The Mineral Rights Podcast: Mineral Rights | Royalties | Oil and Gas | Matt Sands

It's crazy to think that this is our 200th episode! Thanks to you, the listener, for your support. To celebrate, we recorded a slightly different listener Q&A episode where we answered some of your questions related to investing in minerals and royalties. As always, links to the resources mentioned in the show can be found at mineralrightspodcast.com. If you want 1-on-1 coaching on your mineral investing journey, feel free to reach out to Matt at feedback@mineralrightspodcast.com

In this episode, we provide a summary of the oil and gas activity and historical significance of the Barnett Shale Formation in Texas. The Barnett Shale is one of the most productive shale gas plays in the United States and has played a significant role in the growth of the U.S. energy sector. We cover the geology of the Barnett Shale, the top oil and gas operators, political and economic risks to future development, and what the future may hold for this legacy tight gas play.

As always, the charts, graphs, and resources mentioned in this episode can be found at mineralrightspodcast.com.

In this episode we discuss subordination agreements as they relate to mineral rights and royalties. We talk about what you need to know, some of the situations where you might be asked to sign a subordination agreement, and how this type of agreement can have a significant impact on the value of your mineral interests.

The resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

We discuss the recently proposed legislation in Texas which seeks to address ownership and pooling of pore space for CO2 sequestration and how it could negatively affect mineral owners.

Check out the show notes at mineralrightspodcast.com for links to important resources where you can make sure your voice is heard.

In this month's mineral rights news episode, we talk about Texas bills that set state against federal energy regulations, OPEC+ makes surprise production cuts, House Passes Energy Agenda, the recent Dallas Fed Survey of oil and gas executives, and the latest Rig Count!

• Texas bills would set state against federal oil and gas regulation, renewables | The Hill

• OPEC+ may spur U.S. crude oil exports, tick production higher | Reuters

• House Passes GOP Energy Agenda Boosting Oil and Gas Production - WSJ

• Dallas Fed Energy Survey - Dallasfed.org

As always, you can go to mineralrightspodcast.com to find the links to these articles and other resources mentioned in this episode. To send us an article you would like us to cover in a future episode, please email feedback@mineralrightspodcast.com.

Will the HR 1 "Lower Energy Costs Act" actually lower energy costs and could it benefit mineral and royalty owners? Justin and I break down the latest thinking on this proposed legislation and the potential impacts on our minerals and royalties.

As always, show notes with links to the resources mentioned in this episode can be found at mineralrightspodcast.com.

There are several factors that can have a large effect on value of minerals, including commodity prices, when wells are drilled, and lease terms. Of all of these, the one factor that is in our control is the lease royalty rate. In this episode we talk about tips for maximizing value of your minerals and a quick rule of thumb you can use to determine value in certain cases.

As always, links to resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

We get through the last batch of listener questions asked towards the end of 2022. We covered a wide range of topics from leasing tips, how to find unclaimed royalties and other interests you might not know about, how to get notified when there are new wells permitted nearby (and how to tell if you might have an interest in these wells), how to get started investing in minerals the right way (and what to do if you get an unsolicited offer to invest in drilling a well), and more.

As always, links to the resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

In this episode, we discuss the recently approved resolution allowing the Uinta Basin Railroad to secure up to $2 billion in private activity bonds, BP's CEO warns of issues if we rush the energy transition, and New Mexico looks to follow Colorado with oil & gas regulation overhaul. And as always, we talk about the latest rig count and where we are seeing the biggest changes.

If you come across any interesting articles that you would like us to cover in an upcoming episode, please send it to feedback@mineralrightspodcast.com. As always, the links to the articles mentioned in the show can be found in the show notes at mineralrightspodcast.com.

You probably have gone through a lot of effort to understand and get a handle on your mineral interests. In this episode, we talk about how to make it easier for your heirs and what to do if they aren't interested in managing your interests. From how to educate the next generation, hiring a mineral manager to do it for them, to selling your interests, there are a lot of options to consider.

As always, links to the resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

In this episode we talk about what the midstream sector in the oil & gas industry does and how it affects royalty owners. From marketing and managing royalty payments for some operators to separating out the high value NGL's from your gas stream, the midstream oil & gas sector has a big impact on most royalty owners.

As always, links to resources mentioned in the show can be found in the show notes at mineralrightspodcast.com.

