Oil and Gas Glossary: L Terms
8 oil and gas terms start with the letter L. Each one is defined below, in alphabetical order.
Land Brokerage Company
An organization that offers its services to oil and gas Operators for the purpose of obtaining leases. Often independent landmen work for a land brokerage company.
Land Department
This is generally the title given to the department within an oil company that is responsible for all issues related to acquiring and administering mineral and surface rights in order for the company to explore for and produce oil and gas.
Landman, Petroleum Landman
A person, male or female, whose role is that of contacting mineral rights owners regarding the leasing of their mineral interests for oil and gas production. Landmen often are independent contractors.
Lease
The generic name for an Oil, Gas and Mineral Lease (OGML).
Lease Automatic Custody Transfer Unit, LACT Unit
A system providing for the automatic measurement, sampling, and transfer of oil from the lease location into a pipeline.
Lease Bonus
Usually the cash consideration that is paid by the lessee for the execution of an oil and gas lease by a landowner. It is usually based on a per acre payment.
Lessee
The purchaser (taker) of an Oil, Gas and Mineral Lease.
Lessor
The party who grants an Oil, Gas and Mineral Lease.