Held by Production (HBP)
A lease kept in force past its primary term because a well is producing in paying quantities, continuing into the secondary term.
Held by production, or HBP, describes a lease that has moved past its primary term and stays in force because there is a well producing in paying quantities. The lease continues into its secondary term for as long as that production lasts — which can be decades.
HBP matters to buyers because it locks the lease terms in place. A 1/8 royalty lease signed years ago stays a 1/8 lease as long as the well keeps producing, even if new leases in the area now pay 1/4. Without a Pugh clause or depth severance, a single old well can hold every acre and every depth under the lease.
When you evaluate minerals, confirm HBP status against state records — Texas RRC, Oklahoma OCC, or New Mexico OCD production data — before assuming acreage is open to lease.