Chapter 5 Lease Maintenance

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Chapter 5

Lease Maintenance

 

 Normally,  Alabama oil and gas leases are for a set time, the “primary term,” and so long thereafter as oil or gas is produced in “paying quantities.” Frequently, the primary term of a lease will end and there will be no actual production from a well. A number of lease clauses address those situations and permit the lessee to maintain the lease beyond its primary term through the payment of shut-in royalties, through conducting operations, or in some other manner.

Copyright 2011 by Edward G, Hawkins. All rights reserved.