A Comparative Analysis of Texas and New Mexico Oil and Gas Laws from a Title Examiner's Perspective

Abstract

The statutory framework surrounding oil and gas law and the related title issues in Texas and New Mexico, while similar in many instances, do have some notable differences. New Mexico case law is very limited, which could be due to a variety of reasons, including a smaller state population and the fact that New Mexico and the United States own much of New Mexico’s oil and gas productive acreage. Therefore, practitioners often look to other jurisdictions, including Texas, for guidance. Texas’s secondary authority is also better developed with its own adopted title standards. New Mexico does not have such guidance. This Article will focus on the distinctions between the oil and gas laws and the passage of title in Texas and New Mexico from a title examiner’s perspective. Both states do have a regulatory body—the Texas the Railroad Commission (“TXRRC”) and the New Mexico Oil Conservation Division (“NMOCD”)—that oversees oil, gas, and other mineral activities by regulating activities such as well spacing, allowables, and pooling.