Home > Term: shut-in royalty
shut-in royalty
A payment stipulated in the oil and gas lease, which royalty owners receive in lieu of actual production, when a gas well is shut-in due to lack of a suitable market, a lack of facilities to produce the product, or other cases defined within the shut-in provisions contained in the oil and gas lease.
- Part of Speech: noun
- Industry/Domain: Oil & gas
- Category: Oilfield
- Company: Schlumberger
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Creator
- BSchmidt
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