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Production in Paying Quantities: Maintaining Mineral Leases Beyond Their Primary Terms with Production of Oil or Gas

The Energy Law

4] Paying quantities cases usually focus on what expenses constitute “operating expenses.” “Operating expenses”—or “lifting expenses” as they are sometimes referred—are “ordinary, recurring expenses” that are attributable to the expense of production, after the well is drilled and completed. [5] McKinney , 545 So. 2d 1216, 1220 (La.

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