DRY-HOLE CLAUSE

By SovConn | July 26, 2014

dry-hole clause.Oil & gas. A provision in an oil-and-gas lease specifying what a lessee must

do to maintain the lease for the remainder of the primary term after drilling an unproductive well.

•  A  dry-hole  clause  is intended  to  make  clear  that  the  lessee  may  maintain  the  lease  by  paying

delay rentals for the remainder of the primary term. [Blacks Law 8th]

Posted in Law Dictionary Definitions