|
|
ASSIGNMENT |
|
|
|
|
|
|
|
The legal instrument whereby oil, gas and mineral leases or overriding royalty interests are assigned/conveyed. |
|
|
|
|
|
|
|
ASSIGNOR |
|
|
|
|
|
|
|
The person conveying oil, gas and mineral leases or an overriding royalty in an assignment. |
|
|
|
|
|
|
|
ASSIGNEE |
|
|
|
|
|
|
|
The people to whom oil, gas and mineral leases or overriding royalties are assigned/conveyed. |
|
|
|
|
|
|
|
BONUS |
|
|
|
|
|
|
|
Cash consideration paid to a landowner or mineral owner on the execution of an oil, gas or mineral lease. |
|
|
|
|
|
|
|
DELAY RENTAL |
|
|
|
|
|
|
|
Yearly payments paid during primary term to lessor to delay drilling. |
|
|
|
|
|
|
|
DEPOSITORY BANK |
|
|
|
|
|
|
|
A bank designated in an oil, gas and mineral lease to receive and distribute delay rentals. |
|
|
|
|
|
|
|
DIVISION ORDER |
|
|
|
|
|
|
|
A schedule of owners and their decimal share in revenues of the well, derived from the sale of oil or gas. |
|
|
|
|
|
|
|
GRANTOR |
|
|
|
|
|
|
|
A person who grants or conveys land, minerals, etc. |
|
|
|
|
|
|
|
GRANTEE |
|
|
|
|
|
|
|
The person receiving the grant of land, minerals, etc. |
|
|
|
|
|
|
|
GROSS WORKING INTEREST |
|
|
|
|
|
|
|
See Working Interest. |
|
|
|
|
|
|
|
JOINT OPERATING AGREEMENT |
|
|
|
|
|
|
|
An agreement among owners describing how a well is to be operated. |
|
|
|
|
|
|
|
LANDOWNER |
|
|
|
|
|
|
|
The person who generally owns all or part of the minerals under his land and is entitled to lease the same. |
|
|
|
|
|
|
|
MINERALS |
|
|
|
|
|
|
|
See Participating Royalty. AKA Mineral Interest. |
|
|
|
|
|
|
|
MINERAL OWNER |
|
|
|
|
|
|
|
Generally one who owns only minerals under a tract of land (but no surface) along with the right to execute a lease on the same. |
|
|
|
|
|
|
|
LEASE |
|
|
|
|
|
|
|
Another name for an oil, gas and mineral lease. |
|
|
|
|
|
|
|
LESSOR |
|
|
|
|
|
|
|
The party who grants an oil, gas and mineral lease. |
|
|
|
|
|
|
|
LESSEE |
|
|
|
|
|
|
|
The legal instrument whereby oil, gas and mineral leases or overriding royalty interests are assigned/conveyed. |
|
|
|
|
|
|
|
NET REVENUE INTEREST |
|
|
|
|
|
|
|
An owner's interest in the revenues of a well. |
|
|
|
|
|
|
|
NET WORKING INTEREST |
|
|
|
|
|
|
|
Share in well proceeds attributable to the working interest. |
|
|
|
|
|
|
|
NON-OPERATING INTEREST |
|
|
|
|
|
|
|
A working interest owner in a well, but not the operator. |
|
|
|
|
|
|
|
NON-PARTICIPATING ROYALTY |
|
|
|
|
|
|
|
A royalty interest which "participates" in any oil, gas or mineral found but does not "participate" in lease bonuses or rentals. |
|
|
|
|
|
|
|
NORM |
|
|
|
|
|
|
|
Normal occurring radioactive material. Can cause environmental concerns. |
|
|
|
|
|
|
|
OIL, GAS & MINERAL LEASE |
|
|
|
|
|
|
|
The agreement outlining the basic terms of developing lands or minerals such as royalty to be paid, length of time, and description of land. |
|
|
|
|
|
|
|
OIL & GAS LEASE |
|
|
|
|
|
|
|
Same as an oil, gas and mineral lease. |
|
|
|
|
|
|
|
NON-OPERATING INTEREST |
|
|
|
|
|
|
|
A working interest owner in a well, but not the operator. |
|
|
|
|
|
|
|
OPERATING AGREEMENT |
|
|
|
|
|
|
|
Same as joint operating agreement. |
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
The costs associated with operating a well. |
|
|
|
|
|
|
|
OPERATING INTEREST |
|
|
|
|
|
|
|
A working interest owner who is also the well operator. |
|
|
|
|
|
|
|
OPERATOR |
|
|
|
|
|
|
|
The party designated in the operating agreement to conduct the operations of the oil and gas extraction. |
|
|
|
|
|
|
|
OVERRIDING LOYALTY |
|
|
|
|
|
|
|
A royalty in excess of the royalty provided in the oil lease usually added on during an intervening assignment. |
|
|
|
|
|
|
|
PAID-UP LEASE |
|
|
|
|
|
|
|
An oil and gas lease where rental payments are paid along with a bonus. |
|
|
|
|
|
|
|
PARTICIPATING ROYALTY |
|
|
|
|
|
|
|
A royalty interest giving its owner the right to "participate" in bonuses received in leasing along with the right to "participate" in any oil or gas found. |
|
|
|
|
|
|
|
PRIMARY TERM |
|
|
|
|
|
|
|
The initial period in an oil and gas lease to develop the property. |
|
|
|
|
|
|
|
PUGH CLAUSE |
|
|
|
|
|
|
|
A clause added to an oil lease to limit holding non-producing lands or depths beyond the primary term of lease. |
|
|
|
|
|
|
|
ROYALTY |
|
|
|
|
|
|
|
Funds received from the production of oil or gas, free of costs, except taxes. |
|
|
|
|
|
|
|
RUN STUB |
|
|
|
|
|
|
|
Stub attached to a check disclosing month of production, gas or oil, price received, and total volumes produced. |
|
|
|
|
|
|
|
SALT WATER DISPOSAL WELL |
|
|
|
|
|
|
|
A well into which oil field salt water is disposed. |
|
|
|
|
|
|
|
SEVERANCE TAX |
|
|
|
|
|
|
|
A tax due the state on oil or gas produced or "severed" from the earth. |
|
|
|
|
|
|
|
SEVERED MINERALS |
|
|
|
|
|
|
|
Minerals whose title has been severed from the surface title. |
|
|
|
|
|
|
|
SHUT-IN |
|
|
|
|
|
|
|
An oil or gas well that is inactive. |
|
|
|
|
|
|
|
SURFACE OWNER |
|
|
|
|
|
|
|
Usually a landowner who owns no minerals under his land. |
|
|
|
|
|
|
|
UNLEASED MINERAL INTEREST |
|
|
|
|
|
|
|
A mineral interest not subject to an oil lease. |
|
|
|
|
|
|
|
WORKING INTEREST |
|
|
|
|
|
|
|
Usually a landowner who owns no minerals under his land. |
|
|
|
|
|
|
|
|
|
|
|
Abbreviations |
|
|
|
|
|
|
|
BOPM - Barrels of Oil Per Month
DR - Delay Rental
DO - Division Order
GWI - Gross Working Interest
JOA - Joint Operating Agreement
MCFPD - Thousands of Cubic Feet of Gas Per Day
MI - Mineral Interest
NRI - Net Revenue Interest
NWI - Net Working Interest
OGML - Oil, Gas and Mineral Lease
OL - Oil Lease
ORRI - Overriding Royalty Interest
RI - Royalty Interest
SI - Shut In
SWDW - Salt Water Disposal Well
UMI - Unleased Mineral Interest
WI - Working Interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|