Home > Term: oil and gas lease
oil and gas lease
A contract between mineral owner, otherwise known as the lessor and a company or working interest owner, otherwise known as the lessee in which the lessor grants the lessee the right to explore, drill and produce oil, gas and other minerals for a specified primary term and as long thereafter as oil, gas or other minerals are being produced in paying quantities. This lease gives the lessee a working interest. The oil and gas lease is granted in exchange for royalty payments to the lessor.
- Part of Speech: noun
- Industry/Domain: Oil & gas
- Category: Oilfield
- Company: Schlumberger
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- BSchmidt
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