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Simple English definitions for legal terms

drilling-delay rental clause

Read a random definition: Shelley's Case, Rule in

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.

drilling contract | drinking shop

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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