I’m asking this question for a family member who has signed a contract a year ago. How can the drill company’s true profit from the production be determined? Since the contract, several actions have occured to lead me to believe the company will lie and underpay if possible. Thanks for any insight you can provide.
I am curious.
Does your relative have a net profits interest?
A regular royalty has nothing to do with profit.
Payout on forced pooling issues will generally require a monthly accounting.
Without an audit, there is no way to determine profit on a particular well. There are so many costs involved, not the least of which is office overhead.