Continuous-Operations Clause

Study Aids
Key Terms
C

Continuous-Operations Clause

Definition

A savings clause in an oil and gas lease that permits a lessee to continue diligent operation of a well drilled prior to the expiration of the primary term even if the well may not be producing in paying quantities at the time of said expiration.

Related rules

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— Johnson v. Statoil Oil & Gas LP

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— Sword v. Rains

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