2.  Privately held, Sentry Energy Production, LLC, is
a Texas oil and gas company currently
pursuing development and exploration in Ness
County, Kansas. Among the most important
aspects involved in Sentry Energy Production,
LLC’s activities are the leasing of oil, gas, and
mineral rights.
Traditionally in the United States, mineral
resources were granted to owners on a "fee
simple estate" basis, which meant that if one
owned the surface land, one also owned the
mineral rights.

3.  This system led to transactions in which owners
retained control of surface rights, while leasing
mineral rights to mineral commodity
production firms. The lease is a cost-effective
way to explore for the oil and gas that may
exist below a property without committing to
the full purchase price of a property with
uncertain prospects regarding the quality and
quantity of oil that may lie there. Lease
agreements typically include an up-front
signing bonus for rights that expire on a set
date. In addition, should oil or gas production
commence, a royalty is paid to the land
owner.