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Not for sure. We are missing the crucial bit of information on how much royalties and over what period of time the school district secured rents. Here's some b

• throwaway_jobs 6y ago
  The real question would be how much did the owners of these oil companies pocket before declaring bankruptcy. It’s exactly as the commenter says...taxpayers fund schools that buy land; the school leases mineral/oil rights to private companies (Likely self dealing with these leases too); private energy companies take the public land resources and pay themselves profits leaving the entity insolvent and then files bankruptcy protection; taxpayers Are left liable. What incentive does an oil company have to not liquidate the company after they exhaust the well and seek bankruptcy protection? In other words say it cost $10M to properly close up the well, you have that in the bank but you pay it to the owners as profit instead of covering the well, company is now insolvent and receives protections. Why would any oil company not do this on public lands? Do you think these owners disappeared or just set up new companies and got new leases on new public lands rinse and repeat?
  • heavenlyblue 6y ago
    You make the companies put that money upfront before starting the well. If that money no longer exist during liquidation the owner goes to prison for fraud.