Delay Rentals
Periodic payments an operator makes to keep an undrilled lease in force during its primary term without losing the acreage.
Delay rentals are payments an operator makes to keep a lease alive during the primary term when no well has been drilled yet. On a traditional "unless" lease, the lease terminates on each anniversary unless the operator either begins drilling or pays the rental for another year of delay.
Many modern leases are "paid-up," meaning the entire primary term is covered by the bonus at signing and no annual rentals are owed. So whether delay rentals apply depends on the form of the lease you sign.
Delay rentals are not the same as royalty. They are nominal payments for the right to wait, not a share of production. Once a well is producing and the lease becomes held by production, delay rentals stop and royalty begins.