The capture-and-hold rule is used to determine the timing of oil or gas production for royalty calculations. According to this rule, production occurs when oil or gas is extracted and stored, regardless of whether it is stored at the wellhead or elsewhere on the leased property. This rule differs from the marketable-product rule, which calculates production based on the sale of oil or gas on the market.
The capture-and-hold rule is a doctrine utilised in the oil and gas industry for the purpose of determining when production takes place in order to calculate royalties. According to this rule, production occurs when oil or gas is extracted from the ground and stored, regardless of whether it is stored at the wellhead or elsewhere on the leased property. For instance, if an oil company extracts oil from a well and stores it in a tank on the leased property, it is considered production under the capture-and-hold rule. Similarly, if natural gas is extracted and stored in a pipeline on the leased property, it is also considered production under this rule. It is important to note that the capture-and-hold rule differs from the marketable-product rule, which only considers production to occur when the oil or gas is sold or transferred to a third party. The capture-and-hold rule is used to determine royalty payments to the landowner, while the marketable-product rule is used to determine when the oil or gas company is required to pay taxes on the extracted resources.
The capture-and-hold rule is a legal principle that allows a person to claim ownership of a wild animal if they have captured and physically restrained it.
The capture-and-hold rule typically applies to wild animals, but there may be specific regulations or exceptions for certain species.
The length of time required to hold an animal under the capture-and-hold rule can vary by jurisdiction, but it is generally considered to be a reasonable amount of time to demonstrate intent to claim ownership.
No, the capture-and-hold rule typically applies to wild animals and does not extend to domesticated animals.
If someone else claims ownership of the animal you have captured and held, it may be necessary to resolve the dispute through legal means, such as through a court proceeding.
There may be specific regulations or restrictions on the methods used to capture and hold an animal, such as prohibitions on using certain types of traps or snares.
Capturing and holding an animal on someone else’s property may raise legal issues related to trespassing and property rights, so it is important to obtain permission from the property owner.
If the animal is endangered or protected, there may be additional legal considerations and regulations that apply to the capture and holding of the animal.
If you are responsible for the care and well-being of the animal while it is in your possession, you may be held liable for any harm caused to the animal.
Documentation, such as photographs, witness statements, and records of the capture and holding of the animal, can be used as evidence to support your claim of ownership under the capture-and-hold rule.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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