The following transactions occurred during 2018:

a. Joyner Oil Company and Brown Oil Company jointly purchased a 2,000 acre lease in Oklahoma for \($60,000\). Joyner has a 60% WI, and Brown, a 40% WI. Joyner will be the operator of the lease.

b. Rayburn Oil Company owns 100% WI in a lease (with a 1/6 royalty interest) with capitalized costs of \($600,000\). Rayburn assigns the working interest to Fugate Oil for \($800,000\) and keeps a 15% overriding royalty interest.

c. Rayburn Oil Company owns 100% WI in a lease (with a 1/6 royalty interest)

in Oklahoma and transfers a 1/16 overriding royalty interest to the controller of the company.

d. Sells Oil Company owns the working interest in a lease in Nueces County, Texas and assigns 40% of the working interest to the Knight Oil Company in return for Knight drilling and equipping a well on the property. After the well is completed, Sells and Knight will share revenues and costs.

e. Knight Oil Company assigns the working interest in Lease A to Sells Oil Company for \($700,000\), and in return, Knight will receive 20,000 barrels of oil from the first 30% of Sells’ production.

f. Sells Oil Company sells a production payment interest of 20,000 barrels of oil for

\($300,000\), which is to be paid from the first 30% of production.

g. Cantu Oil Company owns a working interest in Harris County, Texas. Cantu transfers 60% of the working interest to Stephens Oil Company in exchange for Stephens bearing all costs of drilling, completing, and operating the property until payout. Stephens Oil Company will receive 100% of the working interest’s share of revenue until drilling and developing costs have been recovered, at which time the property will be operated as a joint property.

REQUIRED: Identify the following types of interests created by the 2018 transactions. If the interest is an overriding royalty or a production payment interest, also state whether it is a retained or carved-out interest.