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Force Mejeure Impacting Mineral Owners

Force Majeure Impacting Mineral Owners Have you received a letter from an oil and gas operator requesting a Cessation of Production Waiver or a notice of an operators need to shut in wells due to Force Majeure?  This article is going to help you understand what these two types of notices are and what they may mean to you. The global pandemic caused by COVID-19 has many mineral and royalty owners concerned about the impact of Coronavirus on their royalty income.  With governments around the world declaring states of emergencies due to the pandemic, the oil market has seen a drastic drop in the price of crude oil and a significant decrease in the demand for it.  As a result, many operators are shutting in their wells until things change.  Here are the two most common [...]

By |2020-05-12T17:19:47-05:00May 12th, 2020|Industry News|

Negative Oil Prices Impact on Royalty Checks

Negative Oil Prices Impact on Royalty Checks In a historic move, oil prices for May 2020 delivery have turned negative!  Many mineral owners are now wondering what this means for their royalty checks.   We're going to break down the situation and help mineral owners get a better understanding of exactly what is happening.   Negative oil prices will certainly have an impact on mineral owners but it's important to see the full picture. Why are oil prices negative? As we discussed in our recent Coronavirus article, there are a couple of things working together to tank the price of oil.  The first is demand.  With Coronavirus bringing the US economy to stand still, there is very little demand for oil.   Many people are working from home, not working, and not going anywhere outside of work.   Vacations have come [...]

By |2020-06-09T12:50:12-05:00April 20th, 2020|Industry News|

Coronavirus Impact on Mineral Rights

Coronavirus Impact on Mineral Rights Owners With the recent news about Coronavirus, many mineral owners are concerned about the impact of Coronavirus on mineral rights.   If you are a mineral owner who is concerned about the impact of Coronavirus on mineral rights, this article will help.   We'll guide you through what this means for mineral owners, your royalty checks, and what to expect in the future.   In addition, we are going to cover the impact of Russia and Saudi Arabia choosing to flood the market with oil. Coronavirus Impact on Oil and Gas Demand The biggest near term impact on that Coronavirus has on mineral rights is in the demand for oil and gas.  As a mineral owner, the amount that you get each month from oil and gas royalties is tied to the [...]

By |2020-03-20T16:03:12-05:00March 17th, 2020|Industry News|

Mineral Rights and Medicaid Eligibility

The information provided in this article is for informational purposes only.  US Mineral Exchange is not liable or responsible for any party who uses or relies on this information when applying for or being approved/denied for Medicaid.  The information provided below is simply our opinion of matters related to Medicaid eligibility.  You should consult with a qualified Medicaid Attorney and Accountant before applying for Medicaid. Mineral Rights and Medicaid Eligibility At US Mineral Exchange we commonly get asked about mineral rights and medicaid eligibility.   If you are trying to qualify for medicaid, your mineral rights could be an asset that disqualifies you from medicaid.  However, the rules can get complicated and this article will help point you in the right direction.  The most important thing to understand is that the rules vary from one state [...]

By |2019-05-18T17:10:22-05:00May 16th, 2019|Industry News|

Lowest Rig Count since 1949

Lowest Rig Count Since 1949 As a mineral owner, one thing to keep your eye on is the rig count.   Rig count is an indicator of how much activity is taking place in the oil and gas industry.  When rig counts are high it means the oil and gas companies are very active.  This means that companies are out there leasing up properties so they have an inventory of property for drilling.  When rig counts are low oil and gas companies reduce leasing or stop leasing. We are currently looking at the lowest rig count since 1949.   The low rig count is due the low price of oil recently.  With oil prices still below $40/barrel and rig count at it's lowest level in over 50 years, the activity for leasing is grinding to a quick halt.  Companies [...]

By |2019-02-25T16:02:37-06:00March 13th, 2016|Industry News|