Oil and gas companies continue to cut, slash and reorganize as they wait for crude prices to stabilize. And while news agencies are covering these stories from every possible angle, there has been little discussion about how the pricing situation is affecting you...the mineral owner.
What About the Mineral Owner?
Bloomberg recently looked at how reduced drilling is affecting the mineral owner and concluded that the increasing number of bankruptcies are leaving owners out in the cold, often forcing them to stand in a long line of other creditors looking to be paid. Others are simply confused by reduced royalty checks that don’t make sense anymore. full article here
According to the article, “Royalty payouts from bankrupt operations have shrunk to a fraction of the rates paid before the crash, sometimes more than can be explained by the drop in oil price. In the worst cases, landowners can be left with no one to take responsibility for abandoned waste, spills and other hazards, say industry experts who have past experience with oil busts.”
A shout-out to MRF member, Clint Liles, who was quoted in the article.
How are low crude prices affecting YOU?
Has your leasing company gone bankrupt, are you confused by what it all means, have the checks stopped coming or it is business as usual?
Elizabeth Alford
MRF Admin