Production Company Bankruptcy Impact on Mineral Owners in Oklahoma

Oklahoma Mineral Rights
1

I have minerals leased to Samson in Pittsburgh County. If it files for bankruptcy, as many are predicting, how will that effect my royalty payments? Are mineral owners secured or unsecured creditors under Oklahoma law?

2

Loaded question. I don't know the legal answer, but I do know my personal experience ... which was that all mechanical lien holders got paid first. Royalty owners got paid last.

3

Hey Susan,

We have wells in ND with American Eagle Energy who has filed Chapter 11 (reorganization). We got the royalties they owed us prior to filing with no problem (unsecured debt), and we filed a claim to be sure we would get it.

There was an interesting discussion here on the forum about this a couple of years ago, with input from powerhouse info guys Hutchinson and Cotten. You should check it out:

http://www.mineralrightsforum.com/forum/topics/how-will-oil-company-bankruptcy-affect-me-as-a-royalty-owner

4

Thanks Christine. This was helpful.