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Simple English definitions for legal terms

dry-hole clause

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A quick definition of dry-hole clause:

A dry-hole clause is a rule in an oil-and-gas lease that explains what a lessee must do to keep the lease after drilling a well that doesn't produce oil or gas. The clause usually says that the lessee can keep the lease by paying rent for the rest of the lease term.

A more thorough explanation:

A dry-hole clause is a provision in an oil-and-gas lease that specifies what a lessee must do to maintain the lease for the remainder of the primary term after drilling an unproductive well. The clause is intended to make clear that the lessee may maintain the lease by paying delay rentals for the remainder of the primary term.

For example, if a company leases land for oil and gas exploration and drills a well that does not produce any oil or gas, the dry-hole clause would require the company to continue paying rent to maintain the lease for the remaining term.

The dry-hole clause is important because it ensures that the lessor continues to receive compensation for the use of their land, even if the lessee is not able to extract any oil or gas.

dry-hole agreement | dual citizenship

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Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
BulbasaurNoLikeCardio
7:51
@texaslawhopefully: best prices and only fast food that doesn't make me sick
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