Question
Mr. Stephens sold the surface rights and retained the mineral rights in some land in Texas. He leases the land to Juniper Oil Company, reserving
Mr. Stephens sold the surface rights and retained the mineral rights in some land in Texas. He leases the land to Juniper Oil Company, reserving 1/5 royalty. During 2018, Juniper Oil makes the following assignments:
(1) to Fisher Petroleum, an ORI of 1/7 of Juniper's interest,
(2) To Scott Bank, a production payment interest of 45,000 barrels of oil to be paid out of 1/4 of the working interest's share (i.e. Wilson gets 1/4 of the production until it receives a total of 45,000 barrels)
(3) to Thompson Oil, a joint working interest of 1/3 after giving consideration to assignments to Fisher Petroleum and Scott Bank.
Assuming 90,000 BBLs what is Juniper Oil's share of production? Also, assuming 90,000 BBLs what is Fisher Petroleum's share of production?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started