Oil & Gas Lessor (US) | Practical Law

Oil & Gas Lessor (US) | Practical Law

Oil & Gas Lessor (US)

Oil & Gas Lessor (US)

Practical Law Glossary Item w-029-1880 (Approx. 3 pages)

Glossary

Oil & Gas Lessor (US)

A landowner who grants or executes an oil & gas lease to a lessee. The lessor grants the lessee a fee simple determinable with the right, but usually not the obligation, to enter the land and explore and drill for oil and gas. The lessor retains a possibility of reverter in the mineral estate. The lessor typically receives from the lessee a bonus payment, delay rentals, and royalty if hydrocarbons are discovered and produced.