government bailout

If the government pays companies not to pump oil, how are royalties affected?

If a well is shut in completely, then the terms of your lease will guide if you get any money. In general, no production means no sales which means no royalties. If you have a shut in clause in your lease, you may get a small per acre payment.

If wells are curtailed, then there is product to sell and the lesser royalties will be reflected due to less volumes.

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