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production payment

Defined in 1 dictionary — U.S. Code

United States Code

11 U.S.C. § 101 — in this title (2 versions over time)

The term “production payment” means a term overriding royalty satisfiable in cash or in kind—

(A) contingent on the production of a liquid or gaseous hydrocarbon from particular real property; and

(B) from a specified volume, or a specified value, from the liquid or gaseous hydrocarbon produced from such property, and determined without regard to production costs.