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

I hope everyone listening is well in the midst of the pandemic. In this month's Mineral Rights Podcast news episode for April 2020 we have a couple of stories with a positive outlook (for a change!):

Oil and gas industry faces huge loss | The U.S. Is Becoming The World's Largest Oil And Natural Gas Exporter | It's not Armageddon for America's oil and gas industry

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

I hope that you are well in these extremely challenging and uncertain times. With the volatility in the financial markets, it is hard to keep track of the price of oil and gas. We recorded this episode in January of 2020 before the current crisis but I think this content is even more relevant today.

Given the extreme drop in oil and natural gas prices, it is even more important to keep tabs on your royalty checks to make sure you are getting paid what you deserve. Specifically, it is a good practice to double check the volumes that are reported on your check stubs and to understand the price that was paid for a given month. To help you with this we answer a listener question about how natural gas prices are determined and things you need to know in order to be able to reconcile the price paid for natural gas, NGLs, and crude oil.

Thank you so much for listening and I hope you find some useful information in this episode that you can apply to your own situation.

As always, you can go to mineralrightspodcast.com to find the show notes and specific examples of how to calculate approximate value of NGL volumes from your check stub. To ask a question that you would like answered in a future episode, please email feedback@mineralrightspodcast.com

I hope that all of you are well in these extremely challenging and uncertain times. After focusing on the important things, like our health and our families, we have to re-focus our attention to getting things done.

There are still plenty of opportunities in the minerals market and in a time of low oil and gas prices, it is even more important to be as efficient as possible in order to stay in business. Specifically, companies need to increase productivity, lower costs, and be even more nimble to be able to respond to quickly changing market conditions.

In this episode, Justin and I talk with Ashley Gilmore, the co-founder of Tracts.co whose revolutionary approach to running title has helped companies both large and small streamline the way they run title. In fact, their tagline is to run title at "half the cost and twice the speed".

You can download the free resource guide mentioned on the show to learn more about Tracts at: Mineralrightspodcast.com/tracts

In this bonus episode, Justin and I provide an update on the recent collapse in crude oil prices, how the Coronavirus is impacting global oil demand, the future of US oil and gas companies, what this all means for the market for mineral rights and royalties, plus the silver lining to the drop in oil prices.

As always, you can find the show notes at mineralrightspodcast.com. Be sure to subscribe wherever you get your podcasts as we have some amazing guests coming up who can help you make the most of your minerals and royalties in a low oil price environment.

In this month's Mineral Rights Podcast news episode for March 2020:

Gordon promises caution, pitches land deal as an investment | Federal land buy-back program coming to Wind River Reservation, aims to return more land to tribal jurisdiction | IEA: Coronavirus May Hit Oil Demand Growth More Than Expected

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

In this month's Mineral Rights Podcast news episode for February 2020:

Despite Prop 112's Loss, Colorado's Fracking Foes Are Back With 6 New Ballot Measures | Should mineral rights owners get paid if the government blocks oil development on their land? | Elizabeth Warren's Gas Royalties

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

On today's episode Justin Williams and I speak with Will Cullen who is the Vice President of LongPoint Minerals, LLC. Will and I go back to when we both worked for Shell in different roles supporting the Pinedale Anticline asset in Wyoming. He has an extensive background in finance, economics, and Business Development in oil and gas and in minerals specifically. You won't want to miss this episode because we cover a ton of insightful information as to how a large mineral buyer operates and approaches mineral acquisitions and the current state of the minerals market. We also talk about some really helpful tips to help the individual mineral owner to get the most when leasing or selling their minerals.

Be sure to check out the show notes at mineralrightspodcast.com to download a free mineral rights valuation resource guide that I put together that goes into more depth into some of the topics we discuss.

Prior to joining LongPoint, Will served in various capacities for Shell beginning in 2007 as a Development Economist followed by a placement into Shell's A&D group as Manager M&A and Commercial Finance. In 2015, Cullen was appointed as MLP Business Analysis Lead. Before his career with Shell, he owned and operated Highland Minerals & Royalties and was in Institutional Sales with Petrie Parkman. He joined the FourPoint Energy team in 2016, as the Vice President of Business Development and immediately helped the team launch LongPoint Minerals and LongPoint Minerals II. Since 2016, LongPoint has closed over 1,200 transactions and acquired over 127,000 Net Royalty Acres in Oklahoma and Texas. Will Cullen holds a Bachelor of Fine Arts from Montana State University and an MBA and a MS in Finance from the University of Denver.

