Oil and Gas Lease Form

All states | 4 types
Preview
Upd. 4, Jan, 2023
~ 3 pages
PDF
9K downloads
$29.95
An oil and gas lease form is a legal document that legalizes the exploration, production, and distribution of oil and gas sources. The lease form can also apply to other energy sources, such as coal, minerals, petrol, etc. This legal document protects the landowner’s rights, outlines the oil and gas company’s liability, confirms the lease legality for state authorities, and provides all terms and conditions for the established royalty price. Edit this Lawrina’s oil and gas lease contract, download it in PDF, and prepare for negotiations.
Choose your type of this legal template.
Create & Download

How It Works

Step 1
Fill out the necessary information
Answer simple questions to have the key details automatically inserted right in your document.
Step 2
Buy one template or monthly access to all templates
Opt for a one-time purchase or an unlimited number of Lawrina templates within a monthly subscription.
Step 3
Download in one click
Save your prepared template in PDF on your device or in your inbox anytime.
Recommended Step
Manage all documents in your Lawrina account
Edit, print out, or email your legal templates instantly wherever you need them.

Template Description

What Is an Oil and Gas Lease Form?

An oil and gas lease land contract is a legal form where landowners (“lessors”) provide energy companies (“lessees”) with the right to explore, extract, produce, and distribute oil and gas sources from private land property. This legal document protects the landowner’s rights, confirms the lease legality for state governments, and outlines all terms and conditions of oil and gas extraction for the established royalty price.

Types of Gas Lease Forms

There are two simple types of oil and gas lease purchase option contracts – a surface or subsurface lease and a right of first refusal lease agreement.

Surface or Subsurface Lease

This type of oil and gas lease purchase agreement describes the features of land work that the lessor creates for the lessee. If necessary, the landowner can also limit them and the surface square for oil exploration and extraction. The landowner can control other essential tools for hydrocarbon operations:

  • Discovering suitable lands for drilling, for example, fields and forests, and studying their geology;
  • Researching underground areas for equipment sound wave relevance;
  • Drilling facilities storage, etc.

As a landowner, you can always restrict the activities on your property land if you find them inappropriate. However, all the parties’ obligations remain negotiable for oil and gas lease forms.

Right of First Refusal

This type of oil and gas lease option contract implies that your current document will not be renewed, and the energy development company refuses any land lease offers from other landowners. In all opposite cases, oil and gas lease option contracts renew automatically, preserving the same duration and scope of work.

When Should an Oil and Gas Lease Land Contract Be Used?

Energy companies use geological maps to search for a perfect land to start drilling oil or gas and/or producing various hydrocarbon products. If you have a vast private land property, land businessmen can easily reach out to you and offer to cooperate. 

Providing land acres for hydrocarbon exploration and development can become a perfect business opportunity for landowners if both sides negotiate correctly with a well-composed landman oil and gas lease form template. This kind of legal document has been well-known for over a hundred years and has gathered all the essential points for a perfect document structure and reliable business growth and partnership.

Standardized lease agreements for oil and gas may often lack industry-specific clauses. In cooperation with land managers and attorneys, Lawrina legal professionals have created a sample of a state-compliant oil and gas lease purchase agreement, with up-to-date industry-related provisions. Using this Lawrina’s legal form, you will manage to set all core details of your land deal. Below you will see the crucial components of a general oil and gas lease letter template.

What Should Be Included?

Before drafting your blank oil and gas lease form template as is, make sure you have the following information:

  • The full description of your land property: location, square footage, ownership;
  • The lease term and duration dates: when the lease starts and expires;
  • Consideration, or the bonus fees;
  • Fees;
  • Parties’ personal information: full names, companies, occupation, contact methods.

Now you should correctly insert these details in the following clauses of oil and gas lease letter templates:

  • Granting clause: this fundamental provision of energy documents legalizes the oil company’s right to develop the source on a specific land as agreed by its owner;
  • Term clause, or habendum clause: this provision specifies the type of the lease term and its starting and expiry dates;
  • Royalty clause: this provision defines the amount of royalty paid to landowners;
  • Pooling clause: this provision allows lessees to merge the lands so that they can set all the necessary equipment for oil and gas exploration, extraction, and production;
  • Pugh clause: if you have your land surface protected, the energy company takes all responsibility for oil or gas leakage and damage made to your land as a result;
  • Shut-in royalty clause: the lessee will continue paying for the land if the production of oil and gas cannot be marketed due to the pipeline connection or other reasons.

