Obligation [Oil and Gas] Law and Legal Definition

According to 30 USCS § 1702 (Title 30; Mineral Lands and Mining; Chapter 29; Oil and Gas Royalty Management), the term "obligation" means--

(A) any duty of the Secretary or, if applicable, a delegated State--

(i) to take oil or gas royalty in kind; or

(ii) to pay, refund, offset, or credit monies including (but not limited to)--

(I) the principal amount of any royalty, minimum royalty, rental, bonus, net profit share or proceed of sale; or

(II) any interest; and

(B) any duty of a lessee or its designee (subject to the provisions of section 102(a) of this Act [30 USCS § 1712(a)])--

(i) to deliver oil or gas royalty in kind; or

(ii) to pay, offset or credit monies including (but not limited to)--

(I) the principal amount of any royalty, minimum royalty, rental, bonus, net profit share or proceed of sale;

(II) any interest;

(III) any penalty; or

(IV) any assessment,

which arises from or relates to any lease administered by the Secretary for, or any mineral leasing law related to, the exploration, production and development of oil or gas on Federal lands or the Outer Continental Shelf.”