Leased but Not Producing

Leaving but Not Producing is the term given to the property which has been taken on lease by any organization, government or private or individual, but the land is not used for any purpose. It is just left like a barren piece of land. Leased but not producing is a general category in the case…

Leaving but Not Producing is the term given to the property which has been taken on lease by any organization, government or private or individual, but the land is not used for any purpose. It is just left like a barren piece of land. Leased but not producing is a general category in the case of Oil and Natural Gas. Government Organizations all over the world take land on lease from where Oil and Natural Gas can be extracted. The main motto of Lease but not producing is to save the resources for future. The Leased land which is not producing serves two purposes at the same time. It helps in saving the resources for future and also provides stability to the economy of a country during bad times of global economy known as recession. Oil and Natural Gas in near future will be able to give a boost to any country's economy singlehandedly and the countries with resources of the same will be the superpowers.

The Government of United States of America has leased land over various parts of the country where oil and natural gas has been found but those areas are declared as non-producing as those regions are America's future prospect. According to a survey conducted, it was found that more than half of the leases of Federal Oil and Natural Gas lease come under the category of Lease but not Producing.

Out of a total of 46000 Oil and Natural Gas leases, 25000 are the Lease but not Working Category. The Government of United States has leased over thirty seven million acres of land but the land comes under category of not producing. The Government has leased about 40% of the total Oil and Natural Gas producing land in the country and is planning to acquire 60 per cent of the Oil and Natural Gas producing land by the end of 2018.

Apart from Oil and Natural Gas, the concept of leased but not producing does not hold much of a significance. Governments have come up with the idea of ​​leased but not producing to overcome the oil crisis in future and to have a stable economy even during the times of economic breakdowns. Oil and Natural Gas are thought to be the safest investment in today's economy.

There are disadvantages of this system too: The land leased by government which falls under the non-producing category gets wasted and become barren. This policy of Leased but not producing has also raised many eyeballs. Various Non Government Organizations all over the world are appealing to their respective Governments to release the leased land which will not be immediately used so that it can be used for some useful purpose which can be used in the development of the country. This fight between Government Organizations and NGO's have entered the legal arena and NGO's are asking the court to order to stop Government encroachment and make the leased land useful for some productive work. It is at final stages.