/1 E View Policies Current Attempt In Progress Sage Drilling Company has leased property on which oil has been discovered. The oil wells on this property produced 19,400 barrels of oll during the past year that sold at an average sales price of $58 per barrel. Total oil resources of this property are estimated to be 254,000 barrels. The lease provided for an outright payment of $520,700 to the lessor (owner) before drilling could be commenced and an annual rental of $32.980. A premium of 5% of the sales price of every barrel of oil removed is to be paid annually to the lessor. In addition Sage (lessee) is to clean up all the waste and debris from drilling and to bear the costs of reconditioning the land for farming when the wells are abandoned. The estimated fair value, at the time of the lease, of this clean-up and reconditioning is $30,480. From the provisions of the lease agreement, compute the cost per barrel for the past year, exclusive of operating costs, to Sage Drilling Company. (Round answer to 2 decimal places, eg 4.89) Total cost per barrel $ eTextbook and Media. Save for Later Attempts: 0 of 4 used Submit