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What is an oil gas and mineral lease?

What does Oil and Gas Leasing Mean? 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.

Is it better to lease or sell mineral rights?

A company who leases your land may deplete the mineral supply substantially before returning the land back to you. Selling reduces overall risk of handling mineral rights.

What are the different types of oil and gas leases?

Is there more than one type of oil and gas lease? Yes, there are three types: a surface use lease, a non-surface use lease, and a dual purpose lease.

Who controls oil and gas leases?

The BLM administers the lease but the Forest Service has more direct involvement in the leasing process for lands it administers. The Act also establishes a requirement that all public lands that are available for oil and gas leasing be offered first by competitive leasing.

What happens if you dont lease your mineral rights?

If you did not lease your mineral interests and a horizontal wellbore is producing from under your land, then you may be entitled to damages from the oil company. Such damages will likely take into consideration the proportion of production from the well that comes from your tract.

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