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If a Non-Operator Working Interest Owner does not execute a lease, can the Non-Participating Royalty Interest Owners become Non-Operator Wirking Interest Owners, too?

Thanks very much for responding to this inquiry!!!

Ralpr

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You can be:  a royalty owner or an unleased royalty owner and a working interest owner too.  I recommend that you never become a working interest owner due to the UNLIMITED risk.  Hopefully, that answers your question.

Thanks for your reply, Mr. Malone. A recent case in court said that a Non-Operator Working Interest Owner was limited in their liability - which mitigates some risk. I think it depends on how much involvement a Non-Operator Working Interest Owner is willing to take on and financial interests. The idea of having a LLC to have banking accounts with on all proceeds from a Non-Operator Working Interest makes it compelling...

Ralpr

What's the easiest, least expensive way to cease being a working interest owner of an inherited interest?

In what state is the interest located?

If you want to cease being a working interest owner, see if you can sell your ownership to the operator; however, they will most likely try to buy it cheap from you.  Good luck

Like they said, selling is likely your best option. I know some companies who purchase non-op working interests, so send me a message and we can discuss further.

Rusk County, Texas.

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