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NON SURFACE DISTURBANCE OIL and GAS LEASE for STATE FOREST Form

NON SURFACE DISTURBANCE OIL and GAS LEASE for STATE FOREST Form

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how does an oil and gas lease work whenever an oil company does a lease with a mineral owner or multiple mineral owners in most cases what they do is they have an agreement to go drill a well and start producing typically within 3 years so they'll go lease the property from those mineral owners and maybe there's five 10 15 20 however many it may be once they've got that lease in place they're typically given a three-year period to start drilling and once that drilling is commenced they now are producing oil and that production has to continue every single month because that mineral owner is getting a check based on how much oil is coming out of the ground now there's a lot of rules and regulations when it comes to leases and I'll tell you one if we go 90 days without producing enough for payable quantities that lease can be taken from us and though we're left with the oil wells we now have to plug those eventually because we no lo

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