Your title includes "royalty" and you mention this is passive. That means you have no operating activity, and just have a 1099-Misc for this entity?

https://proconnect.intuit.com/taxprocenter/tax-law-and-news/basic-tax-reporting-of-oil-and-gas-relat...

"i could add additional expenses that related to their O&G business, such as Legal & Professional Fees."

Is that a working interest, then?

I guess the question is, what is their Activity? Perhaps those costs are Entity Costs and not related to O&G, even if that is the only cash flow (investment).

https://proconnect.intuit.com/community/federal-taxes/help/partnership-k-1-input-oil-gas/00/3690