Abstract of Title – A concise statement, usu. prepared for a mortgagee or purchaser of real property, summarizing the history of a piece of land, including all conveyances, interests, liens, and encumbrances that affect title to the property
Bonus – A payment that is made in addition to royalties and rent as an incentive for a lessor to sign an oil-and-gas lease.
Dry Hole – An oil or gas well that is incapable of producing enough minerals to justify the cost of completing it and putting it into production.
Landman – A person responsible for acquiring oil and gas leases, negotiating arrangements for development of leases, and managing leased properties. In this field, both men and women are commonly known as landmen.
Landowner – One who owns land.
Landowner’s Royalty – A share of production or revenues provided for the lessor in the royalty clause of the oil-and-gas lease and paid at the well free of any costs of production.
Mineral Lease – A lease in which the lessee has the right to explore for and extract oil, gas, or other minerals. • The rent usu. is based on the amount or value of the minerals extracted.
Mineral Interest – The right to search for, develop, and remove minerals from land or to receive a royalty based on the production of minerals.
Surface Interest – The surface-interest owner has the right to the surface subject to the right of the mineral-interest owner to use the surface. The surface-interest owner is entitled to all whatever nonmineral substances are found in or under the soil.
Working Interest – The rights to the mineral interest granted by an oil-and-gas lease, so called because the lessee acquires the right to work on the leased property to search, develop, and produce oil and gas, as well as the obligation to pay all costs.
All definitions are from Black's Law Dictionary (9th ed. 2009).