Question
John Thornton owns 320 mineral acres in Gray County, Texas.On September 1, 2019 Johnson enters into a 5-year lease agreement with Summit Oil Company (Summit),
John Thornton owns 320 mineral acres in Gray County, Texas.On September 1, 2019 Johnson enters into a 5-year lease agreement with Summit Oil Company ("Summit"), reserving 1/4 interest. On January 1, 2020 Summit made the following assignments:
1.To Lyla Williams, an ORRI of 1/8
2.To Denise Brown, a production payment of 5,000 BBLs of oil to be paid out of 1/5 of the working interests' share of production.
3.After considering the above assignments, to Juniper Oil LLC a joint wokring interest of 10%
A.Prepare the decimal interests assigned to each party.
B.Assuming 30,000 gross BBLs of oil, calculate the nubmer of barrels each party would receive.
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