Legal Dictionary of Pakistan

shut-in royalty

Oil & gas. A payment made by an oil-and-gas lessee to the lessor to keep the lease in force when a well capable of producing is not utilized because there is no market for the oil or gas. ( Generally, without such a payment, the lease will terminate at the end of the primary term unless actual production has begun. rptr. abbr. REPORTER. R.S. See revised statutes under STATUTE. RTC. abbr. RESOLUTION TRUST CORPORATION.