Texas oil and gas leases grant mineral rights owners (lessors) compensation while allowing companies (lessees) to explore and extract minerals. Standard leases include a primary term (typically 3-5 years) for exploration and a secondary term lasting as long as production continues. Lessors receive an upfront bonus payment, royalty payments (usually 1/8 of production value), and sometimes delay rentals. Key provisions cover drilling obligations, pooling rights, surface use restrictions, and depth limitations. Understanding complex lease language is crucial, as terms significantly impact long-term royalty income. We recommend legal review before signing any oil and gas lease.

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