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Simple English definitions for legal terms

paying quantities

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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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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
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
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