MRP 53: Negative Royalties and Shut-in Wells

Everyone will have seen the news by now that the price for WTI crude oil for May delivery went negative for the first time ever on April 20, 2020 closing at -$37.63 a barrel.  What we'd like to talk about today is the potential impact on royalty owners.  We bring back attorney Spencer Cox with Burns Charest, LLP to talk about negative royalties and shut-in royalty provisions in oil and gas leases.  You may remember Spencer from Episode 13 where we talked about royalty audits, back pay, and litigation.  Get Your Free Copy of the Burns Charest, LLP White Paper on Negative Prices & Royalty Calculations that Spencer mentions in the show.  Did you know that there is a new Facebook Group for the Mineral Rights Podcast Community?  Click here to go to The Mineral Rights Podcast Facebook page.  While you are there, be sure to hit "LIKE" and go to the "Groups" tab to join the Mineral Rights Podcast Community. Again, be sure to like the mineral right podcast page first as I will also be doing some live q&A there coming up in the future so you will be able to stay posted when that happens.  If there is a question you would like me to answer live then send it to [email protected].