Changes

===Example 1===

===Example 1===

Assume the Oily Co., lessee, obtains oil and gas leases from I. M. Lucky, lessor, who owns a 3/4 interest in a [[area::20 acre]] tract of land, and from I. S. Rich, lessor, who owns the other 1/4 interest in the tract. Mr. Lucky and Mr. Rich each reserve a 1/8 royalty (cost-free) interest. Oily Co. drills and completes an oil well at a depth above 3000 ft on the leased [[area::20 acre]] tract. The costs and revenue interests are shown in Table 1.

 

[[File:Tinkler__determining-owners-of-oil-and-gas-interests-and-methods-of-conveyance__Table_1.png|thumb|{{table_number|1}}Costs and revenue interests in example 1]]

 

Assume the Oily Co., lessee, obtains oil and gas leases from I. M. Lucky, lessor, who owns a 3/4 interest in a [[area::20 acre]] tract of land, and from I. S. Rich, lessor, who owns the other 1/4 interest in the tract. Mr. Lucky and Mr. Rich each reserve a 1/8 royalty (cost-free) interest. Oily Co. drills and completes an oil well at a depth above 3000 ft on the leased [[area::20 acre]] tract. The costs and revenue interests are shown in [[:Image:[[File:Drive-mechanisms-and-recovery_fig1.png|Table 1]].

===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 [[:Image:Drive-mechanisms-and-recovery_fig2.png|Table 2]].

[[File:Tinkler__determining-owners-of-oil-and-gas-interests-and-methods-of-conveyance__Table_2.png|thumb|{{table_number|2}}Costs and revenue interests of example 2]]

[[File:Drive-mechanisms-and-recovery_fig2.png|thumb|'''Table 2.''' Costs and revenue interests of example 2]]

==Title opinions and title curative==

==Title opinions and title curative==