manahan type carried interest
Manahan-type carried interest. Oil & gas. A transaction in which the owner of a lease assigns all the working interest to someone else — who takes on specified costs of drilling and development — and the assignor retains a reversionary interest in part of the working interest, which reverts to the assignor once the assignee has recovered the specified costs during the payout period. Manahan Oil Co. v. Commissioner, 8 T.C. 1159 (1947). [Cases: Mines and Minerals 74. C.J.S. Mines and Minerals § 308.]
