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What is an oil lease?

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.

What does it mean to take gas in kind?

A landowner can also insert a clause in the lease to take royalty either in kind or in value. Taking royalty in kind means that the Lessor can take physical possession of the oil, gas or liquids once they leave the ground, and he may market the production himself.

What is a disposition in oil and gas?

Disposition. The components of petroleum disposition are stock change, crude oil losses, refinery inputs, exports, and products supplied for domestic consumption.

What is a Communitization agreement in oil and gas?

Communitization agreements are used to combine multiple small tracts that contain one or more federal or Indian leases to form the spacing unit required to comply with the well spacing regulations of the applicable jurisdiction. Communitization agreements require prior government approval.