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What are oil and gas leases?

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.

How many federal oil leases are there?

The BLM currently manages 37,496 Federal oil and gas leases covering 26.6 million acres with nearly 96,100 wells.

What is considered a true lease?

A lease intended as a security agreement transfers substantial ownership of the property to the lessee and, in most instances, requires the lessee to pay personal property taxes. A true lease does not transfer ownership, and the personal property taxes remain the responsibility of the lessor (owner).

What are the 3 types of leasing?

There are three categories of leases when it comes to commercial real estate: Gross Lease (also known as Full Service Lease), Net Lease, and Modified Gross Lease.

Who is the lessor on an 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

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