Manahan-Type Carried Interest Law and Legal Definition

Manahan-type carried interest is a sort of transaction where the owner of a lease assigns all the working interest to another person. Manahan-type carried interest is usually applied to oil and gas law. In this type of case, the assignor has a reversionary interest in part of working interest. The assignee can take up costs of drilling and development from the assignor and assignor can use the reversionary interest once the assignee has recovered the specified costs during the payout period.