Last Updated on September 6, 2022 by amin
What is a Mother Hubbard clause?
What is a Mother Hubbard Clause? The Mother Hubbard or cover-all clause is a common provision in an oil and gas lease1 that provides a mechanism to include lands not adequately described in the lease or certain interests that vest after the lease has been issued.
What is a proration unit in oil and gas?
1. n. [Oil and Gas Business] The amount of acreage, determined by governmental authority that can be efficiently and economically drained by a well at a particular depth or horizon.
What is a motherhood clause?
motherhood statement (plural motherhood statements) (chiefly Canada, US) A vague, feel-good platitude, especially one made by a politician, that few people would be able to disagree with.
What is a shut in royalty?
A shut-in clause (or shut-in royalty clause) traditionally allows the lessee to maintain the lease by making shut-in payments on a well capable of producing oil or gas in paying quantities where the oil or gas cannot be marketed, whether due to a lack of pipeline connection or otherwise.
What is a pooling order?
Order pooling means combining several different customers’ orders on the same standard manufacturing panel. Order pooling or pooling is probably the most common name but the process is also called order combination, panel sharing, multi-panels
What is the Held by Production Clause?
“Held by production” is a provision in an oil or natural gas property lease that allows the lessee, generally an energy company, to continue drilling activities on the property as long as it is economically producing a minimum amount of oil or gas.
What is a retained acreage clause?
A retained-acreage provision is a negotiated provision in favor of the lessor. A retained-acreage provision requires the lessee to release land not assigned to a producing well (or active drilling/ reworking operations) at the end of the primary term.
What is production payment quantities?
A provision in an habendum clause of an oil and gas lease requiring production means production in paying quantities. 2. Generally, production in paying quantities means production which is profitable to the Lessee.