Oil and Gas Lease

An oil and gas lease is a legal agreement that allows a company to explore for and extract oil or natural gas from a specific piece of land owned by someone else. In return, the landowner typically receives a bonus payment and a percentage of the profits, known as royalties, from the extracted resources. The lease outlines the rights and responsibilities of both parties, including how long the lease lasts and any environmental protections. Essentially, it's a contract that grants permission to access valuable underground resources while compensating the landowner.