I need an definition of Spud

Good Morning All,

I need a little explanation of just what exactly is a "Spud" as stated in a portion of the property description below,

"....Glasscock County,Texas, save and except, however, all wells spud before the Effective Date of this Agreement.".

They also refer to shut in well royalties in this lease too which I don't completely understand. I assume that refers to the current operators who are paying us royalties on a regular basis.

So if any of you can help me great as the research on this site for Spud was still vague for me.

Thanking you all in advance, Kelly

Spud means when a well commences drilling. They use a larger surface bit to drill a larger hole to case in order to protect any fresh water zones.

Thank you James!