> So let's say that the total gross proceeds for any given year > is $110M, and expenses incurred by TPL were $5M. The > distribution of the proceeds will be:
> 0. Original = $110M > 1. Expenses (TPL)= ($5M) > 2. PTSC (10% or max $10M)= (10M) > 3. NET BALANCE = $95M > 4. TPL (15% of Net)= ($14.25M) > 5. NET BALANCE = $80.75 > 6. 50%/50% split = $40.375 to PTSC and to TPL. > TOTAL DISTRIBUTION TO TPL = $59.625. > TOTAL DISTRIBUTION TO PTSC = $50.375. ______________________________________________________________
You can write this down in a general form. Looking at the simplest situation first, a minimum of $100M so PTSC is maxed out at $10M, and the Expenses are static at $5M, we can write:
y = (x - 15)*0.425 + 10
where y is what PTSC gets, and x is the Original amount. The Percentage to PTSC is something that people have been discussing, and we can graph that out easily as y*100/x
y-axis is %, and x-axis is in Millions
The Limit as x -> Infinity is easy to calculate, it's 42.5%. At the minimum, $100M Original, you get 46.125%.
This simple model assumes a minimum of $100M and a fixed $5M for Expenses. I could write down a function for an Original amount less than $100M (need a mix of Step Functions, etc.), and a guess for a variable value for Expenses, but...why? lol.