§ 30-5-304 — Definitions

Wyoming § 30-5-304

• Jurisdiction: Wyoming
• Title 30: Mines and Minerals
• Ch. 5: OIL AND GAS
• Art. 3: PAYMENT FOR INTERESTS IN PRODUCTION

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(a) As used in this act:
(i) "Lessee" means the person entitled under an oil
and gas lease to drill and operate wells, paying the lessor a
royalty and retaining the remainder, known as the working
interest. The lessee pays all costs of production out of his
interest, the lessor's interest being free and clear of all
those costs;
(ii) "Lessor" means the mineral owner who has
executed a lease and who is entitled to the payment of a royalty
on production, free and clear of the costs of production;
(iii) "Operator" means a person engaged in the
business of drilling and producing wells for oil and gas;
(iv) "Other nonworking interest" means any interest
in an oil and gas lease or well which is not a royalty,
overriding royalty or working interest;
(v) "Overriding royalty" means a share of production,
free of the costs of production, carved out of the lessee's
interest under an oil and gas lease;
(vi) "Costs of production" means all costs incurred
for exploration, development, primary or enhanced recovery and
abandonment operations including, but not limited to lease
acquisition, drilling and completion, pumping or lifting,
recycling, gathering, compressing, pressurizing, heater
treating, dehydrating, separating, storing or transporting the
oil to the storage tanks or the gas into the market pipeline.
"Costs of production" does not include the reasonable and actual
direct costs associated with transporting the oil from the
storage tanks to market or the gas from the point of entry into
the market pipeline or the processing of gas in a processing
plant;
(vii) "Royalty" means the mineral owner's share of
production, free of the costs of production;
(viii) "Working interest" means the interest granted
under an oil and gas lease, giving the lessee the right to work
on the leased property to search for, develop and produce oil
and gas and the obligation to pay all costs of production;
(ix) "This act" means W.S. 30-5-301 through 30-5-305.