What is a key limitation of a non-participating royalty owner in West Virginia?

Prepare for the West Virginia CPLTA Test. Study with interactive resources, flashcards, and multiple choice questions, each with detailed explanations. Ace your exam!

A non-participating royalty owner in West Virginia possesses a limited interest in the minerals or resources beneath the land, specifically royalty interests that do not include other rights like leasing or operational control. The key limitation for such an owner is that they do not have the authority to enter into a lease agreement themselves. This is significant because it means they cannot negotiate terms or benefits that may arise from mineral extraction operations, thereby strictly limiting their control and management of the resources.

In contrast, the other options describe scenarios that do not align with the nature of a non-participating royalty interest. A non-participating royalty owner is entitled to receive payments based on production, so they do have a form of payment (which negates the first option). They are not responsible for production costs—those obligations lie with the party who manages the lease—thus eliminating the notion of liability for production expenses. Lastly, a non-participating royalty owner does not manage gas production since this role is reserved for the operator or lessee. Therefore, the correct answer clearly highlights the limitation of not being able to enter into a lease agreement.

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