In the context of Ohio law, the phrase "produced in paying quantities" is addressed in relation to which clause?

The phrase "produced in paying quantities" refers to the requirement that a mineral estate must produce sufficient resources to generate a profit in order for the lease to be maintained. This concept is particularly relevant in the context of the habendum clause, which defines the duration of the lease. Specifically, the habendum clause typically outlines the initial term of the lease and the conditions under which it can continue beyond that initial term, often emphasizing the necessity for the property to produce in paying quantities for the lease to remain in effect.

If production ceases or is not maintained at a level that qualifies as "paying quantities," the lease may terminate, unless certain conditions—such as a drilling operation being underway or other specified activities—are met. This ensures that lessees are incentivized to actively produce resources from the leased property while protecting the interests of the lessor.

In contrast, the other clauses have different focuses. The royalty clause pertains to the payment of royalties to the lessor based on production, the grant clause deals with the actual transfer of rights to the lessee, and the severability clause addresses the ability to sever parts of the lease or rights from the whole without affecting the remainder. Hence, the connection between "produced in paying quantities"