NON-OPERATING INTEREST definition

NON-OPERATING INTEREST means an interest in oil and gas property that does not entitle its holder(s) to participate in decisions concerning the testing, drilling, completion, operation or abandonment of the property and all such decisions are controlled by the holder(s) of the Working Interest in such property. Non-Operating Interests include Royalty Interests, Overriding Royalty Interests, Net Profits Interests, and Production Payments, as well as oil payments, calls on production and other miscellaneous interests similar to the foregoing. It would not include Working Interests or Mineral Interests not subject to an oil and gas lease since these interests bear a share of the cost and risk of testing, drilling, completing, operating and abandoning of the property.
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Related to NON-OPERATING INTEREST

  • Working Interest means an interest in oil and/or gas in the unit area by virtue of a lease, operating agreement, fee title, or otherwise, including a carried interest, the owner of which is obligated to pay, either in cash or out of production or otherwise a portion of the unit expense.

  • Participating Interest is defined in Section 1.2(d) hereof.

  • Voting Interest With respect to any provisions hereof providing for the action, consent or approval of the Holders of all Certificates evidencing specified Voting Interests in the Trust Estate, the Holders of each Class of Certificates will collectively be entitled to the then applicable percentage of the aggregate Voting Interest represented by all Certificates equal to the ratio obtained by dividing the Principal Balance of such Class by the sum of the Class A Principal Balance and the Class B Principal Balance. Each Certificateholder of a Class will have a Voting Interest equal to the product of the Voting Interest to which such Class is collectively entitled and the Percentage Interest in such Class represented by such Holder's Certificates. With respect to any provisions hereof providing for action, consent or approval of each Class of Certificates or specified Classes of Certificates, each Certificateholder of a Class will have a Voting Interest in such Class equal to such Holder's Percentage Interest in such Class.

  • Working interest owner means a person or the estate of a person who owns an interest in oil and/or gas in the unit area by virtue of a lease, operating agreement, fee title, or otherwise, including a carried interest, the owner of which is obligated to pay, either in cash or out of production or otherwise a portion of the unit expense. “Working interest owner” does not include an unleased mineral owner.

  • qualifying interest means the aggregate interest, discount or original issue discount receivable by a resident individual in any year of income