I own mineral rights in Matagorda County, TX. I received a notice of El Dorado Gas and Oil Co. going bankrupt, with a list of many holdings that included my mineral rights, but no indication that I was to do anything. I found on their website that they were auctioning off huge amounts of equipment. Wondering if this had any impact on my mineral rights, I’ve written to the attorneys handling the bankruptcy but have received no reply. I’m asking here if anyone can tell me if something like this has any impact on my ownership of the mineral rights. My guess is that it doesn’t, and it would only be if someone was wanting to want to buy the surface land to build, etc. that I would definitely be involved to sell them that right. Looking for clarification…
Definitely consult with an attorney about this.
The operator’s bankruptcy does not affect your minerals and title. Its creditors will be paid out of its assets such as the equipment, although most are unlikely to be paid in full. The operator may continue operations on your wells after reorganization. Or another operator may buy out the wells. In that case, you will continue to receive royalties. If operations cease on the unit wells, then your lease will expire unless it is held by other wells. Watch the RRC production reports to see if there is current production. The bankruptcy will not affect your surface title. Why do you expect to sell surface? The bankruptcy lawyers are unlikely to respond to your questions as they do not represent you. If you have a large claim against the operator, then you should have already filed that in the bankruptcy court. Although unless it is a secured claim, your payment will be limited. For most royalty owners there is nothing to do when the operator files bankruptcy.