Lessor's Form
Overview of this form
The Lessor's Form is a detailed lease agreement specifically designed for oil and gas transactions. Unlike standard lease forms, this document includes comprehensive provisions regarding the rights and obligations of both lessor and lessee. It serves to establish terms for the exploration, drilling, and production of oil and gas, ensuring all parties understand their responsibilities in the leasing process.
What’s included in this form
- Identification of parties: Specifies the lessor and lessee involved in the agreement.
- Lease provisions: Detailed clauses regarding payment structures, including royalties for oil and gas produced.
- Term of the lease: Defines the period of the lease and conditions for extension based on production.
- Shut-in provisions: Outlines payment terms for any shut-in gas wells and conditions for lease maintenance.
- Pooling rights: Allows the lessee to combine leased land with other properties for efficient exploration and production.
- Termination clauses: Specifies scenarios under which the lease may be terminated or remain in force.
When to use this document
This form should be used whenever a landowner (lessor) wishes to lease land for oil and gas exploration and production. It is appropriate for landowners looking to generate income from their property while allowing a lessee to explore and potentially extract natural resources. Additionally, this form is ideal when both parties seek a comprehensive agreement that clearly outlines rights, responsibilities, and compensation.
Who should use this form
- Landowners who want to lease their land for oil and gas extraction.
- Oil and gas companies seeking to obtain rights to explore and produce resources.
- Attorneys representing either lessors or lessees in oil and gas transactions.
- Anyone involved in negotiations or agreements related to oil and gas leases.
Completing this form step by step
- Identify the parties: Fill in the names and addresses of the lessor and lessee.
- Specify the property: Include detailed descriptions of the land being leased.
- Enter the term: Indicate the duration of the lease and any provisions for its extension.
- Outline payment terms: Clearly state any cash bonuses, royalties, and shut-in payments.
- Include signatures: Ensure that both parties sign and date the document to validate the agreement.
Is notarization required?
Notarization is required for this form to take effect. Our online notarization service, powered by Notarize, lets you verify and sign documents remotely through an encrypted video session, available 24/7.
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If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Typical mistakes to avoid
- Failing to thoroughly read and understand all lease provisions.
- Not specifying critical details such as property description and lease terms.
- Overlooking the requirement for signatures from both lessor and lessee.
- Neglecting to consult with an attorney for legal advice before finalizing the lease.
Benefits of completing this form online
- Convenience: Easily access and download the form from anywhere, anytime.
- Editability: Modify the form as needed for specific lease terms without hassle.
- Reliability: Obtain a professionally drafted agreement that meets legal standards.
- Cost-effective: Save on legal fees by using a ready-to-go form tailored for oil and gas leases.
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FAQ
Landowners who are considering purchasing, or have already purchased a property can search their county Register of Deeds registry to determine if an oil and gas lease is recorded.A search of the public records at the county register of deeds office is necessary.
Oil and gas lease is an agreement between a mineral owner (lessor) and a company (lessee) in which the owner grants the company the right to explore, drill and produce oil, gas, and other minerals below the surface of the earth.
¹ The term of an oil and gas lease is divided into two parts, a primary term and a secondary term. The primary term is usually for a set amount of years, 1, 3, 5, 7 or 10 years.
Nationally, mineral rights owners can expect anywhere from $100 to $5,000 per acre for their mineral rights lease. The most valuable mineral rights leases are on producing parcels of land that are still expected to hold many more precious minerals.
