Paying quantities as used herein shall mean and refer to quantities of oil and gas or of either of them sufficient to pay for the current cost of producing same.
Paying quantities means production in quantities sufficient to yield a return in excess of operating costs, even though drilling and equipment costs may never be repaid and the undertaking considered as a whole may ultimately result in a loss; and
Paying quantities means a dollar amount sufficient to pay the day to day well operating costs and for which a reasonably prudent operator would, for the purpose of making a profit and not merely for speculation, continue to operate a well.
Examples of Paying quantities in a sentence
Paying quantities being defined as: production of oil or gas of sufficient value to exceed direct operating costs and the costs of lease rentals, or minimum royalty, on a sustained basis.
Paying quantities requires that production occur prior to the end of the primary term.
Paying quantities shall be worked out as under: Payment against the item shall be made only on the basis of sectional weight of members as per steel table and as per dimensions of fabricated steel members (i.e. cut to the size items) without any deduction for holes made in the members as per drawing.
More Definitions of Paying quantities
Paying quantities means production of oil and/or gas in quantities sufficient to yield a return in excess of operating cost.
Paying quantities means a quantity of Unitized Substances sufficient to yield a return in excess of operating costs, even if drilling and equipment costs will never be repaid and the undertaking considered as a whole will ultimately result in a loss. The quantity is insufficient to yield a return in excess of operating costs unless it will produce sufficient revenue, not considering transportation and marketing, to induce a prudent operator to produce it.
Paying quantities means the revenue generated from the sale of the mineral or element being produced exceeds the costs associated with obtaining the mineral or element, including any royalty obligation.
Paying quantities means extraction of oil and/or gas in a sufficient amount to generate oil and gas production royalties to the state.
Paying quantities means the anticipated output from a well of that quantity of Petroleum Substances which, considering the costs of Completing the well, Equipping costs, operating costs, kind and quality of production, the anticipated cost of treating, processing and transporting such production, the availability of markets, the price to be received thereof, would warrant incurring the cost of Completion and Equipping costs of the well;
Paying quantities means a quantity (in the judgment of a reasonable and prudent operator) of oil, gas (including any gaseous hydrocarbons produced with oil) and/or gas (including any liquid hydrocarbons produced with gas) sufficient to repay, with a reasonable profit, the cost and expense of operating the well.
Paying quantities means quantities sufficient to yield a return in excess of operating costs, even if drilling and equipment costs may never be repaid and the undertaking considered as a whole may ultimately result in a loss; quantities are insufficient to yield a return in excess of operating costs unless those quantities, not considering the costs of transportation and marketing, will produce sufficient revenue to induce a prudent operator to produce those quantities;