# Does a UMI in production mean the same as Working Interest?
**URL:** https://www.mineralrightsforum.com/t/does-a-umi-in-production-mean-the-same-as-working-interest/65825
**Category:** Oil and Gas Leasing Help
**Created:** [April 7, 2022, 10:19am UTC](https://www.mineralrightsforum.com/t/does-a-umi-in-production-mean-the-same-as-working-interest/65825 "2022-04-07T10:19:10Z")
**Posts on this page:** 2
**Page:** 1
### Author:  [@Coco\_Johnston](https://www.mineralrightsforum.com/u/Coco_Johnston)
#### Post date: [April 7, 2022, 10:19am UTC](https://www.mineralrightsforum.com/t/does-a-umi-in-production-mean-the-same-as-working-interest/65825/1 "2022-04-07T10:19:10Z")
I was sent a lease that I did not accept, and I returned it with my preferred changes. I never heard back.
Two years later I started getting royalties on the wells involved. The production company suddenly realized they didn’t have a signed lease, so they sent another lease to me, encouraging me to just sign it. I called a lawyer in Texas to ask if this was legal and he said no. He encouraged me to just become a co-owner of the wells.
After some silence and delays, they finally sent me a division order for a UMI payout. Now it’s tax time, and my accountant surmised that, for tax purposes, I am a working interest owner, which means I am taxed 15% more for the income from that lease, as I am a business co-owner. I am not sure I am a working interest owner, since I didn’t put anything down on this lease.
I’m not sure what my position is. Do I need to get liability insurance? Form an LLC? What is this situation called?
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [July 6, 2022, 10:19am UTC](https://www.mineralrightsforum.com/t/does-a-umi-in-production-mean-the-same-as-working-interest/65825/2 "2022-07-06T10:19:15Z")
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