CoreStream Energy, Inc. (fka ZLUS)

[patchman]

Working interest is created when a mineral owner leases his or her minerals. That portion of the leased minerals not reserved as royalty is working interest. Working interest pays all of the costs of a well from beginning to plugging and abandonment. Working interests owned by the operator are operated interests. Working interest owned by others that do not operate is non operated working interest. There is no difference in liabilities for one or the other. As a working interest owner you are liable for your portion of all costs. If a well blows out and damages property around a well, you are responsible for your proportional part of that damage.

Royalty is everything that isn't working interest. Landowner royalty is that royalty reserved in a lease by a lessor or mineral owner. Non Participating royalty is a royalty interest created by the owner of the minerals and may be for a specific term or forever. Overriding royalty interest is a royalty interest created by the Lessee, wherein the lessee creates a royalty from a portion of the working interest and assign it to another party. It expires with the lease under which it was created.