A delay rental payment is paid to the lessor by a lessee to adhere to the terms of an oil and gas lease in the absence of operations and/or production. This type of payment can be issued annually or paid-up in a lump sum depending on the contractual obligations of the lease.
If at the end of the term of the lease and operations and/or production have not begun, lessee may have the option to extend the lease for an additional term by issuing payment, either annually or paid-up in a lump sum, depending on the contractual obligations of the lease.
For further information on rental payments, please contact the CRC hotline, 1-855-272-5519.