Zachary Ellis, Commercial Credit Group, responds to several news stories about banks seizing assets from small businesses connected to the oil and gas industry.
Ellis continues saying in some areas of Shale Play USA he is hearing the words “fire sale” and “closing shop” as more companies are getting left out of the Payroll Protection Program and other CARES Act subsidies.
Factoring and credit scores are also discussed in the interview. Ellis says more and more people are starting to inquire and pull the trigger on alternative financing because of the flexibility and mobility of the loans.
Thomas Ciarlone, Kane Russell Coleman Logan, discusses some of his COVID Shutdown and coronavirus concerns in regards to lease terminations, shut in wells and several other topics involving contractual themes. Ciarlone comments on how the idea of government controlled oil supply would impact mineral owners and lease holders.
The Force Majeure issue is also talked about in the interview. Ciarlone pontificates whether the language will be part of the argument or if certain areas of contract will be forgiven. Without knowing the future or individual contracts, Ciarlone navigates through the topic of force majeure and how it will impact the oil and gas industry, as well as the insurance industry.
Temporary cessation of production, mineral lease payments, custom lease forms, Dallas Bar Association and termination talk are also topics of discussion.
The Crude Life Podcast can be heard every Monday through Thursday with a Week in Review on Friday.
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