What does Mineral Lease mean? Read on to discover the definition & meaning of the term Mineral Lease - to help you better understand the language used in insurance policies.
A contract between a mineral owner (the lessor) and a company or working interest owner (the lessee) in which the lessor grants the lessee the right to explore, drill, and produce oil, gas, and other minerals for a specified period of time. The oil and gas lease is granted in exchange for royalty payments to the lessor.
We hope the you have a better understanding of the meaning of Mineral Lease.