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.R.S. 31:125, the amount of royalties payable on such production must also be sufficient to constitute serious or adequate consideration to the Lessor.

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.

Examples of Production in Paying Quantities in a sentence

• Fielder, Marginal Wells and the Doctrine of Production in Paying Quantities, 57 LANDMAN MAG.

• If Acceptable Lease Operations or Production in Paying Quantities is occurring at the end of the Primary Term, this Lease shall terminate unless Acceptable Lease Operations or Production in Paying Quantities continue without a lapse of greater than ninety (90) days between cessation of Acceptable Lease Operations or Production in Paying Quantities and their recommencement.

• A Shut- In Payment shall maintain this Lease as to Shut-In Acreage for a period of six (6) months (“Shut-In Period”), during which, it shall be considered that there is Production in Paying Quantities for lease maintenance purposes only.

• The Well Was Not Capable of Production in Paying Quantities [2] The Lease was not producing or capable of producing oil or gas in paying quantities at the end of its extended period, i.e., on April 30, 2009.

• Because Production in Paying Quantities Is Not Automatically Triggered by Well Construction and Drilling, These Actions Have Independent Utility and Are Not “Connected Actions” As Contemplated by NEPA To determine whether BLM’s approval of well construction and future production from those wells are connected actions, we apply the independent utility test.

More Definitions of Production in Paying Quantities

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 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.

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.

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 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 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;

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