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Simple English definitions for legal terms

marketable-product rule

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A quick definition of marketable-product rule:

The marketable-product rule is a way to calculate royalties for oil and gas. It means that production happens when the oil or gas is pumped up, stored, and made ready to sell. The company that is drilling for the oil or gas has to pay for all the costs of getting it out of the ground until it becomes a product that can be sold. This is different from the capture-and-hold rule, which says that production happens as soon as the oil or gas is captured, even if it's not yet ready to sell.

A more thorough explanation:

The marketable-product rule is a doctrine used in the oil and gas industry to determine when production occurs for royalty-calculation purposes. It states that production happens when oil or gas is pumped up, stored, and made marketable through processing. Before a marketable product is produced, the lessee is responsible for all costs of capturing and handling oil and gas.

For example, if an oil company extracts crude oil from the ground, but it is not yet processed into a usable product, it is not considered production under the marketable-product rule. The lessee must bear the costs of capturing and handling the crude oil until it is processed into a marketable product, such as gasoline or diesel fuel.

Another example is if a natural gas company extracts gas from a well, but it is not yet processed and transported to customers, it is not considered production under the marketable-product rule. The lessee must bear the costs of capturing and handling the gas until it is processed and transported to customers.

The marketable-product rule ensures that the lessee is responsible for the costs of capturing and handling oil and gas until it is processed into a marketable product. This helps to ensure that the lessor receives fair compensation for the use of their resources.

marketability test | marketable security

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got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
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