Common use of Pooling and Unitization Clause in Contracts

Pooling and Unitization. Lessee may, without notice to or consent from Lessor, as a recurring right for drilling, development or operating purposes, pool, unitize, or otherwise combine all or part of the Premises into a unit (whether federal or voluntary contractual unit) with any other land or lands (whether held by Lessee or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee of any unit agreement, unit operating agreement or other documents necessary to such pooling or unitization shall be binding on the Premises and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted the Premises leased hereunder; provided, however, that notwithstanding this or any other provision or provisions of this Lease to the contrary: (i) Production as to which a royalty is payable from any such xxxxx or xxxxx drilled upon any such unit, whether located on the Premises or other lands, shall be allocated to the Premises in the proportion that the acreage of the leased land in such unit bears to the total acreage of such unit. Such allocated portion thereof shall for all purposes be considered as having been produced from the Premises, and the royalty, payable under this Lease with respect to the leased land in such unit shall be payable only upon that proportion of production so allocated, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface and on Lessor’s improvements), any portion of which is chargeable to Lessor under the provisions of this Lease, then the share of such taxes to be borne by Lessor shall be in proportion to the share of the production from such unit allocated to the Premises. (iii) Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee to any unit operator) the right to use of the surface of the Premises in support of unit operations, including all the surface uses enumerated in Section 1 above. In the event the Premises, or any portion thereof, are later removed from the unit by any contraction of the Unit Area, all such existing surface uses of the Premises in support of unit operations shall continue in force and effect, and Lessor agrees to provide Lessee or the unit operator with written easements, rights-of-way, licenses or such other acceptable surface use grants, in recordable form, to evidence such existing surface uses in support of unit operations. If the Lessor fails to provide such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easements, the nature, scope and duration of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground operations on the Premises (or on lands pooled and unitized therewith).

Appears in 3 contracts

Samples: Geothermal Resources Lease (Raser Technologies Inc), Geothermal Resources Lease, Geothermal Resources Lease (Raser Technologies Inc)

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Pooling and Unitization. Lessee mayMortgagor shall have the right, without notice and is hereby authorized, to pool or consent from Lessor, as a recurring right for drilling, development or operating purposes, pool, unitize, or otherwise combine unitize all or any part of the Premises into lands described in Exhibit A, insofar as relates to the Mortgaged Property, with adjacent lands, leaseholds and other interests, when, in the reasonable judgment of Mortgagor, it is necessary or advisable to do so in order to form a drilling and/or production unit (whether federal to facilitate the orderly development of that part of the Mortgaged Property affected thereby, or voluntary contractual unit) to comply with any other land or lands (whether held by Lessee or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee the requirements of any unit agreement, unit operating agreement Applicable Law or other documents necessary governmental order or regulation relating to such pooling the spacing of xxxxx or unitization shall be binding on the Premises and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization proration of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted the Premises leased hereunderproduction therefrom; provided, however, that notwithstanding this any unit so formed for the production of oil shall not substantially exceed 160 acres, and any unit so formed for the production of gas shall not substantially exceed 640 acres, unless a larger area is required to conform to an Applicable Law or any other provision governmental order or provisions of this Lease regulation relating to the contrary: (i) Production as spacing of xxxxx or to which a royalty is payable obtain the maximum allowable production under any Applicable Law or governmental order or regulation relating to the proration of production therefrom; and further provided that the Hydrocarbons produced from any such xxxxx or xxxxx drilled upon any such unit, whether located on the Premises or other lands, unit so formed shall be allocated to among the Premises separately owned tracts or interests comprising the unit in the proportion a uniform manner consistently applied; and further provided that the acreage of the leased land in such unit bears to the total acreage of such unit. Such allocated portion thereof shall for all purposes be considered as having been produced from the Premises, and the royalty, payable under this Lease with respect to the leased land interests owned by Mortgagor in such unit shall be payable only upon that proportion included within the Mortgaged Property. Any unit so formed may relate to one or more zones or horizons, and a unit formed for a particular zone or horizon need not conform in area to any other unit relating to a different zone or horizon, and a unit formed for the production of oil need not conform in area with any unit formed for the production so allocated, and (ii) If taxes of gas. Promptly after formation of any kind are levied such unit, Mortgagor shall furnish to Beneficiary and each Secured Debt Representative a true copy of the pooling agreement, declaration of pooling or assessed other instrument creating such unit. The interest in any such unit attributable to the Mortgaged Property (other than taxes on or any part thereof) included therein shall become a part of the surface Mortgaged Property and on Lessor’s improvements)shall be subject to the lien hereof in the same manner and with the same effect as though such unit and the interest of Mortgagor therein were specifically described in Exhibit A. Mortgagor is further authorized to amend, modify or terminate any portion of pooling or unitization agreement or order to which Mortgagor is chargeable to Lessor under a party or the Mortgaged Property is subject, provided that such action does not conflict with the provisions of this Lease, then the share of such taxes to be borne by Lessor shall be in proportion to the share of the production from such unit allocated to the Premises. (iii) Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee to any unit operator) the right to use of the surface of the Premises in support of unit operationsMortgage, including all the surface uses enumerated in this Section 1 above6.1. In the event the PremisesMortgagor may enter into, or any portion thereofamend, are later removed from modify or terminate, pooling or unitization agreements not hereinabove authorized only as permitted under the unit by any contraction of the Unit Area, all such existing surface uses of the Premises in support of unit operations shall continue in force and effect, and Lessor agrees to provide Lessee or the unit operator with written easements, rights-of-way, licenses or such other acceptable surface use grants, in recordable form, to evidence such existing surface uses in support of unit operations. If the Lessor fails to provide such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easements, the nature, scope and duration of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground operations on the Premises (or on lands pooled and unitized therewith)Secured Debt Documents.

