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

The Energy Law

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] 7] Other examples of capital expenditures may include equipment costs, overhead, depreciation of original equipment, and workover expenses. [8] Dore , 2010 U.S. 2d at 719. [7]

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Louisiana Second Circuit Finds Holder of Mortgage Encumbering a Mineral Lease Solidarily Liable with Mineral Lessees for Damages Under the Louisiana Mineral Code

The Energy Law

The mortgagee directed the mineral lessees to perform specific workovers and completions on other properties collateralized in the mortgage. 2010-2011 (La. It also held that the holder of the mortgage over the Lease was solidarily liable as well. [8] 10] See id. at 22-33. [11] 11] See id. at 25-31. [12] 12] See id. [13] 14] See id.

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