• Lessees use drilling-delay rental clauses because courts have said that they obviate any implied covenant to drill a test well on the premises. They are accepted by lessors because they provide for periodic income from the lease. See “or”lease, “unless”lease under LEASE. [Cases: Mines and Minerals 78.1(3). C.J.S. Mines and Minerals §§ 269–270.]
drilling delay rental clause
Oil & gas. A provision in an oil-and-gas lease giving the lessee the right to maintain the lease from period to period during the primary term by paying delay rentals instead of starting drilling operations.