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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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m10
11:44
Nothing. No news is good news for me.
11:44
Crickets coming from my status update
babycat
11:45
dk are we gonna go to a homoerotic law school together?
11:45
@m10: at undergrad froshers: https://www.youtube.com/watch?v=6YEarMyIAzs
m10
11:46
@EvolBunny: God damn, classic Randy.
babycat
11:48
Going to law school with you is even more fun than going to San Sebastian, Irún, Hendaye, Biarritz, Bayonne or being sick to my stomach on the Travesera de Gracia in Barcelona partly because in your orange shirt you look like a better happier St. Sebastian partly because of my love for you, partly because of your love for yoghurt partly because of the fluorescent orange tulips around the birches partly because of the secrecy our smiles take on before people and statuary
m10
11:49
Man, there is this girl I visit every month at this one restaurant who I used to go skinny dipping with naked like @ararara always talked about in San Diego. We randomly reconnected like two months ago at this place she works at and we talk a lot about John Steinbeck books. If I don't visit her this month, she might be sad. However, this is my first day not sick and I worry about getting her sick and I am broke. What should I do LSD?
m10
11:49
Thanks @babycat that means a lot!
m10
11:50
Glad we can both be content at Scalia law. One of my favorites.
you can ask her if she wants to risk getting sick
11:50
hi lsd
m10
11:50
I dont have her number or any social media. This is one of those regular kinda things in restaurant and bar culture.
11:50
berk td is unlikely so BERK MONDAY :eyes:
hi eggan :)
babycat
11:52
@m10: I’m not going to DC this isn’t going to work out
11:55
hello all
hello info man
@m10: go see her it's worth the risk
11:55
hey wasp
babycat
11:56
hi information man
m10
11:56
Thanks wasp, I will.
11:56
hey babycat
m10
11:56
@babycat: What I am referencing earlier with the balls comment. https://youtu.be/qjRBAhWPT7g?si=MxPwIM12dco_Ad2M&t=3325
BulbasaurNoLikeCardio
11:56
Not worth the risk. Get a girl sick and she will remind you forever. Tell her whats up but do not share germs
m10
11:56
was*
JumpySubsequentDolphin
11:57
wear a mask
JumpySubsequentDolphin
11:57
go back to Covid days
m10
11:58
Nah nah she would not like that. She is conservative.
BulbasaurNoLikeCardio
11:58
Tell her you just got over a cold and if she wants to try and steal your germs its on her but no one likes being sick so hopefully she is chill
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