Production in Paying Quantities: Maintaining Mineral Leases Beyond Their Primary Terms with Production of Oil or Gas
The Energy Law
JANUARY 26, 2016
The sharp decline in oil prices over the past year and a half has had a significant impact on operators and mineral lessees in Louisiana and in other oil-producing states. 2] Implicit in the term “paying quantities” is the requirement that the lessee show a profit, meaning production revenues must exceed “operating expenses.” [3]
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