Production in Paying Quantities definition

Production in Paying Quantities means production of oil, gas or other liquid or gaseous minerals in paying quantities as defined by La. R.S. 31:124 from the Leased Premises, in addition, notwithstanding the provisions of La.

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Production in Paying Quantities means that the gross income from oil and gas produced and sold (after deduction of taxes and royalty) exceeds the cost of operation.

Production in Paying Quantities or “Paying Quantities” means the output of that quantity of Leased Substances which, considering the operating costs, the kind and quality of production, the availability of markets, the price to be received therefor, and the royalties and other burdens payable with respect thereto, would warrant the taking of production of Leased Substances.

Examples of Production in Paying Quantities in a sentence

The commencement or resumption of Actual Drilling Operations or Production in Paying Quantities or payment of Rental within the ninety (90) day period shall have the same effect as though such were commenced, resumed or Rental paid on or before the Anniversary Date.
If, during the Primary Term but after the first year thereof, this Lease has been maintained and Actual Drilling Operations or Production in Paying Quantities is not occurring on an Anniversary Date, this Lease shall terminate unless Lessee pays a Rental to the Lessor on or before that Anniversary Date.
For purposes of maintaining this Lease with Unitized Operations pursuant to this section, the definitions for the defined terms Actual Drilling Operations, Actual Reworking Operations, Production in Paying Quantities, Acceptable Lease Operations and/or Shut-in Payments, are expanded to include operations, production or payments attributed to ▇▇▇▇▇ whether located on the Leased Premises or on lands pooled or unitized therewith.
Timely payment of a Rental shall extend for twelve (12) months from the Anniversary Date, the time within which Actual Drilling Operations or Production in Paying Quantities must be commenced in order to maintain this Lease.
If ▇▇▇▇▇▇ fails to commence Acceptable Lease Operations or Production in Paying Quantities within ninety (90) days or there is a lapse of greater than ninety (90) days between cessation of Acceptable Lease Operations or Production in Paying Quantities, this Lease shall thereupon terminate.

More Definitions of Production in Paying Quantities

Production in Paying Quantities means, “[f]or purposes of the habendum clause, . . . production in quantities sufficient to yield a return in excess of operating costs, even though drilling and equipment costs may never be repaid and

Production in Paying Quantities. = Simple fact of production is not enough.

Production in Paying Quantities means production of oil, gas or other liquid or 5 gaseous minerals in paying quantities as defined by La. R.S. 31:124 from the Leased 6 Premises, in addition, notwithstanding the provisions of La. R.S. 31:125, the amount of 7 royalties payable on such production must also be sufficient to constitute serious or 8 adequate consideration to the Lessor. 9

Production in Paying Quantities or similar wording shall mean an output from a well or petroleum substances that

Production in Paying Quantities means the output from a well of such quantity of the leased substances or any of them as can be taken profitably having regard only to the costs of producing such substances and not to the costs of the drilling of such well.

Production in Paying Quantities means sufficient production to yield a profit, however small, over the cost of producing and lifting oil and gas without regard to payout of the investment; measured from standpoint of lessee; Garcia v. King, 164 S.W.2d 509 (Tex); Clifton v. Koontz, 325 S.W.2d 684 (Tex).

Production in Paying Quantities means the output from a well of that quantity of leased substances which, considering the operating costs, kind and quality of production, the availability of markets, the price to be received therefor, and the royalties and other burdens payable with respect thereto, would warrant the taking of production from the well;