» The oil company is selling the production from my property at a very low price.  What can I do?

The oil company is selling the production from my property at a very low price. What can I do?

An oil company has a duty to reasonably market production from a well. Generally speaking, the company has a duty to market the production with due diligence and obtain the best price reasonably possible as would a reasonably prudent operator under the same or similar circumstances, having due regard both for the interest of the royalty owner and the oil company. Sometimes, oil companies will sell production to captive subsidiaries at rates lower than market rate. In such circumstances and other circumstances where production is being sold below market rates, you may be entitled to recover damages from the oil company.

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