Mr. Stephens sold the surface rights and retained the mineral rights in some land in...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Mr. Stephens sold the surface rights and retained the mineral rights in some land in Texas. He leases the land to Juniper Oil Company, reserving 1/5 royalty. During 2018, Juniper Oil makes the following assignments: (1) to Fisher Petroleum, an ORI of 1/7 of Juniper's interest, (2) To Scott Bank, a production payment interest of 45,000 barrels of oil to be paid out of 1/4 of the working interest's share (i.e. Wilson gets 1/4 of the production until it receives a total of 45,000 barrels) (c) to Thompson Oil, a joint working interest of 1/3 after giving consideration to assignments to Fisher Petroleum and Scott Bank. Assuming 90,000 BBLs what is Scott Bank's share of production?
I need to know what is Scott Banks share of production please show work.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
