What does curtailment mean in law?

At its simplest, curtailment is the act of reducing or stopping production of a natural gas or oil well. It may be done to prevent waste or to make up for underproduction. It can occur during drilling, completion, or production, onshore or offshore. It can be voluntary or mandatory under the terms of a contract, or it can be done to address operational issues.

What does curtailment mean in common terms?

In simple terms, curtailment is the reduction in production of natural gas or oil that is required by a government body to maintain an adequate supply within the state or region. The government body that deals with regulating the supply is called the state’s energy regulator. There are two forms of curtailment: mandatory and voluntary. Mandatory curtailment happens when an energy company is forced to reduce production to help balance the amount of energy that is being consumed to meet demand. However, some states have adopted voluntary

What does curtailment mean in law terms?

Curtailment is a means of restricting or limiting production from a natural gas well within legal limits. It can occur when a natural gas company is authorized to produce a well, but later determines that the original production estimates were too optimistic. In some cases, it can occur when demand for natural gas decreases, such as when a coal-fired power plant is retired.

What does curtailment mean in English?

Cessation is the end of a lease. When a tenant ends a lease early, it's known as "curtailing" their tenancy. If a tenant fails to pay rent, their lease can be prematurely terminated, and the landlord can file an eviction lawsuit. But the terms under which the tenant is allowed to end a lease vary depending on the state.

What does a curtailment mean in law?

A curtailment is a legal term of art that refers to the reduction or termination of a contract or service. If you terminate or reduce your electricity service, the utility company is legally allowed to charge you a re-connection fee. Most curtailment fees are related to the cost of returning your service to “baseline levels” before the termination or reduction. In other words, they cover the increased labor and materials needed to re-energize your account.