The total amount of compensation of all kinds to the sponsor should be reasonable in the light of the nature of the exploration and development proposed, the nature of the services to be provided by the sponsor and the identity of the participants. A landowner's royalty or an overriding royalty or other interests paid to persons unconnected with the program as consideration for the acquisition of properties for the program shall not be deemed to be sponsor's compensation.

Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25140, Corporations Code.

History

1. Editorial correction adding Note filed 11-8-82 (Register 82, No. 46).