Paying quantities definition
Paying quantities as used herein shall mean and refer to quantities of oil and gas or of either of them sufficient to pay for the current cost of producing same.
Paying quantities means production in quantities sufficient to yield a return in excess of operating costs, even though drilling and equipment costs may never be repaid and the undertaking considered as a whole may ultimately result in a loss; and
Paying quantities means the revenue generated from the sale of the mineral or element being produced exceeds the costs associated with obtaining the mineral or element, including any royalty obligation.
Examples of Paying quantities in a sentence
The term “Operations” as used in this Agreement means only (i) the production of oil, gas, or other Hydrocarbons in Paying Quantities, (ii) Drilling Operations and/or (iii) Completion Operations.
For any well(s) not producing in Paying Quantities, Developer shall be required to plug and abandon such well(s), remove any appurtenant equipment and restore the surface for such well(s) location within ninety (90) days from the end of the six-month Paying Quantities period.
Production of any one Produced Substance shall not relieve Developer of its obligation to develop and produce any other Produced Substance covered by this Agreement and/or any Designation of Production Acreage that can be produced from the Subject Lands in Paying Quantities.
More Definitions of Paying quantities
Paying quantities means a dollar amount sufficient to pay the day to day well operating costs and for which a reasonably prudent operator would, for the purpose of making a profit and not merely for speculation, continue to operate a well.
Paying quantities means production of oil and/or gas in quantities sufficient to yield a return in excess of operating cost.
Paying quantities means extraction of oil and/or gas in a sufficient amount to generate oil and gas production royalties to the state.
Paying quantities means for an individual well that such well will be considered to be producing in “Paying Quantities” only if during the preceding six (6) month period, the income from the well exceeds the operating and marketing costs specifically attributable to that well.
Paying quantities means a quantity (in the judgment of a reasonable and prudent operator) of oil, gas (including any gaseous hydrocarbons produced with oil) and/or gas (including any liquid hydrocarbons produced with gas) sufficient to repay, with a reasonable profit, the cost and expense of operating the well.
Paying quantities means the anticipated output from a well of that quantity of Petroleum Substances which, considering the costs of Completing the well, Equipping costs, operating costs, kind and quality of production, the anticipated cost of treating, processing and transporting such production, the availability of markets, the price to be received thereof, would warrant incurring the cost of Completion and Equipping costs of the well;
Paying quantities means quantities sufficient to yield a return in excess of operating costs, even if drilling and equipment costs may never be repaid and the undertaking considered as a whole may ultimately result in a loss; quantities are insufficient to yield a return in excess of operating costs unless those quantities, not considering the costs of transportation and marketing, will produce sufficient revenue to induce a prudent operator to produce those quantities.