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If your oil and gas lease does not include a specific method of dispute resolution and if you cannot resolve your issue with the oil and gas company either by agreement or through mediation, then your recourse is either suit in state court or in federal court. There is, however, another method of dispute resolution; i.e., arbitration; but in order to arbitrate your dispute, your oil and gas lease must include an arbitration clause. It must be remembered that the oil and gas company has deep pockets. Suit in state or federal court cannot only be time consuming, but in addition, it can be very expensive. Whereas if an action is instituted in arbitration, the probabilities are that the issue will be resolved in a more timely manner and the expense will be less. Accordingly, if the oil and gas lease that has been offered to you does not include an arbitration provision, you should negotiate the inclusion of one.

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