Emerald OIl Bankruptcy -- What Does This Mean For Mineral Owners -- April 8, 2016

Updates

April 9, 2016: a reader has provided a most insightful answer to this question; much appreciated. See first comment; I've brought it up here to make it google-searchable:

I have received some bankruptcy papers from emerald and they have requested that the bankruptcy court allow them to give payment priority to mineral owners. They state this is necessary to protect the value of the assets in bankrupcty as a lack of payment could cause contracts and leases to lapse. I would expect payment to be made but they maybe delayed. On the other hand they shut in some of their wells in stark county in March. No production = no royalty payment needed anyway.

Original Post

 

A reader over at the discussion group asks what it means for mineral owners with regard to Emerald Oil filing for bankruptcy.

I don't own any minerals, and although I have my thoughts on what it means, I thought it would be best for those with experience in this area provide your thoughts.

Thank you.