A contract between the mineral owner or the lessor on the one hand and a company or the lessee on the other hand. Under the terms of the contract, the lessor grants the lessee the right to explore, drill and then produce oil and/or gas in a specific area for a specified initial term which is then extended as long as hydrocarbons are being produced commercially. The oil and gas lease is granted by the lessor in exchange for the lessee paying royalty payment to the lessor