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How do oil drilling leases work?

Oil leases are agreements between an oil and gas company known as the lessee and mineral owners known as a lessor, in which the lessor grants the lessee the permission to explore, drill, and produce those minerals for a specified period known as a primary term or as long as the minerals continue to be productive.

What are pooling rights?

Pooling: During the pooling process, extraction companies purchase or lease mineral rights from multiple landowners and pool them to form a drilling unit upon which they can legally place a drill rig.

What is a savings clause oil and gas lease?

A shut-in royalty clause is a savings clause within an oil and gas lease that allows a lessee to shut in a well but continue to maintain its lease by paying the lessor certain royalties identified in the lease.

What are pooling rights?

Pooling: During the pooling process, extraction companies purchase or lease mineral rights from multiple landowners and pool them to form a drilling unit upon which they can legally place a drill rig.

What is a pooling clause?

Pooling Clause: Joining the Leased Land with Other Land The typical OG lease allows the lessee to join or pool various adjacent tracts of land together to form a larger pooled unit on which it can operate.

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