Oil and Gas Lease

Agreement that gives the right to explore for oil, gas, and sometimes other minerals and to extract them from the ground.

An agreement that gives the right to explore for oil, gas, and sometimes other minerals and to extract them from the ground. Provisions include the granting of subsurface and surface rights, Lease duration, Extension terms, royalties, surface damages, Assignments and Warranties. See Mineral Rights.
Example: In an oil and gas lease, the owner is to receive $100 per acre as a bonus payment, and one eighth of the value of minerals found on the property.