Oil and Gas Leasing
Before an oil and gas producer can drill, deepen, convert,
plug back, plug and abandon, or reopen a well, the producer
must obtain a permit from the Ohio Department of Natural
Resources’ (ODNR) Division of Mineral Resource Management.
Prior to obtaining a permit, an oil and gas
producer must obtain permission from
the landowner(s) to enter the land. This
permission is in the form of an oil and gas
lease agreement. LEASES MUST BE IN
WRITING. Every effort should be made
to negotiate terms of the lease agreement
that are fair to both the landowner(s) and
the producer. All lease agreements should
be negotiated, prepared and reviewed
by a qualified attorney before signing.
Following are some issues and lease terms
to consider when negotiating a lease.
Understanding the Parties
Involved The lessor is the owner of the
minerals to be extracted. Every person with
an interest in the property needs to sign the
lease. The lessee is the company interested
in obtaining the rights to drill and produce
the oil and gas. The lessee is not always the
same company d ]