In this month's news episode for February 2023, we discuss the bearish outlook for natural gas in 2023, how California's new "emergency" oil & gas setback regulations hurt mineral owners, what happened in the latest OPEC+ meeting, and what to make of the drop in rig count.

As always, links to the articles and resources mentioned in this episode can be found at mineralrightspodcast.com.

https://mineralrightspodcast.com/mrp-188-why-does-the-u-s-import-heavy-oil/In this episode we discuss what type of oil is considered heavy crude, where it is found, and some of the reasons why it is still imported to the U.S. after the shale revolution.

As always, links to the articles we mention in the episode can be found in the show notes at mineralrightspodcast.com.

My guest this week is Jared Boehs. Jared is the CEO of HyQ Technologies, an Oklahoma-based company focused on recycling oilfield produced water into distilled water and other valuable by-products for beneficial reuse. Jared is also a certified mineral manager and helps property owners with operator negotiations. In this conversation, Jared shares the amazing opportunities around water that is produced as a by-product of oil and gas activity.

As always, links to the resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

In this episode we answer more of the questions that were submitted in 2022. We hope you enjoy! As always, the links to the resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

In this month's Mineral Rights Podcast news episode for January 2023, Ohio mineral owners win big on property rights, Oil and Gas prices slide on weakening demand and warmer weather, BP increases investment in onshore U.S. oil & gas development, and the latest rig count!

• Ohio Landowners Win Big on Property Rights
• Oil Prices Slide Amid Signs of Weaker Domestic, Global Demand in 2023
• Natural-Gas Prices Plunge as Unseasonably Warm Weather Is Forecast - WSJ
• Oil Tanks Further on Depressing U.S. Manufacturing Data
• BP To Significantly Boost Investment In U.S. Oil

As always, links to the articles and resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com

In this episode, Justin and I answer listener questions submitted during the first half of 2022. If you submitted a question earlier this year, we will be sure to answer it on air or via email soon so thanks for your patience! As always, show notes with more info can be found at mineralrightspodcast.com. Thanks and have a Happy New Year!

Learn about the history, geology, operators, and risks related to owning minerals and royalties in this prolific natural gas field. Plus, we talk about the exciting opportunity around Helium royalties in the Hugoton Gas Field located in western Kansas.

As always, links to the resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com

Let us know if you have an area that you would like us to feature in a future episode; just send an email to feedback@mineralrightspodcast.com.

Did you know that in 2021, coal accounted for 27% of the world's primary energy which is higher than two decades ago, and about the same level as 50 years ago? We dive into the importance of coal and why it will play an important role in the energy transition.

As always, links to the resources mentioned in this show can be found in the show notes at mineralrightspodcast.com.

In this month's Mineral Rights Podcast news episode for December 2022, U.S. natgas futures rise on cooler weather, oil falls as China COVID policies fuel demand fears, new federal rules crack down on flaring and methane leaks, Chevron to resume Venezuelan crude shipments to the US, and we reveal the latest rig count!

• U.S. natgas futures rise on forecasts for cooler December weather
• Oil falls as China's COVID protests fuel demand fears - Oil & Gas 360
• US rule would limit methane leaks from public lands drilling | AP News
• Chevron to Send First Venezuelan Crude Shipment to US by Late December

As always, links to the articles and resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

Our guest is Jimmy Wright, Certified Professional Landman, Certified Mineral Manager, and President of the National Association of Royalty Owners (NARO) Foundation. In this discussion, we cover a lot of ground from a behind the scenes look at what landmen do, when a mineral manager or consultant can make a big difference, how the NARO Mineral Management Program can help you, and a lot of actionable advice on how to get the best oil and gas lease and how to properly manage your royalties.

As always, links to the resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

Each state is different in the way that certain aspects of royalty payments are handled. One of the more unique situations exists in Oklahoma with the concept of Blanchard Royalty Interests.

Blanchard Interests refer to the way that royalty owners were to be paid by the various Working Interest owners in a well when each working interest owner entered into a separate gas sale contract for their proportionate share of gas produced and sold.

The term Blanchard interest stems from the landmark Oklahoma Supreme Court case from 1963 between Shell Oil Company and the Oklahoma Corporation commission, often referred to as the "Blanchard Decision."

Be sure to listen to this one if you have interests in Oklahoma or if you want to understand some tips on how to make sure you are getting paid correctly in any state.

As always, show notes with links to the resources mentioned in this episode can be found at mineralrightspodcast.com.

