Legal Dictionary of Pakistan

cessation-of-production clause

Oil & gas. A lease provision that temporarily extends a lease under which production has stopped. * The clause extends the lease for a specified period during which, to keep the lease alive, the lessee must resume operations. "Many oil and gas leases contain provisions intended to give lessees more certainty than is given by the temporary cessation of production doctrine. Usually, such provision takes the form of a temporary cessation of production clause, a provision in the