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Line 83: − [[File:Drive-mechanisms-and-recovery_fig2.png|thumb|'''Table 2.''' Costs and revenue interests of example 2]]+ + + + + + + + + + + + + +
Owners of oil and gas interests (view source)
Revision as of 18:41, 11 March 2014
, 18:41, 11 March 2014→Example 2
===Example 2===
===Example 2===
Assume the Oily Co. sold the deep rights to the leases in the [[area::20 acre]] tract to the Gassy Co. with the Oily Co. retaining a 5% overriding royalty interest (ORRI). The Gassy Co. obtained an oil and gas lease covering a 5/8 interest from B. A. Winner, lessor, who retained a 1/5 royalty on the [[area::300 acre]] tract adjoining the [[area::20 acre]] tract. The OPM Co. owned a lease obtained from Gotta Fortune, lessor, on the other 3/8 interest in the [[area::300 acre]] tract. The Fortune lease provided for a 1/5 royalty,but Gotta had sold 1/2 of her royalty to Fast Buck. All four leases authorized pooling, which allowed the Gassy Co. and the OPM Co. to pool their interests in the [[area::20 acre]] leases with the 300 acre leases, creating a [[area::320 acre]] unit on which the companies successfully drilled and completed a gas well on the unit. The costs and revenue interests of the parties in this unit are shown in Table 2.
Assume the Oily Co. sold the deep rights to the leases in the [[area::20 acre]] tract to the Gassy Co. with the Oily Co. retaining a 5% overriding royalty interest (ORRI). The Gassy Co. obtained an oil and gas lease covering a 5/8 interest from B. A. Winner, lessor, who retained a 1/5 royalty on the [[area::300 acre]] tract adjoining the [[area::20 acre]] tract. The OPM Co. owned a lease obtained from Gotta Fortune, lessor, on the other 3/8 interest in the [[area::300 acre]] tract. The Fortune lease provided for a 1/5 royalty,but Gotta had sold 1/2 of her royalty to Fast Buck. All four leases authorized pooling, which allowed the Gassy Co. and the OPM Co. to pool their interests in the [[area::20 acre]] leases with the 300 acre leases, creating a [[area::320 acre]] unit on which the companies successfully drilled and completed a gas well on the unit. The costs and revenue interests of the parties in this unit are shown in Table 2.
{| class="wikitable"
|+ Table 2. Costs and revenue interests in example 2
|-
! || Costs (%) || Multiplication Factors (%) || Revenue (%)
|-
| Oily Co., lessee || 100.00000 || 87.50000
|-
| I. S. Lucky, lessor #1 (3/4 of 1/8 royalty) || 0 || 9.37500
|-
| I. S. Rich, lessor #2 (1/4 of 1/8 royalty) || 0 || 3.12500
|-
| TOTALS || 100.00000 || 100.00000
|}
==Title opinions and title curative==
==Title opinions and title curative==