In comparing the sales method with the entitlement method for producer gas imbalances:

A: Under the sales method the working interest owner records revenue only when gas is produced and sold on the owners behalf.

B: Under the sales method the working interest owner records revenue based on its pro rata perentage regardless whose purchaser takes the gas.

C: Under the entitlement method the working interest owner may have to adjust its share of reserves based on over or undertaken gas.

D: The Securities and Exchange Commission approves only the entitlement method.