Which of the following correctly distinguishes a non-participating royalty owner?

A non-participating royalty owner is specifically defined as someone who holds a royalty interest in minerals but does not have the right to lease or develop those minerals. This means that they are not involved in the operations of extracting resources, such as gas, from the property. They receive a portion of the profits, often termed royalties, from the production of those minerals but do not engage in the activities surrounding the actual production process.

The option indicating that the owner cannot produce the gas is correct as it highlights this fundamental distinction; their role is strictly passive in terms of actual extraction or production efforts. This lack of operational involvement defines their status and rights related to the property, differentiating them from those who participate in leasing agreements or incur costs related to exploration and production.