All income received by the owner of the land is rentals from real estate and excluded
in computing SEI.
The owner of a lease may sell it to another. An occasional sale would not constitute
a “trade or business”. However, there are lease dealers who buy and sell leases for their livelihood. This
is a business.
The ownership and operation of a working interest constitutes a business. Whether
the income is NESE depends on the nature of the venture. If a general partnership
is involved, the income to the individual partners will be NESE; if a corporation,
the income would be paid as dividends.