My Dad left me with 12 acres and they are going to drill for oil: how much can you get an acre...what could be the pay off if they strike.
2007-02-23 18:55:01 · 1 answers · asked by Anonymous in Science & Mathematics ➔ Earth Sciences & Geology
it has nothing to do with the size of land its how much oil they find. You are assuming they will find some oil although 12 acres is a small area and they might not find anything. who owns the rights to the oil all depends on which country you are in and what the contract you have signed.
in uk petroleum products are the property of the state (along with radioactive minerals) gold and silver is owned by the crown and other minerals are owned by people who have applied for rights which the same plot of land can have multiple claims for diff minerals at different levels - very complex
Oil in US i think is a bit more straight forward as its owned by land owner, but you will still have to pay royalty tax.
the basic answer is the exploration company will find if there is any oil, which will determine if they can extract it and then you will know how much you will get in terms of income. check your contract and land/mineral rights through a lawyer though!
2007-02-24 04:05:28 · answer #1 · answered by Kev P 3 · 0⤊ 0⤋