The RRC’s MIPA orders create a bifurcated interest for the unleased mineral owner, royalty AND working interest.
I suspect that the RRC’s administrative order walks a very small diameter tightrope regarding property rights under the Texas Constitution.
It seems as though it might be unconstitutional for a State of Texas agency to force an unwilling lessor to assume risks outside of the tiny universe of the well/unit. I think this is why the MIPA orders explicitly state that working interest expenses can only be captured from the working interest, not from the owner’s royalty.
Unleased mineral owners should not be coerced into accepting bad leases or inadequate bonuses in order to avoid a potentially threatening working interest relationship. This is why the RRC appears to have defanged the working interest. Or maybe I am being tweety bird naive with that projection.