Legal Definitions - nonexecutive right

A nonexecutive right in the oil and gas industry refers to a mineral interest that does not give the holder the right to lease the property. This means that the holder of a nonexecutive right cannot make decisions about drilling or exploration on the property.

Examples of nonexecutive rights include royalty interests and nonexecutive mineral interests. A royalty interest is a share of the revenue generated from the production of oil or gas on a property. The holder of a royalty interest does not have the right to make decisions about drilling or exploration, but they do receive a portion of the profits. A nonexecutive mineral interest is a share of the mineral rights on a property, but the holder does not have the right to lease the property for drilling or exploration.

These examples illustrate the definition of nonexecutive right because they show that the holder of such a right does not have the power to make decisions about drilling or exploration on the property. Instead, they receive a share of the profits generated from the production of oil or gas on the property.