Dore Law - November 2019

Dore Law - November 2019

THE D or É R eport

D ore L aw G roup . net

NOVEMBER 2019

MINERAL LIENS 101

A MINERAL LIEN CAN ‘TRAP’ FUNDS, EFFECTIVELY PREVENTING MONEY FLOW TO THE PROJECT Getting paid can be a challenge because money must trickle down from the top and is exchanged between multiple parties. Money can even be misused before it ever gets to you. However, when you file a mineral lien, it can force this flow of money to stop, and the owner will stop paying its contractor until it gets assurance the claim is paid. In some states, the law requires that the owner withhold funds. The law provides that subcontractors can “trap” funds payable to the contractor in the owner’s hands. The basic principal is that a subcontractor who files a mineral lien is entitled to all amounts due from the owner to the contractor until the claim is paid. When you file a mineral lien in the property records of the county where the property is located, the document will appear on a title search. Anyone who might buy or receive the property after your mineral lien is recorded (and in some states even before the recording) accepts it burdened with your claim. Under most circumstances, this means the property will not be sold, refinanced, or transferred without the mineral lien being paid. A MINERAL LIEN CLOUDS TITLE ON THE PROPERTY

Mineral liens are a valuable and reliable way to assist oilfield service companies in getting paid for services they perform and the materials they furnish on oil and gas properties (including wells and pipelines). Let me give you just a few basics on why you might use this collection tool. MINERAL LIENS INTENSIFY THE SITUATION AND PRIORITIZE YOUR DEBT In some situations, getting an owner or contractor to pay your debt means letting them know you are serious. Filing a mineral lien (or even just sending a notice of intent to file) intensifies your collection efforts and shows the other party involved you are determined. This prioritizes your debt, and you get paid. Oftentimes when working on a project, the owner or contractor is slow to pay simply because they have too many parties to pay, or they do not have the money at that time. It is also common to go unpaid on a project because of a dispute concerning only one invoice. In these cases, the owner or contractor may come up with stories on why they won’t pay, but often, they cave when a mineral lien is filed. That’s because dealing with a mineral lien is expensive and requires lawyers. It can also garner unwanted attention from others involved in the project. PARTIES WILL PAY TO GET RID OF YOU

MINERAL LIENS ARE DIFFICULT TO DISPUTE (IF FILED PROPERLY)

One reason property owners and contractors pay when faced with a mineral lien is because of how difficult they are to challenge if all the technical procedures are met. Thus, if you file your lien properly, it is very difficult to get a judge to invalidate the claim. Additionally, lien laws are typically construed liberally to protect lien claimants. In conclusion, when negotiating a debt, leverage is everything. A valid and timely mineral lien on the property gives your debt security, gets more parties involved, stops the flow of money, and is difficult to dispute. By filing a mineral lien, you are going to significantly increase the chances of your company getting paid because you are creating leverage. Doré Rothberg McKay files more mineral liens than any law firm in the U.S., and we file nationwide. We offer an affordable, fixed-fee service to file most liens. Call if we can help you. -Lisa Rothberg

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EXECUTE STRATEGY AND KILL STAGNANCY

2. BE METHODICAL While you shouldn’t wait for the perfect plan, you shouldn’t be flying in blind, either. You can be too energetic about execution. Make sure everyone involved in a plan knows their responsibilities. Confusion will torpedo any strategy faster than you can say, “Who was in charge of this?” The Harvard

“To me, ideas are worth nothing unless executed ... Execution is worth millions.” –Steve Jobs Anyone can take this advice to heart, whether you’re a stay-at- home parent or the CEO of a Fortune 500 company. Ideas are easy, but no one becomes successful because they had a great idea. Success comes from putting that idea into action. Being able to execute a plan is a skill every business leader needs. Here are three steps to help you improve your execution. 1. DITCH PERFECTION Have you ever watched a behind-the-scenes featurette of your favorite movie? Some of the most successful films were all but unrecognizable in their early phases. In fact, a lot of early concepts are terrible. Look up the original designs for Woody in “Toy Story” to see for yourself. Fortunately, rather than wait for the perfect script, creators executed their visions and make changes as needed. Putting off action in favor of creating the perfect plan or strategy leads to stagnant business. Successful people know that plans take many shapes before they reach their final form. Don’t jump into something without a clear plan, but don’t be afraid to define your strategy as you go. There’s a reason audiences won’t be flocking to theaters to watch the latest galactic adventures of Luke Starkiller this December.

Business Review states, “Having the discipline to organize people, assemble resources, and then generate a plan that others can commit to will collectively improve execution.” 3. EVALUATE, EVALUATE, EVALUATE We’re not saying you should micromanage your team, but you do need to be checking in on a regular basis to evaluate progress on your plan. Schedule monthly or quarterly meetings to go over the strategy. This is where you look for any changes that need to be made and refine the strategy. A smart strategy feels reassuring, but learning to execute a plan is the only way to make progress. The best business plan in the world is worthless if you never follow through.

