Oil and Gas Lease Agreements

An oil and gas lease agreement is a legal contract between a landowner and a company seeking to extract oil or gas. The landowner grants the company the right to access and drill on their property for a specified period, usually in exchange for payments such as upfront fees, ongoing royalties from the produced resources, and sometimes bonus payments. The agreement outlines rights, responsibilities, and terms, including environmental considerations. Essentially, it allows the company to explore and develop underground resources while compensating the landowner for use of their land.