Definitions

Assignment: The legal instrument whereby oil and gas leases or overriding royalty interests are assigned or conveyed.

Assignor: The person conveying oil and gas leases or overriding royalty in an assignment.

Assignee: The person to whom oil and gas leases or overriding royalties are assigned.

Bonus: Cash consideration paid to a land owner or mineral owner on the execution of an oil, gas and 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 lands, minerals, etc..

Grantee: The person receiving lands, minerals, etc...

Gross Working Interest: See working interest.

Joint Operating Agreement: An agreement among joint interest owners describing how a well is to be operated.

Land Man: The person who secures leases and handles damages for oil companies who are drilling new wells or laying pipelines.

Landowner: The person who generally owns all or part of the minerals under his land and is entitled to lease the same.

Lease: Another term for oil, gas and mineral lease.

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Lessor: The party who grants an oil, gas and mineral lease.

Lessee: The purchaser of an oil, gas and mineral lease.

Mineral Rights: The ownership of the minerals and/or hydrocarbons under a given surface, and the right to enter theron to drill, and remove them.

Net Working Interest: Share in well proceeds attributable to net working interest.

Disclaimer
1. This document and the materials contained in it are neither an offer to sell nor a solicitation of an offer to buy any security in any state or jurisdiction.
2. Past performance is not a guarantee of future performance or returns.

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