Section 11.83.105. "Paying quantities" defined.  


Latest version.
  • "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.  
    

Authorities

38.05.020;38.05.145;38.05.180

Notes


Authority
AS 38.05.020 AS 38.05.145(a) AS 38.05.180
History
Eff. 9/5/74, Register 51; am 6/28/81, Register 78