If anyone in the US has lived in oil country, these stories may have a familiar ring to them. There's a common law concept of unjust enrichment. Land guy contacts property owner. "Hey, we think there's oil under your property and we'd like to give you a generous $100,000 for your mineral rights" landowner says no. Land guy comes back and says "My company would like to offer you a 1/64th stake in a producing well if you lease us your mineral rights" Landowner still says no. Land guy may be authorized to keep negotiating up to at most a 1/16th (I've seen higher but rarely). Homeowner still says no. Ten years later, landowner is contacted by an oil company lawyer. "We accidentally drilled into the oil deposit under your property, but I'm prepared to offer you a cash settlement for the oil." Landowner says "No, that my oil! I'm entitled to be compensated for all of it." Lawyer says "Ok, we'll see you in court." Landowner lays out their claim before the judge and the judge agrees that the landowner should be compensated for all of the oil. Then the oil company, in turn, produces the cost of developing the well, the cost of drilling the well and the 10-year cost of operating the well. This of course will be a very high figure. This is where unjust enrichment comes into play. For the landowner to recover the cost of the oil "accidentally" removed from their property, they are in turn required to reimburse the oil company for their costs. Of course, the landowner will not be able to afford those costs, so the judge will point to the oil company's offer to the landowner of a cash settlement and or a stake in the oil well. The judge will use other "like" oil leases in the area as go-by to determine what's "fair". The landowner will likely go home with a cash settlement and a small stake in the well, typically about what the land guy had offer them 10 years ago. I am not sure if this still goes on, but I know it did as late as the 80's. All this makes me wonder if the real estate developers have taken a page out of the oil companies' playbook.
