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SpaceX Is Battling A Texas Oil Company For Drilling Rights

by : Daniel Richardson on : 25 Jan 2021 15:33
SpaceX Is Battling A Texas Oil Company For Drilling RightsPA/ENSCO

SpaceX and Dallas Petroleum Group (DPG) are in a legal battle over 806 acres of land in Texas. The land is reportedly rich in natural gas.

Elon Musk made a point of moving to Texas after complaining that California had ‘too much influence’ on the world.

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It now seems that the entrepreneur has run into some issues in his new home as well; a dispute about who owns 806 acres of land beside SpaceX’s Starship facilities is beginning legal proceedings.

Elon MuskPA Images

SpaceX subsidiary, Lone Star Mineral Development LLC, has filed a claim that demands Dallas Petroleum Group (DPG) LLC removes itself from the methane-rich land.

The legal filing claims that DPG has ‘illegally trespassed and installed a lock on the entry gate to prevent Lone Star’s access.’ Naturally, if a case finds that the land still belongs to DPG, then the issues of trespassing and preventing entry will not be an issue.

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It may seem odd that two large companies would dispute the land, but it appears that the issue has occurred because of their respective leases. Mesquite Energy Inc. leased out the land to SpaceX in June 2020, but DPG claims it still has the rights to access the wells on the same plot of land. While this may appear to be something that the owner of the lease could clear up, there may be legal loopholes that need to be clarified by a judge.

SpaceX StarshipPA Images

It appears that the baring of SpaceX from the property may have been a rash escalation on the back of tension, as the space-company has a right to access the land. However, at the moment neither legal teams have clarified their legal position beyond the filings.

There could be several months before a ruling is made, and with that in mind, the two companies may have to arrange some kind of agreement while the verdict is considered. This may lead to some issues, but given the size of the land, there may be an amicable solution for both parties.

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The land and area are clearly important to SpaceX, as it is intended to enable regular orbit missions. Alongside acquiring a lease to this land, the company has also been in discussions to purchase houses in the Boca Chica community to create the right area for its launches. With this in mind, SpaceX may have other avenues to explore if the case does not settle in its favour.

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Daniel Richardson

After graduating from university, Dan went on to work with a variety of tech startups and media outlets. Through working with the likes of Game Rant, The Hook and What Culture, Dan pursued his interests in technology. The skills he picked up along the way are now being utilised with UNILAD.

Topics: Technology, Elon Musk, SpaceX, Tech, Tesla