Gas Lease Template

This Gas Lease is made on [Date] by and between:

Lessor / Landowner: [Full Name]
Address: [Address]

Lessee / Operator: [Company Name / Full Name]
Address: [Address]

1. Leased Property

The Lessor leases to the Lessee the following described land:

Property Address: [Address]
County and State: [County, State]
Legal Description: [Insert legal description]

If applicable, the leased premises include all or part of the mineral rights owned by the Lessor in the above-described property.

2. Grant of Rights

The Lessor grants to the Lessee the exclusive right to explore for, drill for, produce, store, treat, gather, market, and remove natural gas and related hydrocarbons from the leased premises, together with such related rights as are reasonably necessary to conduct those operations.

These rights include reasonable access to the property for roads, pipelines, tanks, compressors, meters, and related equipment, subject to the terms of this Lease.

3. Lease Term

This Lease shall remain in effect for a primary term of [Number] years beginning on [Start Date].

After the primary term, this Lease shall continue so long as:

☐ gas is being produced in paying quantities
☐ drilling or reworking operations are being conducted
☐ shut-in payments are timely made, if applicable
☐ other: [Describe]

4. Bonus and Initial Payment

As consideration for this Lease, the Lessee shall pay the Lessor:

Lease Bonus: [$Amount]
Payment Due Date: [Date]

If no bonus is to be paid, write:

[None]

5. Royalty

The Lessee shall pay the Lessor a royalty of [Percentage]% of the gas produced and saved from the leased premises, or the value or proceeds received from such production, as provided below:

Royalty payment basis:

☐ gross proceeds
☐ net proceeds subject to permitted deductions
☐ market value at the point of sale
☐ other: [Describe]

Royalty payments shall be made:

☐ monthly
☐ quarterly
☐ as otherwise required by law or agreement: [Describe]

6. Delay Rental or Minimum Payment

If applicable, the Lessee shall pay the following delay rental or minimum lease payment to maintain the Lease during the primary term before production begins:

Amount: [$Amount]
Due Date or Frequency: [Date / Annual / Other]

If not applicable, write:

[None]

7. Surface Use and Access

The Lessee may use only so much of the surface as is reasonably necessary for operations under this Lease.

The following surface-use conditions apply:

[Access road limits]
[Location limits for wells or equipment]
[Notice before entry]
[Fence, gate, or livestock protection requirements]
[Other conditions]

8. Restoration and Damage

The Lessee agrees to use reasonable care in operations on the property and to repair or reasonably restore surface areas disturbed by its activities, to the extent required by this Lease or applicable law.

Damage to crops, fences, roads, water lines, or improvements shall be handled as follows:

[Describe terms]

9. Shut-In and Non-Production Terms

If a well capable of producing gas is shut in or not currently producing, the Lease may remain in effect if the Lessee makes the following shut-in payment:

Amount: [$Amount]
Due Date or Frequency: [Date / Annual / Other]

Additional shut-in terms, if any:

[Insert terms]

10. Taxes and Costs

Taxes, production costs, and other charges shall be handled as follows:

☐ Lessee is responsible for operational taxes and costs
☐ Lessor is responsible only for taxes attributable to royalty ownership
☐ other: [Describe]

11. Assignment

The Lessee may:

☐ assign this Lease in whole or in part
☐ not assign this Lease without the Lessor’s written consent
☐ assign this Lease subject to the following conditions: [Describe]

Any permitted assignee shall take the Lease subject to its terms.

12. Default and Termination

If either party believes the other has breached this Lease, that party shall provide written notice describing the claimed default.

The receiving party shall have [Number] days to cure the default, if curable.

This Lease may terminate:

☐ at the end of the primary term if no savings clause applies
☐ upon written release by the Lessee
☐ upon uncured material breach
☐ as otherwise stated here: [Describe]

13. Governing Law

This Lease shall be governed by the laws of the state of [State].

14. Entire Agreement

This Lease contains the full understanding between the parties regarding the gas leasing rights described above and replaces prior discussions on the same subject unless otherwise stated in writing.

15. Signatures

Lessor Signature: __________________________
Name: [Full Name]
Date: [Date]

Lessee Signature: __________________________
Name: [Full Name]
Title: [Title, if applicable]
Date: [Date]

Notary, if required:

State of [State]
County of [County]

On this [Day] of [Month], [Year], before me, the undersigned notary public, personally appeared [Name of Signer(s)], known to me or satisfactorily proven to be the person(s) whose name(s) are subscribed to this instrument, and acknowledged that they executed the same for the purposes stated herein.

Notary Public Signature: __________________________
Name: [Notary Name]
My Commission Expires: [Date]