Oil and gas leases are legal agreements that allow companies to explore and extract oil and natural gas from a specific piece of land. These leases are typically granted by landowners or government entities and outline the terms, duration, and compensation for the rights to extract these resources. The lease often includes details about royalty payments, which are a percentage of the profits paid to the landowner. Additionally, it may specify environmental regulations and responsibilities to ensure that extraction activities minimize harm to the surrounding ecosystem.