On October 31st, Joe Biden made remarks about oil company record profits. He acknowledged that companies should earn a fair return for innovation and at the same time claimed that current oil company profits are a result of profiteering instead of innovating. In this episode, we react to this claim and provide examples of how oil industry profits are a direct result of innovation and this has resulted in lower energy prices here in the U.S.

As always, links to the resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

Permian Natural Gas prices tank, Is Biden's oil strategy really strategic?, $65 billion mineral deposit in Michigan discovered, and the latest rig count!

• Texas Natural Gas Prices Sink Close To Zero | OilPrice.com
• 4 questions answered about Biden's oil strategy - E&E News
• Michigan sits on a mineral worth billions — but it's 8,000 feet underground - mlive.com
• Rig Count

As always, links to the articles and resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

In this episode we go behind the scenes within an oil and gas company and discuss how they decide where to drill the next well. In oil and gas lingo, for mature plays this process is called Development Planning.

There is a lot that goes into determining where the operator will decide to drill next and we discuss some of these considerations and some helpful resources where you can possibly find out when an operator might drill a well that has been permitted on your land.

As always, links to the resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com

If we are serious about the energy transition, then all forms of energy will be required including mining the raw materials necessary to manufacture the batteries necessary to store the energy from unreliable wind and solar plants. The U.S. has extensive lithium reserves as evidenced by the recent discovery of a world-class deposit in Maine but yet we produce less than 2% of the world's supply. In this episode we talk about how the U.S. could play a major role in increasing our energy security by mining critical minerals like lithium domestically.

As always, links to the resources and articles mentioned can be found in the show notes at mineralrightspodcast.com.

My guest this week is Tim Pawul with the Mineral and Royalties Authority and host of the Minerals and Royalties Podcast. I'm excited to have Tim back on the show to give a minerals market update and to talk about how things have changed since the last time he was on in 2020.

If you missed my first interview with Tim, be sure to listen to Episode 69 to hear more about his background. I'm really excited to have Tim back on the show to talk about the current minerals market!

As always, links to the resources mentioned in the show can be found at mineralrightspodcast.com.

OPEC cuts production by 2 million barrels per day, will prices rise? Oil supply shock on the way due to OPEC and the US tapping the SPR? Colorado wells orphaned when gas gathering system shut off and Adams County won't let operator mine Bitcoin to keep wells pumping oil.

• OPEC will cut production by 2 million barrels a day, likely sending gas and oil prices back up
• An Oil Supply Shock May Be Imminent | OilPrice.com
• 250 Colorado wells orphaned when 1 gas gathering system shut off
• The crude marriage of oil drilling and bitcoin mining gets a wary eye from Adams County
• North America Rig Count

As always, links to articles and references can be found in the show notes at mineralrightspodcast.com.

The principles of the Environmental, Social, and Governance movement would seem to be moving the world in the right direction. Who wouldn't want a cleaner environment, fair treatment of workers, and elimination of corporate bribery and corruption. Under the guise of advancing "responsible corporate citizenship", the ESG movement has instead turned into a means for forcing an underinvestment in fossil fuel energy and we are now paying the price for this.

In this episode, Justin and I talk about the origin and history of the ESG movement and some of the unintended consequences of this seemingly "good" initiative. As always, links to the resources found in this episode can be found at mineralrightspodcast.com.

The energy transition is underway but how long will it take? We discuss this and the different outcomes forecast by BP and Shell in their most recent energy transformation scenarios. There is a wide range of potential outcomes but one thing is for certain, we will continue to rely on oil and gas - but for how long?

As always, links to the resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com

If you were to believe the headlines, it would be easy to think that we can easily transition away from fossil fuels over the next decade. Given the one-sided focus on climate change and how fossil fuels might be contributing to global warming, it stands to reason that this transition will eventually occur. That said, logic and physics will eventually win and we are now finally seeing this play out due to misplaced energy policy in Europe.

In this episode, Justin and I talk about Peak Oil theory, China's dominance over the solar panel supply chain and what is being done to correct this, the resurgence in nuclear power, and how investment banks are finally realizing that natural gas can help bridge the gap to a low-carbon future. We wrap up with a discussion on why now, more than ever, we are bullish on the future of U.S. produced oil and gas in helping meet the world's energy needs.

As always, links to the resources mentioned in this episode can be found at mineralrightspodcast.com.

