# Is there a shut-in Limitation and what is a shut in

**URL:** https://www.mineralrightsforum.com/t/is-there-a-shut-in-limitation-and-what-is-a-shut-in/28391
**Category:** Oil and Gas Leasing Help
**Created:** [June 23, 2018, 1:12am UTC](https://www.mineralrightsforum.com/t/is-there-a-shut-in-limitation-and-what-is-a-shut-in/28391 "2018-06-23T01:12:55Z")
**Posts on this page:** 3
**Page:** 1

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### Author: ![TPAYNE](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/t/e495f1/32.png) [@TPAYNE](https://www.mineralrightsforum.com/u/TPAYNE)
#### Post date: [June 23, 2018, 1:12am UTC](https://www.mineralrightsforum.com/t/is-there-a-shut-in-limitation-and-what-is-a-shut-in/28391/1 "2018-06-23T01:12:55Z")

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I have several terms in my lease that I am trying to understand and a few are Shut-in and Shut-in Limitation. Is this a benefit for me to have? From what I understand it deals with my royalties but I do not fully understand it.

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### Author: ![Buddy\_Cotten](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/buddy_cotten/32/5079_2.png) [@Buddy\_Cotten](https://www.mineralrightsforum.com/u/Buddy_Cotten)
#### Post date: [June 23, 2018, 3:48am UTC](https://www.mineralrightsforum.com/t/is-there-a-shut-in-limitation-and-what-is-a-shut-in/28391/2 "2018-06-23T03:48:34Z")

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Hi Ms. Payne,

My first question is, have you executed the lease yet? If you have executed the lease, your question quickly becomes academic.

Generally speaking, shut-in royalties are royalties paid in lieu of actual production. These royalties are generally paid for lack of a market.

Limitation on shut-ins are generally to the advantage of the Lessor.

Having said all of that, the lease form rules over any generic explanation.

If you would care to upload or transcribe the portion of your lease form that has to do with shut-in royalties, we can give you an answer with much more precision.

Best wishes,

Buddy Cotten

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### Author: ![MRFAdmin\_SV](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/m/e0b2c6/32.png) [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 7:27pm UTC](https://www.mineralrightsforum.com/t/is-there-a-shut-in-limitation-and-what-is-a-shut-in/28391/3 "2025-01-11T19:27:34Z")

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