Under terms of the PPI, what share of revenues and operating costs will accrue to Tallgrass at the end of year one?
A. USD 1,620,000 of revenues and zero operating costs
B. USD 1,620,000 of revenues and USD 750,000 in operating costs
C. USD 1,800,000 of revenues and zero operating costs
D. USD 1,800,000 of revenues and USD 750,000 in operating costs
Answer:A
Under terms of the PPI, what share of revenues and operating costs will accrue to Tallgrass at the end of year one?
A. USD 1,620,000 of revenues and zero operating costs B. USD 1,620,000 of revenues and USD 750,000 in operating costs C. USD 1,800,000 of revenues and zero operating costs D. USD 1,800,000 of revenues and USD 750,000 in operating costs
Explanation: A production payment interest (PPI) is a nonworking interest. Therefore zero costs will accrue to