In this month's Mineral Rights Podcast news episode for September 2022, we discuss why Boulder County should lease their mineral rights, a former mineral rights investment fund manager is charged with fraud, Elon Musk says we need to use more oil and gas, and we talk about the current rig count!

• Boulder County to consider leasing mineral rights for drilling pad
• Former oil and gas mineral rights investment fund manager charged with fraud | Woodlands Online
• Elon Musk Says World Needs More Oil and Gas - WSJ

As always, you can go to mineralrightspodcast.com to find the links to these articles and other resources mentioned in this episode. To send us an article you would like us to cover in a future episode, please email feedback@mineralrightspodcast.com.

In this episode, Ben MacFarlane with Blackbird BI and I discuss U.S. Oil and Gas Trends across the major shale basins and plays. Ben reveals the current activity levels and what future activity levels might look like across the U.S. and which counties are seeing the most activity. Be sure to download the free report that Ben and I discuss during this episode so you can follow along and learn about the outlook for your area.

As always, show notes with links to the resources mentioned in this episode can be found at mineralrightspodcast.com.

The Inflation Reduction Act recently passed the senate and is expected to pass the house vote on Friday August 12th so we wanted to break down how this bill is going to affect mineral and royalty owners.

As always, links to the resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

If you receive royalty income from oil & gas wells, you probably are familiar with the statement that accompanies your royalty check. This statement contains a lot of useful information that you can use to make sure you are getting paid correctly. From the volumes of oil, natural gas, and natural gas liquids that were sold in a given month to the price that was paid for these products to what post-production costs were deducted from your royalties, if any. These are critically important to keep track of as a royalty owner to ensure that you are getting paid what you deserve.

Thankfully there are a few shortcuts and time-saving tips that you can take to streamline this process for you and your family or for your company. That starts with automating the process of keeping track of your royalty check payments and looking on a map to see where new permits or rigs are located relative to your interests. Better yet, how about an automated email notification if a new permit is filed nearby? Learn about this and more in this episode. As always, links to the resources mentioned in this episode can be found at mineralrightspodcast.com.

We recorded this month's Mineral Rights Podcast news episode live at the National Association of Royalty Owners (NARO) state Convention in Denver, CO. We discuss how Exxon and Chevron's record profits stack up to other industries, Ovintiv sells Uinta Basin acreage, and New Mexico's oil and gas emissions rule becomes law, and the current rig count!

• Exxon and Chevron Report Record Profits on High Oil Prices - The New York Times
• Colorado oil producer Ovintiv sells assets in two U.S. basins, returns money to shareholders - Denver Business Journal
• New Mexico's nationally leading oil and gas emissions rule becomes law

As always, you can go to mineralrightspodcast.com to find the links to these articles and other resources mentioned in this episode. To send us an article you would like us to cover in a future episode, please email feedback@mineralrightspodcast.com

Dr. Bill Eustes is a professor emeritus with the Petroleum Engineering Department at the Colorado School of Mines and an instructor with the TOP Energy Training consortium.

We talk about what goes into drilling a well, what the future holds with advancements in drilling technology, and how what we've learned in oil and gas drilling can be applied to things like geothermal energy and CO2 sequestration.

Resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

In this episode, we answer listener questions that were submitted via email by John, Sarah, Helen, Jeffrey, Ervin, Danny, John, Chuck, and Michelle. If you have a question that you need help with, send it to feedback@mineralrightspodcast.com. Who knows, we might just answer it in a future episode!

Resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

Prior period adjustments are a relatively common occurrence in the oil and gas industry and typically result from changes in volumes of oil, natural gas, or NGL's that were actually sold vs. what you were paid for, or adjustments in the prices paid for these products, or in some cases changes to the division of interest in your wells. The first two are more common and the frequency of PPA's may vary greatly by operator, state, and basin or play.

More information including resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

In this month's mineral rights news episode for July 2022, we talk about gasoline prices and refinery capacity and the outlook for the future, oil and gas activity in West Texas linked to increase in earthquakes, are Saudi Arabia and the UAE already pumping at maximum capacity?, and the rig count is up again this month!

