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Simple English definitions for legal terms

paying quantities

Read a random definition: implied abandonment

A quick definition of paying quantities:

Paying quantities refer to the amount of minerals produced from a single well that is enough to justify a reasonable operator to continue producing from that well. In oil and gas leases, the habendum clause defines how long the interest granted to the lessee will extend. The clause typically provides for a primary term and a secondary term, which lasts as long as oil and gas are produced in paying quantities. Most jurisdictions require production of paying quantities to keep the lease in effect.

A more thorough explanation:

Paying quantities refers to the amount of mineral production from a single well that is sufficient to justify a reasonably prudent operator to continue producing from that well. In the oil and gas industry, this term is often used to determine whether a lease will remain in effect.

The habendum clause is a provision in an instrument, such as a deed or will, that defines the extent of the interest being granted and any conditions affecting the grant. In the context of oil and gas leases, the habendum clause defines how long the interest granted to the lessee will extend.

For example, a modern oil and gas lease may provide for a primary term, during which the lessee has no obligation to develop the premises, and a secondary term, which extends for "so long thereafter as oil and gas is produced." However, most jurisdictions require production of paying quantities to keep the lease in effect.

Overall, the habendum clause is an important part of an instrument that helps to clarify the extent of the interest being granted and any conditions affecting the grant.

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join the ethically ambiguous legal field instead
Dkk
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I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
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i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
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Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
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president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
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windyMagician
19:23
it doesn't hurt its just tingly
Dkk
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It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
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I will take In N Out everyday over it when I can though.
texaslawhopefully
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In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
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Indeed, indeed.
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