Vogel Law Firm
  • Home
  • Professionals
  • Practice Areas
  • Blog
  • Careers
  • Client Portal
  • Testimonials
  • Contact

call us today
866-771-9930

  • Home
  • Professionals
  • Blog
  • Careers
  • Client Portal
  • Testimonials
  • Contact
  • X Close
CONTACT

BLOG

Update on the Whiting Petroleum Bankruptcy Case for North Dakota Mineral Owners

by rebeccablanshan | Apr 8, 2020 | Bankruptcy

By Caren Stanley

Whiting Petroleum filed for Chapter 11 bankruptcy on April 1, 2020 in the United States Bankruptcy Court for the Southern District of Texas, Case No. 20-32021. In a Chapter 11 bankruptcy case, the debtor continues operations and attempts to restructure its debts as contrasted with a Chapter 7 bankruptcy case in which the debtor ceases operating and its assets are liquidated to pay creditors. Within a week of Whiting’s bankruptcy filing, numerous clients of the Vogel Law Firm that own mineral interests have reported that they did not receive expected royalty checks for March 2020.

As a general rule, bankruptcy debtors are strictly prohibited from paying prepetition debts (i.e., amounts incurred and owing by the debtor prior to the date of the bankruptcy filing) unless there is a specific order of the bankruptcy court allowing for the payment. Typical examples of prepetition debts that may be paid by a debtor, but only with the explicit permission of the bankruptcy court, are employee wages and insurance premiums. In a Chapter 11 restructuring bankruptcy case (such as Whiting Petroleum’s), the debtor is obligated to pay postpetition operating expenses (i.e., amounts incurred after the bankruptcy filing date) in the ordinary course of its business.

On the first day of its bankruptcy case, Whiting filed an emergency motion requesting that it be allowed to pay prepetition royalties (i.e., royalties owing to mineral owners prior to 3/31/20) to mineral owners. Whiting’s rationale for needing to pay mineral owners for prepetition royalties was that it exposed Whiting to enforcement actions by owners of mineral interests for breach of contract, conversion and other claims for damages for breach of oil and gas leases. Additionally, there was a risk that failing to pay royalties may be grounds for terminating an oil and gas lease which would be harmful to Whiting’s restructuring efforts. On April 1, 2020, the bankruptcy judge entered an order allowing Whiting to pay mineral owners for prepetition royalties. This is good news, but ND mineral owners should be cautioned that the order does contain certain language that would allow Whiting to seek disgorgement (return) of the royalties if the payments are deemed improperly made later on in Whiting’s bankruptcy case.

Based on the bankruptcy judge’s order, it is expected that North Dakota mineral owners will be paid for prepetition royalties (incurred before 3/31/20) owed by Whiting in the coming weeks and will also be paid for postpetition royalties (incurred after 4/1/20) in the ordinary course of business.

Disclaimer: These materials are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use of and access to these materials does not create an attorney-client relationship between the Vogel Law Firm and the user or browser. The opinions expressed at or through these materials are the opinions of the individual author and may not reflect the opinions of the Vogel Law Firm or any individual attorney. Under no circumstances shall the Vogel Law Firm have any liability to you for any loss or damage of any kind incurred as a result of the use of the information or your reliance on any information provided.

  • Facebook
  • Twitter
  • LinkedIn

Categories

  • Bankruptcy (3)
  • Business Law (4)
  • Child Custody (1)
  • COVID-19 (28)
  • Criminal Defense (8)
  • Debtor/Creditor (2)
  • Divorce (2)
  • DNR (1)
  • DUI (1)
  • Employer Rights (21)
  • Employment Law (25)
  • Estate Planning (5)
  • Family Law (3)
  • Firm News (31)
  • Immigration (1)
  • Injuries (1)
  • IRAs (1)
  • Life Insurance (1)
  • Paid Leave (2)
  • Personal Injury (5)
  • Premarital Agreements (1)
  • Prenuptial Agreements (1)
  • The North Dakota Employer's Blog (7)
  • Uncategorized (59)
  • Unemployment Insurance (1)
  • Wrongful Death (2)

