Shut-in royalty

{
  "id": "MLC-T-OAG-003391",
  "term": "Shut-in royalty",
  "field": "Oil and gas",
  "definition": "A payment made by a lessee to a lessor to maintain a mineral lease in effect when a well capable of producing in paying quantities is drilled but is not producing. This payment substitutes for actual production royalties and keeps the lease active during periods when gas or oil cannot be marketed due to lack of pipeline connection or other temporary conditions. The lease typically specifies the amount and frequency of these payments.",
  "subject": "Oil and Gas Business",
  "url": "https://mlchart.com/terminology/oil-and-gas/shut-in-royalty/"
}