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 owner's 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.