan Well? How Do Orphan Wells End Up on Private Land? Why Orphan Wells Are a Problem for Landowners Environmental Risks Financial Risks Legal Confusion Signs You Might Have an Orphan Well on Your Property What the Railroad Commission of Texas (RRC) Is Doing Who Is Responsible for Plugging the Well? How to Report or Confirm an Orphan Well How Orphan Wells Affect Water and Soil Groundwater Contamination Soil Contamination What Happens

Nixon Daughtrey March 24, 2025

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Real Estate for Landowners

A Clear, Step-by-Step Guide to the Texas Farm and Ranch Contract

Buying or selling a farm or ranch in Texas is more than just a handshake and a price tag. It needs a good understanding of the Texas Farm and Ranch Contract. The Texas Real Estate Commission (TREC) created this important document. It guides rural property transactions. It ensures transparency and protects the interests of both buyers and sellers. The contract covers many important topics. These include the sale of land, improvements, and accessories. It also mentions exclusions like mineral rights and water access. For many people, understanding complex clauses can be hard. This includes things like oil and gas lease addendums or natural resource reservations. However, these details are crucial to avoid disputes and safeguard your investment. In This Article: Introduction Key Parties and Definitions Property Components Land, Improvements, and Crops Exclusions and Reservations Sales Price and Financing Leases and Reservations Earnest Money and Option Period Title Policy and Survey

Nixon Daughtrey March 17, 2025

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Oil & Gas

Pooling vs. Unitization in Texas: What Landowners Must Know

Pooling and unitization agreements play a crucial role in Texas oil and gas production. These agreements let landowners and energy companies work together to ensure efficient resource extraction. Since oil and gas reservoirs do not follow property lines, pooling helps combine smaller land tracts into a single drilling unit. Unitization takes it a step further by treating an entire reservoir as one unit for maximum efficiency. Landowners should understand these agreements to protect their financial interests and property rights. In This Article: What Is Pooling in Texas Oil and Gas Development? Definition and Purpose of Pooling Advantages of Pooling for Landowners Legal Framework Governing Pooling Agreements Understanding Unitization in Texas Oil and Gas What Is Unitization? Key Differences Between Pooling and Unitization Benefits of Unitization Legal Considerations in Pooling Agreements Common Pooling Structures Royalty Apportionment in Pooling Agreements Cautions for Landowners Considering Pooling or Unitization Forced Pooling Risks Key Lease

Nixon Daughtrey March 10, 2025

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Case Studies

Securing Mineral Rights: How We Helped Recover Lost Royalties

Executive Summary A limited liability company (LLC) in Utah owns the mineral rights to a valuable oil property. This property is now at the center of a big royalty dispute. This conflict arose due to ambiguous land titles and instances of unauthorized oil extraction. Compounding the issue, a major oil company commenced drilling operations on the property without securing a valid lease agreement. This action broke oil and gas laws. It also led to the LLC not receiving its rightful royalty payments. The situation highlights the complexities of owning mineral rights. It also shows how important clear legal agreements are in the oil industry. Through strategic legal intervention, we:✅ Resolved complex title issues, establishing clear mineral ownership.✅ Secured a lump-sum settlement, recovering all unpaid oil royalties.✅ Negotiated a strong lease agreement, ensuring fair compensation and protecting future payments. This case highlights the critical role of oil and gas attorneys in

Nixon Daughtrey March 4, 2025

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Closings & Title

The Special Warranty Deed in Your Mineral Chain: What It Does Not Cover

The deed looked fine. It conveyed the minerals, it was signed and notarized, and it was recorded in the right county. The new owner assumed the title question was settled. Then the operator issued a division order, and the payments did not start. A title examiner had found a gap further back in the chain, and the special warranty deed in hand did nothing to close it. The company wanted curative work before it would pay. This is where the special warranty deed quietly fails mineral owners. It is one of the most common deeds in Texas mineral conveyances, and one of the most misunderstood. The deed is not the problem; what it leaves uncovered is, and that is exactly where mineral title tends to break. In This Article: What a Special Warranty Deed Actually Promises Why the Gap Is Worse for Minerals Than for Surface The Title Insurance Assumption

Nixon Daughtrey March 3, 2025

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Mineral Rights For Landowners

Texas Supreme Court Rulings That Protect Mineral Rights Owners

Mineral rights in Texas are a valuable asset for many landowners. Owning mineral rights gives the holder the ability to lease or sell them for oil and gas extraction. However, the legal landscape surrounding mineral rights can be complex. Many landowners encounter disputes over deductions, lease terms, and royalty payments. Understanding key Texas Supreme Court rulings can help mineral owners protect their rights and avoid financial losses. In This Article: Key Texas Supreme Court Cases Affecting Mineral Owners Heritage Resources v. NationsBank (1996) Chesapeake Exploration v. Hyder (2016) Burlington Resources v. Texas Crude Energy (2019) Bluestone Natural Resources v. Randle (2021) Implications for Mineral Owners Understanding Deduction Clauses and Royalty Assignments Importance of Explicit Lease Terms Laws and Regulations Affecting Mineral Rights Federal Regulations Impacting Mineral Rights Mineral Leasing Act (1920) FERC Order 636 (1992) Texas Legislation and Regulations Railroad Commission of Texas Rules Texas Natural Resources Code § 91.401-91.406

Nixon Daughtrey February 24, 2025

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Oil & Gas

Post-Production Cost Guide : Fair Mineral Royalties in Texas

Many mineral owners eagerly await royalty payments from their oil and gas leases. However, the amount they receive is often lower than expected. This shortfall is usually due to post-production costs deducted by oil and gas companies. These costs cover transportation, processing, and marketing expenses that occur after extraction. Understanding these deductions is essential for landowners who want to protect their earnings. In This Article: What Are Post-Production Costs? Common Types of Post-Production Costs The Legal Framework on Post-Production Costs Federal Laws Affecting Post-Production Costs Texas Laws Governing Royalty Deductions How Mineral Owners Can Protect Themselves Key Steps to Protect Royalty Payments How Lease Agreements Impact Post-Production Costs Types of Lease Agreements What Are Post-Production Costs? Post-production costs refer to expenses incurred after crude oil or natural gas has been removed from the ground. These costs are deducted before calculating the royalties owed to mineral owners. Depending on the lease

Nixon Daughtrey February 17, 2025

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