oil and gas leasing

Oil and gas leasing involves agreements where landowners, often called lessors, rent their land to companies, known as lessees, for exploration and extraction of oil and gas. The company pays a bonus, typically an upfront payment, and ongoing royalties based on the amount of resources extracted. The lease outlines the rights and responsibilities of both parties, including environmental protections and duration. This process enables companies to access resources while providing landowners with financial compensation, often impacting local economies and communities.