The Klingons and the Romulans own two adjacent tracts of land. Each tract has a surface area of 4,000 acres. During a recent shoot-out between the families, crude oil came bubbling to the surface where a phaser blast entered the ground. A petroleum geologist determined that an underground rock formation that extended under both tracts of land contained a substantial amount of oil. The formation was estimated at 800,000 acre feet of volume, of which 600,000 acre feet were under the Romulans’ tract of land.

The Klingons and the Romulans received an offer to buy the mineral rights for $8.5 million provided that they can agree on how much of the purchase price should be allocated to each family.

Required Form two groups to develop a solution to the allocation problem.

a. Asa Klingon, what basis would you recommend for allocating the purchase price? What arguments would you use to support your claim?

b. Asa Romulan, what basis would you recommend for allocating the purchase price? What arguments would you use to support your claim?

c. Come together to find a joint solution to the allocation problem (not involving the use of phasers