Search Results for: MARKETABLE-PRODUCT RULE

marketable product rule

marketable-product rule. Oil & gas. For royalty-calculation purposes, the doctrine that “production” occurs when oil or gas is pumped up, stored, and made marketable through processing. • Until producing a marketable product, the lessee bears all costs of capturing and handling oil and gas. Cf. CAPTURE-AND-HOLD RULE.

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capture and hold rule

glossary / CAPTURE-AND-HOLD RULE

capture-and-hold rule. Oil & gas. For royalty-calculation purposes, the doctrine that “production” occurs when oil or gas is pumped to the surface and stored, whether at the wellhead or elsewhere on the leased property. Cf. MARKETABLE-PRODUCT RULE.

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