Miss Hawkins owns the mineral rights only in a property in Garvin County, Texas. She leases...
Miss Hawkins owns the mineral rights only in a property in Garvin County, Texas. She leases the property to Garth Petroleum, reserving a 1/5 royalty. Garth Petroleum drills a successful well and begins producing oil. Revenue from the first year of operations totaled $30,000 and costs of development and operation totaled $175,000. 1. How much revenue will each party receive? 2. How much of the costs will each party pay?