Oregon Statutes 274.785 – Exclusive rights granted by lease; requirement of diligence; maximum area; assignment
(1) The lease shall grant the exclusive right to drill for and produce all oil, gas and sulfur deposits in the leased land and be for a primary term of 10 years and for so long thereafter as oil, gas or sulfur is produced in paying quantities from the leased land, or lessee is diligently conducting producing, drilling, deepening, repairing, redrilling or other necessary lease or well maintenance operations on the leased land or is excused from conducting such operations under the terms of the lease.
Terms Used In Oregon Statutes 274.785
- Department: means the Department of State Lands. See Oregon Statutes 274.005
- Land: includes water, water rights, easements of every nature and all appurtenances to land. See Oregon Statutes 274.005
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
(2) The maximum area which shall be included in any single lease to any person shall be 13,200 acres.
(3) No permit, easement or lease, or any portions thereof shall be assignable without the prior written consent of the Department of State Lands. [1961 c.619 8,10,22; 1963 c.359 § 1]