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Which two acts have the BLM responsibility for oil and gas leasing?

The BLMs authority to manage the publics oil and gas resources in the 48 contiguous states comes from two laws -- Mineral Leasing Act of 1920 as amended . Leasing authority in Alaska comes largely from the Naval Petroleum Reserves Production Act of 1976 .

What is leasing in oil and gas?

Oil and Gas leasing is a contract through which a landowner sanctions the exploration for and production of oil and gas on their land in exchange for an agreed royalty price.

How do government oil leases work?

Lease Terms The leases issued by BLM have a primary term of ten years. This is the period of time during which the lessee may explore for oil and gas deposits and attempt to bring them into production. If the lessee has begun drilling by the end of the ten-year term, the lease term may be extended by two years.

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.

What is a Pugh clause in an oil and gas lease?

In general terms, the Pugh Clause provides that production from a unitized or pooled area located on or including a portion of the leased lands will not be sufficient to extend the primary term for the entire leasehold.

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