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Owners of oil and gas interests (view source)
Revision as of 18:38, 11 March 2014
, 18:38, 11 March 2014→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:Drive-mechanisms-and-recovery_fig1.png|Table 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:Drive-mechanisms-and-recovery_fig1.png|Table 1]].
{| class="wikitable"
|+ Table 1. Costs and revenue interests in example 1
|-
! || Costs || 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
===Example 2===
===Example 2===