Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

capture-and-hold rule

Read a random definition: tangible-personal-property memorandum

A quick definition of capture-and-hold rule:

The capture-and-hold rule is a way of determining when oil or gas production occurs for royalty-calculation purposes. It means that production happens when oil or gas is pumped to the surface and stored, whether at the wellhead or somewhere else on the leased property. This is different from the marketable-product rule, which calculates production based on when the oil or gas is sold on the market.

A more thorough explanation:

The capture-and-hold rule is a doctrine used in the oil and gas industry to determine when production occurs for royalty-calculation purposes. According to this rule, production happens when oil or gas is extracted from the ground and stored, whether it is stored at the wellhead or elsewhere on the leased property.

For example, if an oil company extracts oil from a well and stores it in a tank on the leased property, the production is considered to have occurred under the capture-and-hold rule. Similarly, if natural gas is extracted and stored in a pipeline on the leased property, it is also considered production under this rule.

The capture-and-hold rule is different from the marketable-product rule, which considers production to occur only when the oil or gas is sold or otherwise transferred to a third party. The capture-and-hold rule is used to determine royalty payments to the landowner, while the marketable-product rule is used to determine when the oil or gas company must pay taxes on the extracted resources.

capture | caput

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
LSD+ is ad-free, with DMs, discounts, case briefs & more.