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An oil and gas lease is a hybrid property interest. For some purposes it can be considered a personal property and for other purposes it can be treated as real property. Under an oil and gas lease, the lessee holds the dominant property and the lessor holds the servient property.
An Oil and Gas lease is a legal document between the landowner (lessor) and an operator (lessee) that allows the operator to produce and sell the oil and gas minerals beneath the property.
A mineral lease is a contractual agreement between the owner of a mineral estate (known as the lessor), and another party such as an oil and gas company (the lessee). The lease gives an oil or gas company the right to explore for and develop the oil and gas deposits in the area described in the lease.
The BLM generally issues two types of leases for oil and gas exploration and development on lands owned or controlled by the Federal government -- competitive and noncompetitive.
When negotiating a lease, make sure you do the following Read the leases terms carefully. Research comparable rental properties in the area. Decide if you really want to live there. Be cordial and professional. Consider having a real estate professional look over the lease.
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People also ask

(a) The primary term of an oil and gas lease will be five years, unless BOEM determines that: (1) The lease is located in unusually deep water or involves other unusually adverse conditions; and, (2) A lease term longer than five years is necessary to explore and develop the lease.
Oil and gas exploration companies generally want to hold the leased mineral rights for a period of years until they actually begin drilling. This could be because the price for natural gas is down, or their rigs are operating elsewhere, or for any number of business reasons.
In Texas, Oklahoma, Colorado and Montana, mineral owners can own the mineral rights indefinitely and there is no way for them to passively revert to the surface owner. If a surface owner wants to own the mineral rights under their land, they must find and contact the mineral owners and offer to purchase them.
If youve recently inherited the mineral rights to a piece of property, you might want to cash in on them as fast as possible. While the oil industry today isnt quite like the Beverly Hillbillies, you can still make a lot of money owning mineral rights.
The primary purpose of the oil and gas lease is to hold the oil and gas for development by the Lessee yet most oil and gas leases are silent as to the obligations of the Lessee with respect to the conduct of operations after oil and gas is discovered.