Sherwood Field, located in East Texas, is jointly owned by Kelly Company (60%) and Tiger Company (40%). Kelly, who is the operator, estimates that gas production during July will be 40,000 Mcf. Kelly Company makes confirmed nominations of 30,000 Mcf and Tiger Company makes confirmed nominations of 10,000 Mcf to a pipeline company.

Actual July production totals 50,000 Mcf. Assume that the appropriate price is \($1.80\) per Mcf.

REQUIRED: 

Determine the number of Mcf of actual production to be allocated to each party and each producer’s resulting over- and underdeliveries to the pipeline using:

a. the confirmed nominations method, and

b. the entitlements method.