• oil well image by michael langley from Fotolia.com
  
  In the United States, government laws on oil leases are comprehensive and far reaching. These laws extend to any and all entities possessing and/or seeking these rights. According to the law, oil leases may exist, in various forms, between individuals, corporations and local, state or federal governments.
  
  

Oil Rights

• old mining site image by Inger Anne Hulb?|kdal from Fotolia.com
  
  A detailed legal process must be followed to lease oil rights. These laws are commonly enforced by state and federal authorities. Jurisdiction of ownership regarding oil rights begins with the surface landowner. Historically, property owners maintain automatic "surface rights" to whatever minerals and soil reside directly below the natural estate. Upon discovery of oil, landowners maintain the option of selling or, very commonly, leasing extraction rights to a capable commercial entity. At the state and federal level, government law maintains a bold hand in regulating this process.
  
  

Leasing

• mining truck image by max blain from Fotolia.com
  
  Leasing of oil rights is a legal arrangement commonly administered by state governments. As individual states maintain mining and drilling rights independent of one another, state laws determine the transfer of oil rights, extraction processes and leasing agreements. A leasing agreement is often a careful and expeditious route for commercial entities to assume oil rights without an outright purchase of the specified property. According to geology.com: "Sometimes a mining company does not want to purchase a property because they are uncertain of the type, amount or quality of minerals that exist there. In these situations the mining company will lease the mineral rights or a portion of those rights."
  
  

Government Law

• the flag of the united states of america image by Michael Shake from Fotolia.com
  
  The United States government has a number of rules related to oil and mineral rights, with the goal of maintaining good faith between leasing parties. Leasing measures are complex and cover a variety of areas, stressing the length of time a property is to be leased, terms of royalties and compensation for the lessor and transportation methods of extracted minerals. Government laws also stipulate common clauses within completed leasing agreements that strengthen good faith and due diligence in the process.