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