Appears in 2 contracts

Samples: Mortgage Agreement (Calpine Corp), Mortgage, Deed of Trust, Assignment, Security Agreement, Financing Statement and Fixture Filing (Calpine Corp)

Pooling and Unitization. Lessee mayMortgagor shall have the right, without notice and is hereby authorized, to pool or consent from Lessor, as a recurring right for drilling, development or operating purposes, pool, unitize, or otherwise combine unitize all or any part of the Premises into lands described in Exhibit A, insofar as relates to the Mortgaged Property, with adjacent lands, leaseholds and other interests, when, in the reasonable judgment of Mortgagor, it is necessary or advisable to do so in order to form a drilling and/or production unit (whether federal to facilitate the orderly development of that part of the Mortgaged Property affected thereby, or voluntary contractual unit) to comply with any other land or lands (whether held by Lessee or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee the requirements of any unit agreement, unit operating agreement Applicable Law or other documents necessary governmental order or regulation relating to such pooling the spacing of wells or unitization shall be binding on the Premises and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization proration of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted the Premises leased hereunderproduction therefrom; provided, howeverhowexxx, that notwithstanding this any unit so formed for the production of oil shall not substantially exceed 160 acres, and any unit so formed for the production of gas shall not substantially exceed 640 acres, unless a larger area is required to conform to an Applicable Law or governmental order or regulation relating to the spacing of wells or to obtain the maximum allowable production under any Applxxxxxe Law or governmental order or regulation relating to the proration of production therefrom; and further provided that the Hydrocarbons produced from any unit so formed shall be allocated among the separately owned tracts or interests comprising the unit in a uniform manner consistently applied. Any unit so formed may relate to one or more zones or horizons, and a unit formed for a particular zone or horizon need not conform in area to any other provision unit relating to a different zone or provisions horizon, and a unit formed for the production of this Lease to oil need not conform in area with any unit formed for the contrary: (i) Production as to which a royalty is payable from any such xxxxx or xxxxx drilled upon production of gas. Immediately after formation of any such unit, whether located on Mortgagor shall furnish to the Premises Trustees and the Agent a true copy of the pooling agreement, declaration of pooling or other landsinstrument creating such unit, in such number of counterparts as the Trustees may reasonably request. The interest in any such unit attributable to the Mortgaged Property (or any part thereof) included therein shall become a part of the Mortgaged Property and shall be allocated subject to the Premises lien hereof in the proportion that same manner and with the acreage same effect as though such unit and the interest of Mortgagor therein were specifically described in Exhibit A. Mortgagor may enter into pooling or unitization agreements not hereinabove authorized only with the prior written consent of the leased land in such unit bears to the total acreage of such unit. Such allocated portion thereof Agent, which consent shall for all purposes not be considered as having been produced from the Premises, and the royalty, payable under this Lease with respect to the leased land in such unit shall be payable only upon that proportion of production so allocated, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface and on Lessor’s improvements), any portion of which is chargeable to Lessor under the provisions of this Lease, then the share of such taxes to be borne by Lessor shall be in proportion to the share of the production from such unit allocated to the Premisesunreasonably withheld. (iii) Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee to any unit operator) the right to use of the surface of the Premises in support of unit operations, including all the surface uses enumerated in Section 1 above. In the event the Premises, or any portion thereof, are later removed from the unit by any contraction of the Unit Area, all such existing surface uses of the Premises in support of unit operations shall continue in force and effect, and Lessor agrees to provide Lessee or the unit operator with written easements, rights-of-way, licenses or such other acceptable surface use grants, in recordable form, to evidence such existing surface uses in support of unit operations. If the Lessor fails to provide such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easements, the nature, scope and duration of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground operations on the Premises (or on lands pooled and unitized therewith).