• How a massive refinery shortage is contributing to high gas prices : NPR
• UAE, Saudi Arabia Pumping Oil Near Limits: Macron
• Oil and Gas Activity Linked to Most Recent Earthquakes in West Texas - UT News
• Baker Hughes Rig Count

As always, you can go to mineralrightspodcast.com to find the links to these articles and other resources mentioned in this episode. To send us an article you would like us to cover in a future episode, please email feedback@mineralrightspodcast.com

In this episode, we talk about the different strategies to consider when investing in mineral rights and royalty interests. Ultimately, the strategy that you employ will determine the types of properties that meet your investment criteria. From the type of interest, the geographic location, whether it already has producing wells or is undeveloped, to the product mix, all of these factors can contribute to the potential for generating near-term yield or whether it is a longer-term capital appreciation play.

In case you missed it, we provide an overview of the different ways to invest and the specific step-by-step process for directly purchasing minerals and royalties in previous episodes so be sure to listen to these as well:

• MRP 26: Investing in Mineral Rights and Royalties
• MRP 126: Deep Dive on Investing in Mineral Rights, Royalties, and Working Interests
• MRP 128: Managing and Investing in Minerals and Royalties with Jarrett Kitch
• MRP 159: Guide to Buying Mineral Rights

Links to the resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

Learn how to find the best mineral rights purchase opportunities, how to identify and contact the owners, how to hire the right advisors and common mistakes to avoid.

Links to the resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

What is geothermal energy? How does it work? Is it renewable? How can mineral owners benefit from geothermal energy development?

Listen to the entire episode to hear answers to these questions and more. As always, resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

this episode we give an update on the current oil market and discuss why leading indicators like the inventory of Drilled but UnCompleted (DUC) wells is important in determining if the U.S. can grow production to meet demand (and in turn cause oil prices to fall). We also talk about the impact of the recent EU embargo on Russian crude oil and the June 2022 OPEC+ meeting and how these things will affect prices for the remainder of 2022.

Resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

In this month's Mineral Rights Podcast news episode for June 2022:

• Mineral interest owners sue Gov. Justice over new forced oil and gas well unitization law | Energy and Environment | wvgazettemail.com
• Why Shale Drillers Are Pumping Out Dividends Instead of More Oil and Gas - WSJ
• Sorry, But for You, Oil Trades at $250 a Barrel - The Washington Post
• Baker Hughes Rig Count

As always, you can go to mineralrightspodcast.com to find the links to these articles and other resources mentioned in this episode. To send us an article you would like us to cover in a future episode, please email feedback@mineralrightspodcast.com.

The current helium supply crunch is likely to get worse before it gets better but in the meantime we talk about how royalty owners can profit from Helium production and prices upwards of $600/mcf for this rare gas.

Resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

In this episode we discuss how different oil and gas companies work together, what agreements they use, how a company can be an operator in some wells and also a non-operated working interest partner in other wells that another company operates. Plus the strategies and tactics often involved with these types of acreage trades and agreements.

As always, links to the resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.

In this episode we provide an overview of the Eagle Ford Shale play in South Texas. Learn about the history, geology, operators, and risks related to owning minerals and royalties in this prolific oil and gas basin. Plus, we talk about some exciting developments where operators are also targeting additional formations like the Austin Chalk and Buda Limestone in certain areas.

Links to the charts and resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com

In this month's Mineral Rights Podcast news episode for May 2022, we talk about how private ownership of mineral rights is America's secret weapon, Fort Collins, Colorado looks to buy all minerals under the city, PA lawmakers clarify pore space rights, why oil companies aren't growing production, and the Baker Hughes Rig Count.

• Mineral Rights In America: A Secret Weapon For Clean Energy Abundance?
• Fort Collins City Council mulls an unusual path for preventing oil and gas development
• Pa. landowners have dealt with coal, oil and gas rights. Now, there are pore rights. | Pittsburgh Post-Gazette
• Why US Oil Companies Aren't Riding to Europe's Rescue - The New York Times
• Baker Hughes Rig Count

As always, go to mineralrightspodcast.com to find the links to these articles and other resources mentioned in this episode. To send us an article you would like us to cover in a future episode, please email feedback@mineralrightspodcast.com.

Did you know that the oil and gas industry is not the only industry that uses underground injection wells. As mineral and royalty owners, it is helpful to understand the difference between a saltwater disposal well and a water injection well used for enhanced oil recovery. Plus, it is important to understand who benefits from underground injection wells used in the oil & gas industry. In this episode, we talk about the different types of injection wells and considerations from both a surface and mineral owner perspective.

As always, show notes can be found at mineralrightspodcast.com.