10:51
I used to get called hispanic a lot, same for my mom
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Simple English definitions for legal terms
paid-up lease
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A quick definition of paid-up lease:
A paid-up lease is a type of agreement in the oil and gas industry where the person leasing the land pays all the necessary fees upfront, including any bonuses. This means that the landowner does not have to worry about receiving any additional payments or drilling requirements. The lease remains in effect for the agreed-upon term without any further obligations from either party.
A more thorough explanation:
A paid-up lease is a type of mineral lease used in the oil and gas industry. It differs from other leases in that it does not require the lessee to make delay-rental payments or commit to drilling. Instead, the lessor pays all delay-rental payments and any bonus when the lease is signed. This type of lease is often used for small areas, fractional interests, or short primary terms.
- Company A signs a paid-up lease with a landowner for a small plot of land. The lease does not require any delay-rental payments or drilling commitments, and the landowner receives a bonus payment upfront.
- Company B signs a paid-up lease for a fractional interest in a larger mineral estate. The lease allows Company B to extract oil and gas from their portion of the estate without any additional payments or drilling commitments.
These examples illustrate how a paid-up lease works in practice. In both cases, the lessor receives an upfront payment and does not have to worry about delay-rental payments or drilling commitments. The lessee, on the other hand, is able to extract oil and gas from the leased area without any additional financial obligations.