Legal Dictionary of Pakistan

drilling-delay rental clause

Oil & gas. A clause in an oil-and-gas lease providing for periodic payments by the lessee to postpone exploration during the primary lease term. 0 This clause is usu. used to negate any requirement of drilling a test well."The purpose of the lease drilling-delay rental clause is to ensure that the lessee has no obligation to drill during the primary term by negating any implied obligation to test the premises. Before drilling-delay rental clauses became common in oil and g