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Alienergy Co. leases a property from Mr. Brown, who retains a 1/8 royalty interest. Alienergy Co. subsequently conveys its interest to Cabby Oil Inc. but

Alienergy Co. leases a property from Mr. Brown, who retains a 1/8 royalty interest. Alienergy Co. subsequently conveys its interest to Cabby Oil Inc. but retains 1/6 overriding royalty interest. In general, the portion of costs that Alienergy Co. should share is:

  1. 0.
  2. 1/8.
  3. 1/6.
  4. 7/48.

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