An oil co. wants drill on my fathers property and pay him 3/16 of the gross proceeds . What is this in $'s.

I am afraid this company will try and take advantage of my father and I want to make sure they are going to pay him a fair amount in this contract. Should he seek legal counsel?An oil co. wants drill on my fathers property and pay him 3/16 of the gross proceeds . What is this in $'s.
any amount of revenue is better than none - you father doesn;t even have to do anything - almost 20% of the gross proceeds seems pretty good IF they actually strike oil. - At current prices - say $100 per barrel - if they even get just 5 barrels per day out of the ground - that's $3000/month income for your fatherAn oil co. wants drill on my fathers property and pay him 3/16 of the gross proceeds . What is this in $'s.
Have they made an offer in writing?? Then take it to a lawyer to get a legal opinion.
It sounds like a rip off to me.


I would want 1/2, or at least 1/3 after all the mineral rights are his aren't they?


If not, then 3/16 is fair.
Yes, contact a lawyer.





It will depends on how much oil is available there.