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

The Energy Law

Mineral lessees may be particularly concerned with whether recent production levels have maintained their leases beyond their primary terms. In Louisiana, as in most jurisdictions, production of oil or gas must be in “paying quantities” to maintain a mineral lease beyond its primary term. [1] Lea Exploration Co. , JLH Enters. ,

Oil 40
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Department of Interior Proposes New Financial Assurance and Decommissioning Regulations

The Energy Law

A prior lessee could be held liable for decommissioning a hurricane-toppled platform years after its exit and completion of all lease decommissioning obligations. 2003-N06, which was itself replaced by NTL No. This first of such NTLs, NTL No. 98-18N, was replaced by NTL No. Historically, under NTL No.