Working Interest Owner and NPRI owners

Oil and Gas Leasing Help
1

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

2

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.

3

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

4

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

5

Rusk County, Texas.

6

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