paid up lease
paid-up lease. Oil & gas. A mineral lease that does not provide for delay-rental payments and does not subject the lessor to any covenant to drill. • In effect, the lessor makes all delay-rental payments, and perhaps a bonus, when the lease is signed. A paid-up lease may be used to lease a small area or a fractional interest, or for a short primary term or for small delay rentals. The lease is effective through the primary term.
