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Legal Definitions - temporary-cessation-of-production doctrine
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Definition of temporary-cessation-of-production doctrine
The temporary-cessation-of-production doctrine is a rule in the oil and gas industry that states that a lease term for oil and gas production will not end once production starts unless the cessation of production lasts for an unreasonable amount of time. This is also known as the cessation-of-production clause.
For example, if a lease states that it will last "for so long thereafter as oil and gas are produced," and production stops for a short period due to maintenance or repairs, the lease will not terminate. However, if production stops for an extended period, the lease may end.
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Simple Definition
The temporary-cessation-of-production doctrine is a rule in the oil and gas industry that states that a lease term will not end once production starts unless the cessation of production lasts for an unreasonable amount of time. This means that if production stops temporarily, the lease will not automatically terminate.
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