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LSDefine

Simple English definitions for legal terms

production payment

Read a random definition: request for production

A quick definition of production payment:

A production payment is a type of agreement in the oil and gas industry where a person or company receives a share of the oil and gas produced from a property. This share is given without having to pay for the costs of production. The agreement ends once a certain amount of money has been paid to the person or company.

A more thorough explanation:

A production payment is a type of agreement in the oil and gas industry where an investor receives a share of the production from a property, without having to pay for the costs of production. This agreement ends once an agreed-upon sum has been paid.

Let's say that a company owns an oil well and wants to raise money to fund its operations. The company could enter into a production payment agreement with an investor. The investor would provide the company with a lump sum of money upfront, and in return, the investor would receive a share of the oil produced by the well. The investor would not have to pay for any of the costs associated with drilling or operating the well. Once the agreed-upon sum has been paid to the investor, the agreement would end.

Another example could be a landowner who owns a piece of land with oil and gas reserves. The landowner could enter into a production payment agreement with an oil and gas company. The company would pay the landowner a share of the production from the property, without having to pay for the costs of production. This agreement would end once the agreed-upon sum has been paid to the landowner.

These examples illustrate how a production payment agreement works in the oil and gas industry. It allows investors or landowners to receive a share of the production without having to pay for the costs of production, while also providing companies with a way to raise money to fund their operations.

production of suit | productio sectae

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General

General chat about the legal profession.
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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
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.
19:05
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
19:18
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
19:20
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
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
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
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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