The Legal Interpretation of the Oil & Gas Lease:
Whereas Commercial Leases involving residential properties are often construed by the courts in the United States against the Lessor. Oil & Gas Leases however are construed somewhat strictly against the Lessee.
The judicial minds thinks this way.The Lessor is generally an ordinary, unsophisticated individual with a minimum of resources available to him or her and who often has little or no input as to the terms of the lease. While the Lessee had their In-House teams of lawyer’s prepare the Lessor’s lease for his signature.
Thus the Lessee comes to this transaction in a superior position. As a result the Lessor should receive the benefit of the doubt when there is a legal dispute as to the terms of the lease.