Please subscribe to the show on iTunes or wherever you get your podcasts and please leave us an honest rating and review. To ask us a question to be featured on an upcoming episode, please leave a comment at mineralrightspodcast.com or send an email to feedback@mineralrightspodcast.com.

In this month's Mineral Rights Podcast news episode for January 2020:

New Wyoming Rule Seeks to Boost Oil, Gas Permit Competition (Final Rule Text, Presentation on New Rule) | 'A huge opportunity': Alberta oilfields could give rise to lithium industry fuelled by electric cars | President Obama's Support For America's Shale Oil And Natural Gas

As always, you can go to mineralrightspodcast.com to find the links to these articles. 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 Overriding Royalty Interests, also sometimes called Overrides or ORRI's. We cover everything you need to know about Overrides if you have inherited them, are looking to invest in ORRI's, or just want to know more.

In this month's Mineral Rights Podcast news episode for December 2019:

The Underground Way to Earn a 10% Yield in Oil Stocks | Landowners Allege Anadarko Monopolized Oil And Gas Leases, Fear Major Financial Loss | Drilling, dollars & debt: Colorado's oil and gas industry is leveraged to the hilt. What does that mean for the future?

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

In this episode we provide a summary of the Uinta Basin located in Utah. Learn about the geology, the major operators who are drilling in the Uinta Basin, and what the future may hold for this area if you have minerals or royalties here or are looking to invest. As always, you can find show notes at mineralrightspodcast.com.

In this month's Mineral Rights Podcast news episode for November 2019:

House passes Chaco Canyon protection bill | Court forces landowners to allow oil, gas exploration. Widow, dying woman fighting back. | AEP retains oil and natural gas drilling rights on 31,000 acres Ohio plans to buy for $47 million

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

In this episode, we dive deep into how to handle inherited mineral rights. I'm really excited about this conversation because we cover the ins and outs of one of the most common situations that most individual mineral owners face. Justin also talks about his family's experience in going through this process so you can learn from that as well. Since this is a long one and chock full of tips, go to mineralrightspodcast.com to find the link to the full transcript to this episode that you can use as a handy reference.

In this month's Mineral Rights Podcast news episode for October 2019:

WV oil and gas industry to watch upcoming legislative session closely | Chevron's shale allies are its secret weapon in Exxon race | U.S. Natural Gas Reserves Continue To Soar

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

In this episode we provide a summary of the Powder River Basin located in Wyoming and parts of Montana. Learn about the geology, the major operators, exciting well results, and what the future may hold for this area if you have minerals or royalties here or are looking to invest in the basin.

In this episode we dive a bit deeper into the documents that you need when requesting any type of mineral rights valuation or appraisal. We talk about specific examples of how these documents are used to help the appraiser make the right assumptions and how having them will save you time and money. These are the documents we ask our mineral rights appraisal clients for at Silverheels Investments but any mineral appraiser will also need these in order to give you the most accurate results.

In this month's Mineral Rights Podcast news episode for September 2019:

Task force to mull putting real estate, mineral rights on the blockchain | Meeting regarding mineral rights on Monday | Judge sides with Wilkinson family in Lake Sakakawea mineral dispute

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

In this episode we provide an overview of the types of documents you should keep for your mineral rights and royalties. In other words, we talk about document management for mineral owners. We cover the most common documents you should have on hand as well as the high-level categories these documents fall into. Listen to the end for some tips on how to organize the documents so you can find them when you need them.

In this month's Mineral Rights Podcast news episode for August 2019:

As Drillers Struggle, Shale Investors Seek Safety in Mineral Rights | A top-producing, but struggling, Eagle Ford driller hit with $44M court judgment | Deadline set in White Star Petroleum bankruptcy: Mineral rights owners have until Aug. 23 to file claims

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

I sit down with Rob Prentice, the President of Turrett, LLC and current President of the Colorado Chapter of the National Association of Royalty Owners (NARO). Rob is an appraiser of mineral rights emphasizing oil and gas minerals. We dive deep into the types of mineral rights appraisals and specifically when you should get an appraisal done to set the IRS tax basis for minerals inherited then sold. We also talk about the National Association of Royalty Owners and what you need to know about this organization and why you should be a member if you aren't already one. If you haven't already, be sure to listen to the Mineral Rights Podcast Episode 4 where I talk about the different ways that minerals are valued. Be sure to check out the show notes to download a free IRS Mineral Rights Valuation and Tax Resource Guide.

In this episode, we provide an overview of the key facts and things you should know if you own minerals in the Greater Permian Basin, including the Delaware Basin, Midland Basin, Central Basin Platform, or Northwest Shelf. Please let us know if this is useful and if you have any requests on a particular area that you would like us to cover!

