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3) A lease broker, Z, obtains lease for 10% royalty. Z sells 100% to A, retaining 2.5% overriding royalty interest, A sells 30% to B,

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3) A lease broker, Z, obtains lease for 10% royalty. Z sells 100% to A, retaining 2.5% overriding royalty interest, A sells 30% to B, 40% to C. State the definitions of Working Interest and Net Revenue Interest, and compute ownership interests of each party. (15 pts) Working Interest: Net Revenue Interest: Working Interest | Net Revenue Interest Party Landowner Broker 7 Company A Company B Company C

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