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Oil & Gas Leasing

Granting Clause in an Oil & Gas Lease

The granting clause is the provision in an oil and gas lease that states exactly what the mineral owner conveys to the operator — the substances, lands, depths, and rights of use covered by the lease.

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What the granting clause covers

The granting clause is where the lease defines its scope. It typically names the substances leased (oil, gas, and often "other minerals" or "associated hydrocarbons"), the lands described by legal description, and the rights granted — exploring, drilling, producing, and the surface use reasonably necessary to do so.

Broad language ("and other minerals") can sweep in more than an owner expects, while narrower language limits the grant. The exact wording controls what the operator may and may not do.

Depth and surface considerations

Some granting clauses are limited by depth, conveying only certain formations and reserving deeper or shallower rights. Surface-use rights are also defined here or in a companion surface use agreement. Reading the granting clause alongside the habendum clause tells you both what you gave and for how long.

Related reading

Surface use agreement

Habendum clause

Oil & gas lease terms

Educational information only — not legal, tax, or investment advice. Consult a qualified attorney, CPA, or landman about your specific situation.

Frequently asked questions

What does "and other minerals" mean in a granting clause?

It is catch-all language that can extend the lease beyond oil and gas to other substances. Because it can convey more than intended, many owners ask to narrow it to the specific hydrocarbons being leased.

Does the granting clause give the operator surface rights?

Usually it grants the surface use reasonably necessary to explore and produce. The specifics are often refined in a separate surface use agreement that limits where and how the operator can build roads, pads, and pipelines.

Can a granting clause be limited by depth?

Yes. Depth-limited grants convey only specified formations, letting the owner reserve rights to other depths. This is negotiated in the lease language.

Does Buckhead Energy buy mineral and royalty interests?

Yes — Buckhead Energy is a direct buyer of mineral, royalty, NPRI, and ORRI interests across the United States, producing or non-producing. Buckhead Energy makes a free written offer, pays the title and closing costs, and charges no broker commission.

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