In this month's Mineral Rights Podcast news episode for July 2019: Fracking in Ohio: State law gives energy companies right to force landowners into leases | Interior to Support Critical Minerals Strategy through Faster Permitting, Better Information, Nationwide Examination of Minerals Potential | Bill To Amend Mineral Lease Act, Raise Royalties And Cut Lease Sales Draws Opposition

In this episode we answer listener questions about decline rates for unconventional oil and gas plays, leasing vs. forced pooling, and what happens when one operator buys an oil and gas lease from another operator.

To ask a question to be featured in an upcoming episode, email feedback@mineralrightspodcast.com.

This is the first in our series about the major producing oil and gas basins and plays in the US. We provide an overview of the key facts and things you should know if you own minerals in the DJ Basin. Please let us know if this is useful and if you have any requests on a particular area that you would like us to cover!

Supreme Court sides with property owners; companies have no right to get natural gas without permission | North Dakota tribe defends its rights to minerals from state | Navajo Allottees Defend Mineral Rights And Cultural Heritage In Opposition To Exclusionary Zone Near Chaco Canyon

Today we're talking about investing in oil and gas mineral rights and royalties. We cover the pros and cons of this type of investment, and the different ways to invest as well as some of the potential requirements for these investments.

In this month's Mineral Rights Podcast news episode:

Deep-sea mining could provide access to a wealth of valuable minerals |Bullock signs bill clarifying fossils are part of property surface rights in Montana | Occidental Wins Battle for Anadarko as Chevron Exits Bidding | What Chevron stands to lose if Occidental wins bidding war for Anadarko

And remember to leave a rating and review on iTunes or wherever you are listening to this show and send a screenshot of your review to: feedback@mineralrightspodcast.com to be entered to win a free copy of the book that was mentioned in our interview with Phil Sherwood of SherWare/WellProfits and the "We're Still Here Podcast". All entries must be received by June 1st 2019 so don't wait!

Today we have Phil Sherwood, CEO of SherWare, Inc., an oil and gas accounting software company, has been in the industry for 25 years. He is the host of the We're Still Here podcast where he has taken his amazement at the tenacity, fortitude and rebound ability the people who keep the oil & gas industry running have had to survive, no matter what the market conditions looked like and created a show about it! His company has several products, including WellProfits, which automates how you track and analyze royalty and mineral interest data for family trusts, investment funds, and individuals so you have more time to live your life.

Listen to this episode to learn how to negotiate a Surface Use Agreement (SUA). A Surface Use Agreement (SUA) is a contract between the surface owner and the lessee (usually oil & gas company) to an oil and gas lease. This contract outlines the rights, duties, and obligations by both the landowner and operator including things like the size of the surface disturbance that will be allowed when constructing well pads and roads, compensation for any property damage that might be done by the operator.

You have heard his voice on many of the Mineral Rights Podcast episodes and now it is time to find out just who Justin Williams is. Listen in as Matt interviews Justin!

In this month's Mineral Rights Podcast news episode:

Colorado Senate Bill 19-181, the oil and gas regulations bill, gets final approval and is headed to governor's desk | House approves measure to protect mineral rights owners from governmental takings, sends to Senate | EPIC study finds landowner revenue, industry output would increase with open auctions

Today we talk about taxes on mineral rights and royalties. Learn how royalties and lease bonus proceeds are taxed. Get tips on common deductions and credits to make sure you know the questions to ask your CPA when it comes time to file your taxes. We also cover a little known fact on why it makes sense to determine the cost basis for mineral rights that you inherit even if you don't plan on selling.

In this month's Mineral Rights Podcast news episode: Industry groups, politicians seek to delay Colorado oil and gas bill | North Dakota energy bill criticized as 'flat-out taking' of private property rights | Suit on forced pooling of mineral rights remains in background.

To ask us a question to be featured on an upcoming episode, please leave a comment at mineralrightspodcast.com or send an email to feedback@mineralrightspodcast.com.

In this episode, Justin Williams and I cover the basics around the Net Royalty Acre. We talk about the difference between the Net Royalty Acre (NRA) and Net Mineral Acre (NMA) units of measure and when to use each one. Plus we cover how to calculate how many Net Royalty Acres you have.

This is the first episode that we will be doing monthly where we cover the latest news relating to mineral rights. We'll also chime in to tell you our thoughts on each article. I hope this is useful - let us know if you want to hear more content like this!