Archives

  • January 2021 (6)
  • December 2020 (5)
  • October 2020 (1)
  • September 2020 (1)
  • August 2020 (2)
  • July 2020 (2)
  • June 2020 (4)
  • May 2020 (9)
  • April 2020 (12)
  • March 2020 (12)
  • February 2020 (11)
  • January 2020 (2)
  • November 2019 (2)
  • September 2019 (1)
  • August 2019 (3)
  • July 2019 (2)
  • June 2019 (3)
  • May 2019 (2)
  • March 2019 (1)
  • January 2019 (1)
  • December 2018 (1)
  • November 2018 (1)
  • October 2018 (2)
  • September 2018 (2)
  • August 2018 (3)
  • July 2018 (2)
  • June 2018 (4)
  • March 2018 (1)
  • January 2018 (3)
  • October 2017 (1)
  • September 2017 (1)
  • June 2017 (4)
  • March 2017 (1)
  • January 2017 (1)
  • December 2016 (2)
  • October 2016 (2)
  • September 2016 (1)
  • June 2016 (1)
  • May 2016 (5)
  • April 2016 (1)
  • March 2016 (1)
  • February 2016 (2)
  • January 2016 (3)
  • December 2015 (1)
  • November 2015 (1)
  • October 2015 (1)
  • September 2015 (2)
  • July 2015 (1)
  • June 2015 (2)
  • April 2015 (1)
  • January 2015 (1)
  • December 2014 (1)
  • October 2014 (1)
  • August 2014 (1)
  • June 2014 (1)
  • May 2014 (1)
  • October 2013 (1)
  • June 2013 (2)
  • May 2013 (2)
  • January 2013 (1)
  • December 2012 (1)
  • November 2012 (2)
  • October 2012 (1)
  • February 2012 (1)

Recent Posts

  • The North Dakota Employer’s Blog: Enacting Mandatory COVID Vaccine Policies
  • The North Dakota Employer’s Blog: Mask Mandate Update
  • The North Dakota Employer’s Blog: Independent Contractor or Employee?
  • The North Dakota Employer’s Blog – My Employee Stormed the Capitol: Can I fire him for that?
  • The North Dakota Employer’s Blog: What Now? Stepping Away from the Edge
Bg SubscribeSubscribe To This Blog's FeedFindLaw Network

Quality Attorneys. Quality Care.

Ultimately, we measure our success in terms of how we improve the lives of our clients.
We never forget that the most important part in any legal matter is the people involved.

Experience The Vogel Law Firm Difference

Quality legal service starts with contacting Vogel Law Firm. Call 866-771-9930 or submit the form to request a consultation.

Email Us For A Response

Experience The Vogel Law Firm Difference

Quality legal service starts with contacting Vogel Law Firm. Call 866-771-9930 or submit the form to request a consultation.

ECN | Employers Counsel Network
Fellow Litigation Counsel of America
Super Lawyers
Super Lawyers
Multi-Million Dollar Advocates Forum
Multi-Million Dollar Advocates Forum
Listed In Best Lawyers | The World's Premier Guide
ALFA International | The Global Legal Network

Fargo Office

218 NP Avenue
Fargo, ND 58102

Phone: 866-771-9930

Fax: 701-356-6395

Fargo Law Office Map

Bismarck Office

200 North 3rd Street,
Suite 201
Bismarck, ND 58501

Phone: 701-214-4393

Fax: 701-258-9705

Bismarck Law Office Map

Moorhead Office

215 30th Street North
Moorhead, MN 56560

Phone: 218-979-4994

Fax: 218-236-9873

Moorhead Law Office Map

Minneapolis Office

7300 West 147th Street,
Suite 304
Apple Valley, MN 55124

Phone: 952-236-4947

Fax: 952-898-4070

Apple Valley Law Office Map

Grand Forks Office

2825 36th Avenue South,
Suite A
Grand Forks, ND 58201

Phone: 701-203-4156

Fax: 701-864-2748

Grand Forks Law Office Map
  • Follow
  • Follow
  • Follow
Review Us
Employee Email

© 2021 Vogel Law Firm. All Rights Reserved.

Disclaimer | Site Map | Privacy Policy | Business Development Solutions by FindLaw, part of Thomson Reuters