Hays, Bush, and King signed a lease agreement with Big Pink, the owner of the mineral rights.
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Hays, Bush, and King signed a lease agreement with Big Pink, the owner of the mineral rights. Big Pink received a 1/7 royalty interest. The companies’ working interests are 50%, 30%, and 20%, respectively. The companies signed an operating agreement designating Hays as the operator of the lease. Assuming revenues of \($42,000\) and costs of \($14,000\) the first year of operations, determine how much each party will receive in revenue and pay in costs the first year of operations.
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Fundamentals Of Oil And Gas Accounting
ISBN: 9781593701376
5th Edition
Authors: Charlotte J. Wright, Rebecca A. Gallun
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