Lubbock, Amarillo, Midland, Odessa & Abilene TX Oil & Gas Attorney
The Moster Law Firm offers comprehensive transactional and litigation services in the area of Oil & Gas Law.
Oil & Gas Transactional Services
The Firm is equipped to provide legal counsel at every phase of your Oil & Gas business from the formation and selection of entities, negotiation of partnership and investment agreements, acquisition/sale of assets, and operation whether at the exploration stage or production. Critically, we also bring to the table our legal assets in the area of taxation (state, federal, and international) and Intellectual Property. Whatever your concern whether it is a simple transaction or complex, The Moster Law Firm stands ready to help.
Oil & Gas Litigation Services
Our Litigation Services are extensive and encompass the entire spectrum of disputes which can arise from development to operation to mergers, acquisitions, and sale of your business or discrete assets. Litigation services include the prosecution and defense of royalty disputes, contractual disputes, lease disputes, breach of contract claims, fraud claims, and tort issues, among other areas.
Oil & Gas Title Legal Work
The Firm provides ongoing legal services in this area including title examination.
Oil & Gas Industry Advice
My best advice and recommendation to clients in the Oil & Gas industry is to hedge their bet during down times which always occur. Those of us who have been around long enough (and some gray hair to show for it!), have taken more rides that we care to admit on the cyclical rollercoaster of business. There is a 100% chance that the good times will turn and you need to be ready when that happens. Here are a few tips to consider in building your Oil & Gas safety net.
1. Hedge Your Bet – Start or purchase an existing business in a non-Oil & Gas industry. This is practical and critical advice as it will allow for the generation of continued income during down times in the industry. Given the interdependence of all industries in the Midland Odessa area to Oil & Gas ups and downs, my advice is to purchase a business outside of this area which would be less susceptible to downturns in the local economy. There are many options available but I would focus on a business which has a rapid ROI as is NOT labor intensive. A very good option for my clients is in the area of residential or commercial real estate. The purchase of an apartment complex, for example, will provide recurring income and serve as a buffer in bad economic times. However, like I said above, look way outside the geographic confines of Midland Odessa. A good choice would be the Lubbock economy which continues to grow and is experiencing a rise in income and other financial indicators. BTW – this recommendation is not self-serving as the Moster Law Firm has an office in Midland Odessa in addition to Lubbock!
2. Say “NO” to cross liabilities – This is critical advice in that you do not want to expose your existing Oil & Gas business to the liabilities of an unrelated business such as real estate. In a typical example, let’s say that your Oil Company purchases a retail apartment complex in Lubbock which is doing fabulously. You are thrilled to see the occupancy close to 100% and rent income rolling in. The problem here is that the income from an unrelated business is going into the same pot, your corporate bank account. If your Oil Company gets sued or faces liquidation in an economic downturn, both businesses could go down the drain. The solution is simple and that is to create an entity which legally separates the oil business from the real estate venture. That is not a complicated process at all!
3. Select a Limited Liability Company – The LLC is the preferred choice for new business startups as it is inexpensive to create and exceedingly versatile to operate. For starters, the LLC creates a separate legal entity which is unrelated to the Oil Company and has its own identity. Additionally, unlike most corporations, the LLC does not require substantial legal follow-up work after formation. Finally, LLC’s are not taxed as a business which is a huge advantage!
4. Create LLC Bulwarks – Assuming you do not want to venture forth into a new area of business, you can still hedge your bet within your own Oil Company. I would recommend that certain functions within your business be set up as separate LLC’s so they are protected in the event another part of the business fails. For example, it makes sense to form a separate LLC for your distribution business versus other areas of your Oil & Gas operations. The idea is to create separate areas of value within your company which are less susceptible to a sudden drop in the price of oil.
BOTTOM LINE: You can count on the Oil & Gas industry to have ups and down which are inevitable. Consider some basic business advice and you can weather the storm with relative ease.
The Moster Law Firm is prepared to advise you on any of the issues raised in this article and matters relating to the Oil & Gas industry. Give us a call at (432) 203-6961 and get the justice you deserve!
Texas Oil & Gas Lawyers Serving Lubbock, Amarillo, Midland, Odessa & Abilene
The Moster Law Firm serves the Lubbock, Amarillo, Midland & Odessa Texas area with offices in each location. If you are in Lubbock, Amarillo, Midland or Odessa in west Texas, feel free to contact us for a free evaluation and speak with one of our oil and gas attorneys. Our west Texas oil and gas law firm can help you get the justice you deserve.