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RELATED PARTY TRANSACTIONS
12 Months Ended
Sep. 30, 2018
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS
 
Kaupulehu Developments is entitled to receive payments from KD I and KD II. KD I and KD II are part of the Kukio Resort Land Development Partnerships in which Barnwell holds an indirect non-controlling ownership interest accounted for under the equity method of investment. The payments that Kaupulehu Developments is entitled to receive are contingent residual payments resulting from Kaupulehu Developments' sale of its leasehold interests in Increment I and Increment II in 2004 and 2006 to KD I's and KD II's predecessors in interest, respectively, which was prior to Barnwell’s affiliation with KD I and KD II which commenced on November 27, 2013, the acquisition date of our ownership interest in the Kukio Resort Land Development Partnerships.
 
During the year ended September 30, 2018, Barnwell received $1,645,000 in payments, of which $1,000,000 was related to the 50% of distributions otherwise payable from KD II to its members after the members of KD II received distributions equal to the original basis of capital invested in the project, up to $8,000,000. The remaining $645,000 in payments was due to percentage of sales payments from KD I from the sale of three lots within Phase II of Increment I.

During the year ended September 30, 2017, Barnwell received $2,003,000 in percentage of sales payments from KD I and KD II from the sale of two lots within Phase II of Increment I and one lot within Increment II. In fiscal 2017, the members of KD II received cumulative distributions equal to the original basis of capital invested in the project after which Kaupulehu Developments received $2,500,000 during the year ended September 30, 2017.

Barnwell has a compensation-based gross overriding royalty arrangement with a Canadian corporation owned and controlled by Barnwell of Canada’s President and Chief Operating Officer. The overriding royalty is based on 1% of the gross revenues received by Barnwell of Canada from certain oil and natural gas wells drilled or working interests acquired as specified in the underlying agreements. As of September 30, 2018, the estimated accrued value of this arrangement based on agreed-upon wells drilled is approximately $53,000, which is reported in “Accrued compensation” on the Consolidated Balance Sheet. This amount may change in the future depending upon any future wells drilled or working interests acquired that are included in the arrangement.