shut-in royalty

shut-in royalty

In oil and gas leases,a royalty paid to keep a lease in effect,even though there is no oil or gas production.

References in periodicals archive ?
On November 26, 2002, the Company filed a Motion for Partial Summary Judgment, requesting the Court to declare that the leases were valid and in effect as a result of the Company's timely tender of shut-in royalty payments.