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GLOSSARY

ASSIGNMENT 
The legal instrument whereby oil, gas and mineral leases or overriding royalty interests are assigned/conveyed.

ASSIGNOR 
The person conveying oil, gas and mineral leases or an overriding royalty in an assignment.

ASSIGNEE 
The people to whom oil, gas and mineral leases or overriding royalties are assigned/conveyed.

BONUS
Cash consideration paid to a landowner or mineral owner on the execution of an oil, gas or mineral lease.

DELAY RENTAL 
Yearly payments paid during primary term to lessor to delay drilling. 

DEPOSITORY BANK 
A bank designated in an oil, gas and mineral lease to receive and distribute delay rentals.

DIVISION ORDER 
A schedule of owners and their decimal share in revenues of the well, derived from the sale of oil or gas.

GRANTOR 
A person who grants or conveys land, minerals, etc.

GRANTEE
The person receiving the grant of land, minerals, etc.

GROSS WORKING INTEREST
See Working Interest.

JOINT OPERATING AGREEMENT
An agreement among owners describing how a well is to be operated.

LANDOWNER
The person who generally owns all or part of the minerals under his land and is entitled to lease the same.

MINERALS
See Participating Royalty. AKA Mineral Interest.

MINERAL OWNER
Generally one who owns only minerals under a tract of land (but no surface) along with the right to execute a lease on the same.

LEASE
Another name for an oil, gas and mineral lease.

LESSOR
The party who grants an oil, gas and mineral lease.

LESSEE 
The purchaser of an oil, gas and mineral lease.

NET REVENUE INTEREST
An owner's interest in the revenues of a well.

NET WORKING INTEREST
Share in well proceeds attributable to the working interest.

NON-OPERATING INTEREST
A working interest owner in a well, but not the operator.

NON-PARTICIPATING ROYALTY
A royalty interest which "participates" in any oil, gas or mineral found but does not "participate" in lease bonuses or rentals.

NORM
Normal occurring radioactive material. Can cause environmental concerns.

OIL, GAS & MINERAL LEASE
The agreement outlining the basic terms of developing lands or minerals such as royalty to be paid, length of time, and description of land.

OIL & GAS LEASE
Same as an oil, gas and mineral lease.

OPERATING AGREEMENT 
Same as joint operating agreement. 

OPERATING EXPENSES
The costs associated with operating a well.

OPERATING INTEREST
A working interest owner who is also the well operator.

OPERATOR
The party designated in the operating agreement to conduct the operations of the well.

OVERRIDING LOYALTY
A royalty in excess of the royalty provided in the oil lease usually added on during an intervening assignment.

PAID-UP LEASE
An oil and gas lease where rental payments are paid along with a bonus.

PARTICIPATING ROYALTY
A royalty interest giving its owner the right to "participate" in bonuses received in leasing along with the right to "participate" in any oil or gas found.

PRIMARY TERM
The initial period in an oil and gas lease to develop the property.

PUGH CLAUSE
A clause added to an oil lease to limit holding non-producing lands or depths beyond the primary term of lease.

ROYALTY
Funds received from the production of oil or gas, free of costs, except taxes.

RUN STUB
Stub attached to a check disclosing month of production, gas or oil, price received, and total volumes produced.

SALT WATER DISPOSAL WELL
A well into which oil field salt water is disposed.

SEVERANCE TAX
A tax due the state on oil or gas produced or "severed" from the earth.

SEVERED MINERALS
Minerals whose title has been severed from the surface title.

SHUT-IN
An oil or gas well that is inactive.

SURFACE OWNER
Usually a landowner who owns no minerals under his land. 

UNLEASED MINERAL INTEREST
A mineral interest not subject to an oil lease.

WORKING INTEREST
Interest(s) in a well which bears the drilling and operating expenses.
Agencies/Organization
      Oil and Gas Royalty Links State Agencies             Petroleum Trade Associations/Organizations            Miscellaneous