11 Alaska Admin. Code § 83.105
Current through September 25, 2024
"Production in paying quantities," as used in 11 AAC 83.100 - 11 AAC 83.295 and 11 AAC 83.400 - 11 AAC 83.910, means production in such quantity as to enable the operator to realize a profit. For purposes of the habendum clause of a lease, that is, for the purpose of keeping the lease in force after the expiration of the primary term, "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.
11 AAC 83.105
Authority:AS 38.05.020
AS 38.05.145(a)
AS 38.05.180