Question As an additional question to my my previous one a " dormant " oil lease . The working interest expense comes from routine maintenance: such as electrical billing , etc . The wells are not operating currently.
Answer OK. I am assuming that you are the working interest owner in this situation. Part of the answer depends on your agreement with the operator. Most leases automatically terminate if production ceases, and consequently, the terms that govern cessation of production from the JOA or the lease would apply. I would suggest that you contact the operator and find out why electricity is continuing to be used if production has ceased.