shut in royalty

A payment made by an oil-and-gas lessee to the lessor to keep the lease in force when a well capable of producing is not utilized because there is no market for the oil or gas.

• Generally, without such a payment, the lease will terminate at the end of the primary term unless actual production has begun. [Cases: Mines and Minerals 78.1(3). C.J.S. Mines and Minerals §§ 269–270.]

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词条贡献者

译者Lisa，毕业于美国顶尖的高级翻译学院，擅长翻译涉及体育及娱乐业领域的法律文件。