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Shut-In Royalties and Production in Paying Quantities: Protecting Your Lease in a Low Demand Environment

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Institute for Energy Law |  Royalties
Michael P. Lennon Jr. |  Christopher C. Watts
60 Minutes
Audio and Video
Original Program Date:
Jun 30, 2020
Access for 6 month(s) after purchase.


On this webinar, the presenters will analyze and explain two critical tools for producers to protect their leases, particularly in the secondary term, in the current low demand environment. They will first discuss shut-in royalty provisions and the traps and pitfalls that can prevent taking advantage of the provision, one of which is proof the lease is capable of producing in paying quantities. The presenters will then take a deeper dive into the case law around production in paying quantities. 


MCLE Credit has expired.

Although MCLE credit was previously obtained for this program in at least one jurisdiction (most likely Texas), such credit has expired and not been renewed by The Center for American and International Law. You may be able to obtain credit in certain jurisdictions (self-study credit), but the rules vary greatly by jurisdiction. Please review your jurisdiction’s MCLE rules and regulations before purchasing or viewing this program.



Michael P. Lennon Jr.'s Profile

Michael P. Lennon Jr. Related Seminars and Products

Mayer Brown LLP

Michael P. Lennon Jr. is a partner in Mayer Brown's Litigation & Dispute Resolution and International Arbitration practices. He is an experienced arbitration and trial lawyer with an outstanding track record for handling a wide variety of arbitration and litigation matters, particularly in the energy, natural resources and construction sectors. Mike also has substantial experience handling patent, trademark, copyright and other commercial disputes.

Mike acts on behalf of clients before the leading international arbitral institutions, including ICSID, ICC, ICDR, LCIA and the Dubai International Arbitration Centre, as well as national courts. He has tried numerous cases before arbitral tribunals, courts, and juries, as well as enforcement, annulment and appellate proceedings arising from his matters. He also acts as an arbitrator and is a Fellow of the Chartered Institute of Arbitrators.

Mike's energy and natural resources experience covers a wide range of arbitrated and litigated matters, including disputes involving production sharing agreements, licenses, concessions and other host state agreements, oil and gas royalty disputes, pricing and other disputes under short and long-term commodity agreements, disputes arising out of joint operating and joint venture agreements, disputes concerning the design, operation and management of drilling rigs, disputes involving nuclear and conventional power plant design, construction and operation, and other arbitration and litigation matters arising out of commercial disputes in the energy and natural resources sectors. 

Christopher C. Watts's Profile

Christopher C. Watts Related Seminars and Products

Mayer Brown LLP

Christopher Watts is a Litigation & Dispute Resolution associate in Mayer Brown's Houston office. He began his career at Mayer Brown after graduating from law school, but parted with the firm to start his own litigation practice focused primarily on probate and family law matters. Having returned to Mayer Brown, his practice focuses on civil litigation in state and federal courts, mediation and arbitration. Christopher’s practice also includes a considerable commitment to pro bono matters. Prior to law school, Christopher worked as a management consultant for a financial advisory and dispute consulting firm based in Chicago.

Christopher received his JD from Columbia Law School, his LLM in International Criminal Law from the University of Amsterdam Law School and his BA in Economics from Carleton College.