Oil and Gas Working Interests. A working interest in an oil or gas property is one that is burdened with the cost of development and operation of the property, such as the responsibility to share expenses of drilling completing or operating an oil and gas property, according to working or operating mineral interest in any tract or parcel of land. Rights to overriding royalties, production payments, and the like do not constitute working interests because they are not burdened with the responsibility to share expenses of drilling, completing, or operating oil and gas property. Likewise, contract rights to extract or share in oil and gas, or in the profits from extraction, without liability to share in the costs of production do not constitute working interests.
An interest created by the execution of an oil and gas lease.
In oil and gas, a working interest is the exclusive right to drill for oil or gas on a lease, paying 100% of the cost and receiving the revenue (less the royalty interest agreed to with the owner of the lease). The holder of the working interest can subdivide revenue interests from his working interest and transfer or sell them.
a leasehold interest which allows the lessee the right to search for and produce oil and gas on a parcel of land and receive a portion of the proceeds of the oil and gas produced
The operating interest entitling the holder, at his or its expense, to conduct drilling and production operations on the property and to receive the net revenues from such operations.
The interest in an oil or gas lease that gives the owner the right to drill, produce and conduct operating activities on the property. The working-interest owner is entitled to a share of the production, subject to royalties, costs and risks.
The interest that provides its owners the right to explore for and produce oil and gas. It is a measurement, as a percentage, of the proportion of the costs of exploration and production borne by the working interest's owner. For example, working interest could be 1.5% for a 1 unit subscription.
The ownership interest held in a property that indicates the owners’ share of obligations, such as costs associated with the property, as well as the owners’ share of the benefits, such as production revenue, after deduction of royalties.
The operating interest in an oil and gas lease.
Direct participation with unlimited liability in a drilling program (vs. Limited Liability in a Limited Partnership).
The cost-bearing ownership share of an oil or gas lease.
An operating interest in oil and gas in place that is burdened with the responsibility and cost of developing and operating the property.