Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

shut-in royalty clause

Read a random definition: district school

A quick definition of shut-in royalty clause:

A shut-in royalty clause is a part of an agreement between a person who owns land and someone who wants to extract oil or gas from it. This clause allows the person who wants to extract oil or gas to keep the agreement in place even if they are not currently producing anything. Instead of paying the landowner for the oil or gas they extract, they pay a shut-in royalty fee to keep the agreement in place. This fee is paid in lieu of production.

A more thorough explanation:

Definition: A shut-in royalty clause is a provision in an oil-and-gas lease that allows the lessee to maintain the lease even when there is no production from the property because wells capable of production are shut in. In this case, the lessee pays the lessor a shut-in royalty in lieu of production.

Example: Let's say a company has leased a piece of land for oil and gas exploration. However, due to some technical issues, the wells on the property are shut in, and no production is possible. In this case, the company can still maintain the lease by paying the lessor a shut-in royalty. This royalty is usually a fixed amount per year and is paid to the lessor until the wells are reopened for production.

Another example: Suppose a company has leased a piece of land for oil and gas exploration, and the wells on the property are producing oil and gas. However, due to a drop in oil prices, the company decides to shut in the wells temporarily. In this case, the company can still maintain the lease by paying the lessor a shut-in royalty. This royalty is usually a percentage of the actual royalty paid to the lessor when the wells are producing oil and gas.

The above examples illustrate how a shut-in royalty clause works in an oil-and-gas lease. It allows the lessee to maintain the lease even when there is no production from the property, and the lessor receives compensation in the form of a shut-in royalty.

shut-in royalty | shuttle diplomacy

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
TGM
18:27
dropped my GPA below median for a couple of schools I’m applying to, when I was above median before
Dkk
18:32
@TGM: Not long enough to get another transcript to recover.
Dkk
18:33
Honestly you could just wait until someone actually asks for your fall grades. Who knows.
Dkk
18:34
@wigwav: It looks like if below medians it will not help but If applying in November it seems you are still middle of the cycle.
18:34
@wigwav: nah
TGM
18:34
like am I expected to send it unprompted or can I wait until a school requested it
Dkk
18:35
@TGM: Expected to send it unprompted but you can wait and see.
18:36
Is your LSAT also below median?
TGM
18:37
It’s above median, but I’m applying T6 with unimpressive softs, so even with a good LSAT it’s tough
texaslawhopefully
18:38
Yeah, then I would just wait as long as you can to send it
texaslawhopefully
18:38
For like HLS at least, if you wait till J6 then you may already have a decision
TGM
18:39
@texaslawhopefully: alas, haven’t even gotten an interview (applied around thanksgiving)
18:39
Yeah I would delay as long as you have plausible deniability
TGM
18:40
I actually do have a transcript issue that registrar needs to resolve, should I say that
TGM
18:41
(Course marked as Incomplete that’s supposed to be removed)
TGM
18:41
not sure if I should email them to say that, or just hold off on sending it and not give an excuse
18:41
I think I just wouldn’t reach out and if they ask for them then say that
Dkk
18:41
@tgm Yeah sounds good, say that if they ask
18:47
hey yall
18:47
im premed idk why im here
18:48
we’re like cool and sexy and fun I get it
18:48
true i love ur user
18:49
thank you my little crow friend
Dkk
18:50
Med law easy done
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.
LSD+ is ad-free, with DMs, discounts, case briefs & more.