In this episode, we talk about what you need to know about Oil & Gas Division Orders, from what it is, what information is included, and things to consider if you get one in the mail. We also cover a few special cases and some common questions that Matt answers at the end of the show.

In this episode, Justin Williams joins me again to provide the individual mineral owner's perspective. We discuss the typical lifecycle of an oil and gas well and how long it takes from when they start breaking ground until you start getting paid royalties. We also talk about Texas statutes that exist to protect royalty owners and provide certain timeframes for operators to respond to written requests. Be sure to stay tuned until the end because I also answer some common questions that mineral owners often have.

Today we have Jeff Kummer with Mineral Tracker on the show to talk about the products and services they offer to mineral owners. MineralTracker focuses on a wide range of mineral owners from those who own smaller interests from just a few wells to those who have interests in thousands of wells. MineralTracker uses proprietary algorithms to allow you to understand predicted royalty income both historically and into the future.

Today we have Spencer Cox, an attorney with Burns Charest. He's going to help us dive deeper into the world of royalty audits and when litigation might be an option for mineral owners to pursue.

Today we have Gabe Wilcox the CEO of MineralSoft. He's going to tell us how they got started and some of the solutions they offer to mineral owners to help make sure they are making the most out of their assets.

I met some of the MineralSoft team a few months ago here in Denver and got to see their software first hand. I thought it would be great for them to come on the show and talk about how they can help mineral owners manage the often complex business of making heads or tails of your monthly royalties. Also, this is the first in a series of episodes where we will be featuring companies that have tools and services for mineral owners so stay tuned to find out about other great companies out there serving our market.

As I mentioned before, we are running a contest for anyone who leaves us a review on iTunes. Just go to mineralrightspodcast.com/contest to enter!

In this episode, we interview expert Clint Goos on the subject of Oil and Gas title issues and curative measures. Clint is an experienced attorney, landman, and project manager with NorthStar Energy Company based in Denver, Colorado. This episode is full of useful information for mineral owners who need to know their options for correcting gaps in the chain of title or other common title defects.

In this Episode of The Mineral Rights Podcast, we cover how to perform a basic title search on your own, what document types to look for, and several free online resources that can help you run title. Show notes: http://mineralrightspodcast.com/episode10

In this episode, we talk about a potentially deceptive practice that we've come across and want to make other mineral owners aware of. It is not very common but can have significant unintended consequences if you fall into this trap.

Specifically, we are talking about a royalty lease which is being presented as if it were a mineral lease (especially a top lease). Listen to hear more about how to protect yourself against this potential scam.

In Episode 8, we talk about forced pooling and expand on the concept of non-operated Working Interests as covered in Episode 7. We highlight the typical options that a mineral owner is faced with when they receive a forced pooling notice and election letter in the mail. This includes:

- Participating in the well (covered in more detail in Episode 7)

- Leasing

- Making an affirmative election to "non-consent" to the well

- Getting Forced Pooled

Examples discussed are specific to Colorado but many states have similar requirements. Check with your state's oil and gas commission for more information.

In this episode, we talk about what a Working Interest (WI) in Oil & Gas is and what you need to know when thinking about participating in a well.

You Will Learn About: - Potential tax implications - What is a Joint Operating Agreement (JOA) - What does participating in a well mean - Pros/cons of non-operated WI's

In this episode, we answer a listener's question about what to negotiate for and how to evaluate an oil and gas lease. Be sure to check out the show notes for a free leasing resource guide.

In this episode, we talk about what you need to know about selling mineral rights and the typical process that's involved. Be sure to listen to the end because we cover 5 red flags to look for when selling your minerals or royalties.

• Different Approaches Used in Valuing Mineral Rights
• Different Property Types
• The Market Approach (comparable sales)
• The Income Approach (aka Discounted Cash Flow Analysis)
• A rule of thumb you can use to provide a rough estimate of value of some producing minerals.
• We also talk about different factors that go into a mineral rights valuation

• What is a Non-Participating Royalty Interest (NPRI) and when it can be used.
• Selling only a portion vs. selling 100% of your interest
• Long vs. short-term personal & financial goals
• Red flags to look out for (in the fine print of any legal documents)
• and who typically pays for what in a mineral rights transaction.

• Royalty owners claim wider well setbacks would cost them $26 billion

In this Episode, I show you how to calculate your Net Revenue Interest in a well in 3 simple steps. We also cover how to estimate the amount of your Royalty Check.

In this Episode, we talk about the different forms of ownership as it relates to mineral rights and the difference between minerals and royalties. We also talk about ways that ownership is conveyed and the sometimes ignored Non-Participating Royalty Interest and an example of how you could use it.