Gas Leases & Leasing: Your Informational Guide

This site is dedicated to providing information, facts, and definitions in regards to gas leases including how they operate and how they should be approached.

Gas Lease Defined

Simply put, an oil lease is a contract between an owner and a company with working interest in the owners land. The lease typically grants the company the right to explore, drill, and produce oil for a specified amount of time or as long as there is oil to produce in payable quantitities. In exchange, the company proviudes royalty payments to the owner.

State Owned Gas Leases

Often times these lease sales are facilitated by the state where the resources lie. States like Louisiana and Alaska have existing leases with the oil industry, allowing them to derive millions of dollars in monthly revenue. Oil revenues actually allow the state of Alaska to pay out dividend checks to state residents (https://www.pfd.state.ak.us/).

Landowners and Gas Leases

If you have land that you believe could have resources that would be valuable to the oil and gas industry, consult your own state's guidelines for the proper next steps to be taken. Information on a PA lease, for example, can be found at the state's Department of Environmental Protection website. These sites will likely be able to answer your questions and provide you with the proper resources to faciliate establishing a lease.