drilling-delay rental clause

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. • Lessees use drilling-delay rental clauses because courts have said that they obviate any implied covenant to […]

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. • Lessees use drilling-delay rental clauses because courts have said that they obviate any implied covenant to drill a test