These clauses only gain their legal force in oil and gas lease purchase agreements.

How To Write an Oil and Gas Lease Form Template: Step-By-Step

Step 1 – Negotiations

Negotiations between the parties play a significant role in oil and gas deals. Specific rules will help the parties achieve their goal and start their cooperation immediately.

First, landowners should research the oil and gas companies offering them the mineral resources lease and set the whole production on their land. It is recommended to pay attention to the type of entity that contacted the lessor (e.g. a land manager, a broker, or someone working on the same tasks as these two) and the oil and gas company itself (its market presence, number of successful leases, location, etc.)

When lessors have found potential lessees, they should arrange meetings and discuss the exact information related to the clauses of oil and gas forms. This can be:

  • The type of your lease term;
  • The lease duration;
  • All kinds of royalties;
  • Bonus fees.

Step 2 – Filling Out the Template

You can use this Lawrina’s template to draft your oil and gas lease. When having all the aforementioned information, you can put it in the document sample. Lawrina’s questions related to this oil and gas lease form will help you fill it out to the tiniest details. 

When you finish editing your template, Lawrina will send it to you via email or you can download the printable PDF version immediately.

Step 3 – Final Revisions & Signatures

You can review your document once again and forward it to the other parties if all is set. You can also give the agreement to your energy attorney for more qualified revision.

When both parties agree to the lease document content, they can sign it and have it notarized at their public state institutions. 

All Your Legal Templates in One Place

Whether you're growing business, solving family issues, or doing personal deeds, Lawrina has a template to suit your needs.
One-Time Purchase
$29.95
/template
Create one perfect legal form to solve your legal issue in a flash.
  • Unlimited edits of one template
  • Quick download in PDF
  • Direct access from any device
Recommended
Premium Subscription
$19.95
/month
Find, edit, and use as many templates as you need.
  • Unlimited edits of all Lawrina templates
  • Safe & infinite template storage in your Lawrina account
  • Quick download in PDF
  • Direct access from any device

Template Benefits

Create your Lawrina Templates account in a few clicks. Manage and use purchased templates from your dashboard whenever you need.
5-Minute 
Creation
Take five minutes only to answer simple template-specific questions.
Customizable 
Legal Documents
Lawrina's templates are easy to edit, print out, download, and share with the parties.
Compliance 
With State Laws
Wherever you are in the U.S., you can always introduce state-compliant legal documents.
Regular 
Legal Revision
Lawrina legal professionals constantly update our templates to ensure you’re armed with a legally binding document.

Frequently Asked Questions

Why are oil and gas forms important?

Oil and gas fossil fuels have always played a significant role in the energy sector. The need for well-composed and legally enforceable documents has risen when multiple legal templates turned online.

A lease agreement for oil and gas is one of the initial steps between landowners and energy companies before cooperation. Based on this oil and gas lease form, lessors and lessees can create other lease-related oil & gas agreements, e.g. ratification lease, notice lease, amendment lease, etc. When this contract includes all its specific provisions which parties have discussed in detail, the chances to end up in disputes or court are lower. 

What notary acknowledgment form to put on an oil and gas lease?

The parties’ signatures should be notarized in oil and gas lease land contracts. Most US states require notarized documents for state land records.

Before you introduce your oil and gas lease to the notary, double-check your legal form and remove errors and typos if you have found any.

How long do oil and gas leases last?

Commonly, oil and gas leases have primary and secondary terms. The primary term is a permanent duration of the lease that can last from one to ten years in full. 

The secondary term is activated after the primary term expires if the parties still agree with the term clause of the oil and gas lease purchase option contract. In the case of continuing the cooperation between the parties, the secondary term expires when the sources deplete. Before enabling the secondary term, companies should pay for the lease extension.