Libby Oil Company owns 100% of the working interest in a lease that has a 20%

royalty interest. The royalty interest owner is Mr. Heagy. Needing additional funds to develop the property, Libby sold Maxx Company 100,000 barrels of oil for a consideration of $8,000,000. The oil is to be paid out of the first 30% of the working interest’s share of production. During the first four years of production, 180,000 barrels are produced each year.

REQUIRED: Determine how many barrels of oil does each interest receive in each of the first four years?