OIL & GAS BANKRUPTCY TRACKER 2019

(limited to Debtor Liabilities > $10MM)

FILING DATE DEBTOR NAME

COURT

CHAPTER REPORTED LIABILITIES

7/1/2019

Weatherford International

Texas-Southern

11

$1 billion to $10 billion

7/1/2019

Apex Energy

Montana

7

Involuntary

7/11/2019

Silver Creek Services

Pennsylvania-Western

11

$10 million to $50 million

7/11/2019

Drying Facility Assets

Texas-Southern

11

$100 million to $500 million

7/16/2019

Remanant Oil

Delaware

11

$10 million to $50 million

7/16/2019 7/21/2019

HVI Cat Canyon

New York-Southern

11 11

$100 million to $500 million

PES/ Philadelphia Energy Solutions

Delaware

$1 billion to $10 billion

7/31/2019

Matra Petroleum

Texas-Southern

11

$50 million to $100 million

8/2/2019

Epic Companies

Louisiana-Eastern

7

Involuntary

8/7/2019

Halcon

Texas-Southern

11

$1 billion to $10 billion

8/8/2019

Harbor Wind

Colorado

7

$10 million to $50 million

8/9/2019

Furie/Cornucopia

Delaware

11

$100 million to $500 million

8/11/2019

Sanchez/SN

Texas-Southern

11

$1 billion to $10 billion

8/12/2019

Oklahoma Merge

Delaware

11

$50 million to $100 million

8/27/2019

Epic

Texas-Southern

11

$100 million to $500 million

9/2/2019

PetroShare

Colorado

11

$50 million to $100 million

9/11/2019

Columbus Oil & Gas

Michigan-Eastern

11

$50 million to $100 million

9/11/2019

Alta Mesa Holdings

Texas-Southern

11

$1 billion to $10 billion

9/15/2019

Sheridan Holding

Texas-Southern

11

$1 billion to $10 billion

A full list of 2019 oil & gas bankruptcies, including expanded information, is available upon request to the Doré Law Group P.C. The full list has 236 business entities as of Oct. 1, 2019.

NEWS AROUND THE FIRM

Doré Rothberg McKay is continuing to grow. We are aggressively adding staff to better serve our client needs. We are proud of the two newest faces around the firm. Allyson Johnson is a third-generation lawyer who grew up in San Antonio before moving to Houston and earning her law degree at South Texas College of Law. Her main area of practice is bankruptcy, and she clerked for Chief U.S. Bankruptcy Judge David Jones. Allyson loves finding new restaurants and traveling to new places. Don’t we all. Sarah Siminic has been a paralegal for over 10 years working in litigation, estate planning, and transactional law. She grew up in the Katy area where her dad is an attorney, and she graduated with a B.S. from the University of Houston. As a new mom in 2019, Sarah is plenty busy these days. The firm now boosts a dozen lawyers with 100-plus years of combined legal experience. Our diverse backgrounds, from engineer to CPA, help us help you.

Allyson Johnson

Sarah Siminic

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GREEN BEANS WITH GINGER AND GARLIC

Inspired by Food & Wine Magazine

Turkey is, for the most part, a healthy and lean protein. Thanksgiving sides, on the other hand, tend to be a little more indulgent. This year, eschew the classic, creamy green bean casserole in favor of this lighter, healthier, and altogether tastier option.

INGREDIENTS

2 lbs whole green beans, ends trimmed 6 tbsp extra-virgin olive oil 2 garlic cloves, thinly sliced

1/2 tsp ground ginger 1 tsp crushed red pepper

•

• • •

Kosher salt, to taste

• •

INSTRUCTIONS

1. Bring a large pot of salted water to a boil. To the side of the stove, prepare a large bucket of ice water. 2. Cook beans in boiling water for 4 minutes. Immediately transfer to ice water. Drain and pat dry. 3. In a large skillet, heat oil over medium-high heat. Add garlic and cook until fragrant, 30 seconds. Stir in ground ginger and crushed pepper. Add green beans. 4. Cook together for 2–3 minutes. 5. Transfer to plate and serve.

APPLES PIE

CROPS THANKSGIVING HOLIDAY FALL

SCARECROW CHILLY SWEATER

PUMPKIN HARVEST

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1 2

Mineral Liens 101

Execution Is Greater Than Strategy

Oil & Gas Bankruptcy Tracker 2019

3 4

News Around the Firm

Green Beans With Ginger and Garlic

The Gift of Giving

CELEBRATING GIVING TUESDAY SUPPORTING THE PEOPLE YOU BELIEVE IN November is usually all about Thanksgiving, but it isn’t the only holiday that encourages generosity. Giving Tuesday is a phenomenal celebration in which millions of people from across the globe are inspired to spend 24 hours giving back to the communities they love. ORIGIN AND GOAL GIVING Tuesday is celebrated every year on the Tuesday following Thanksgiving, and this year, the holiday lands on Dec. 3! It was established in 2012 by the United Nations Foundation and New York’s 92nd Street Y as a response to consumer-driven holidays like Black Friday and Cyber Monday. The purpose of the holiday was to spread the spirit of giving, not only for the people in our nation but individuals across the world. The goal is “to create a massive wave of generosity that lasts well beyond that day and touches every person on the planet.” TECHNOLOGY AT ITS BEST Through the use of social media and technology, the organization hopes to encourage and spread generosity on a global scale using the hashtag #GivingTuesday. The website states that “... technology and social media could be used to make generosity go viral; that people fundamentally want to give and talk about giving.” Through massive social media platforms like

Facebook and Twitter, the individuals and companies participating in Giving Tuesday can spread their missions and messages all over the world, encouraging others to do the same. HOW YOU CAN CELEBRATE Now is the perfect opportunity to support your community and the causes you believe in. The best part of this holiday is that “giving” doesn’t just refer to donating money. People can give back by volunteering their time to help a nonprofit business, donating goods and food, or just buying a stranger some lunch. Even the smallest actions can have the biggest impact. If you’re interested in participating in Giving Tuesday, get together with your friends, family, sports team members, or neighbors to brainstorm on how you can give back. To learn more about how you can participate, visit GivingTuesday.org .

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