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Simple English definitions for legal terms

drilling-delay rental clause

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A quick definition of drilling-delay rental clause:

A drilling-delay rental clause is a part of an oil-and-gas lease that allows the lessee to keep the lease without drilling by paying delay rentals instead. This clause is used to avoid any obligation to drill a test well on the premises. Before this clause became common, lessees had an implied duty to drill within a reasonable time after the lease was granted. The clause provides periodic income for the lessor and ensures that the lessee has no obligation to drill during the primary term.

A more thorough explanation:

A drilling-delay rental clause is a provision in an oil-and-gas lease that allows the lessee to maintain the lease by paying delay rentals instead of starting drilling operations during the primary term. This clause negates any implied obligation to test the premises and provides periodic income from the lease for the lessor.

For example, if a lessee has a drilling-delay rental clause in their lease, they can pay a delay rental fee to maintain the lease instead of drilling a test well on the leased premises. This allows the lessee to preserve their rights and provides income for the lessor.

Drilling-delay rental clauses became common in oil and gas leases because many courts previously held that lessees had an implied duty to drill a test well within a reasonable time after the grant of the lease. The courts' determination of what was a reasonable time varied depending on the circumstances.

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Dkk
13:29
I'm at your mommas house rn: https://x.com/Mansavelli_/status/1648073454665572352
triplethread
13:29
im addicted to reacting to all of the decisions
triplethread
13:29
with the emojis
HopefullyInLawSchool
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I shop at Joe
HopefullyInLawSchool
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Joe's
glovediedthisishismom
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i shop at tawget
glovediedthisishismom
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im dawk gawthic maga
triplethread
13:30
i shop at giant eagle
ForDizzyDJoy
13:31
How did i miss Fordham and American’s wave and I applied in september 🙃
13:33
Lol UC Davis took me of ED and put me in RD
13:34
surprised I didnt get straight denied
HopefullyInLawSchool
13:34
they emailed you/
HopefullyInLawSchool
13:34
?
13:35
@HopefullyInLawSchool: Yea, I just got it
i just want a cornell ii :(
13:37
yak you will be fucking shit up at cornell this time next year dw
i love u
13:38
love you too bby
glovediedthisishismom
13:42
what if desantis appoints lara trump and matt gaetz to be floridas senators
Dkk
13:42
Sounds good to me
HopefullyInLawSchool
13:43
@glovediedthisishismom: What if he appoint Ym instead?
HELP
every damn opportunity
13:47
do schools straight reject people from ed or to they always ed-rd if its a no for ED?
HopefullyInLawSchool
13:48
Some schools rject
13:49
Thanks! I couldn't find any reddit thread about it lol
13:49
but just means now I have to wait for the rejection from Davis
glovediedthisishismom
13:53
i just wanna rock
glovediedthisishismom
13:53
bodyadaya
13:53
let it rock
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