With the recent uptick in energy-related bankruptcies expected to continue for the foreseeable future (in one prominent example, industry giant Weatherford has just filed for Chapter 11 protection), oil and gas royalty owners need to be on alert. Because companies in financial distress usually fall behind on royalty payments, royalty owners, usually one of the largest groups of creditors in oil and gas bankruptcies, tend to have a lot at stake.
A recent post to the Energy Law Today blog goes over how oil and gas royalty owners can protect their interests in these tough economic times. This post covers:
- Secured Status under Texas Law
- Factors To Be Wary Of And How To Increase Protection