Appears in 2 contracts

Samples: Mortgage, Deed of Trust, Assignment, Security Agreement (Calpine Corp), Mortgage, Deed of Trust, Assignment, Security Agreement (Calpine Corp)

Pooling and Unitization. Lessee may(a) Certain of the Subject Interests may have been pooled or unitized for the production of oil, without notice gas and/or minerals prior to the Effective Date or, after the Effective Date, may be so pooled or consent unitized pursuant to Section 1.13(b). Such Subject Interests are and shall be subject to the terms and provisions of such pooling and unitization agreements, and the Subject Interests shall apply to (and the term "Subject Hydrocarbons" shall include) the production from Lessorsuch units which is attributable to such Subject Interest (and the Net Profits Account shall be computed giving consideration to such production and costs, expenses, charges and credits attributable to such Subject Interest) under and by virtue of the applicable pooling and unitization agreements. (b) Without the joinder of Assignee with respect to the Net Profits Account, Assignor shall not have the right and power to unitize, pool or combine the lands covered by the Subject Interests, or any portion or portions thereof, as a recurring right for drillingto oil and/or gas, development or operating purposes, pool, unitizeand other substances produced in association therewith, or otherwise combine all any one or part more of the Premises into a unit (whether federal or voluntary contractual unit) them, with any other land or lands (whether held by Lessee lease or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee of any unit agreement, unit operating agreement or other documents necessary to such pooling or unitization shall be binding on the Premises and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted the Premises leased hereunder; provided, however, that notwithstanding this or any other provision or provisions of this Lease to the contrary: (i) Production leases so as to which a royalty is payable from any such xxxxx create one or xxxxx drilled upon any such unitmore unitized areas (or, whether located on the Premises or other lands, shall be allocated to the Premises in the proportion that the acreage of the leased land in such unit bears to the total acreage of such unit. Such allocated portion thereof shall for all purposes be considered as having been produced from the Premises, and the royalty, payable under this Lease with respect to unitized or pooled areas theretofore created, to dissolve the leased land same or to amend and/or reconfigure the same to include additional acreage or substances or to exclude acreage or substances). If pursuant to any law, rule, regulation or order of any governmental body or official, any of the Subject Interests are pooled or unitized in any manner, the Net Profits Account shall apply to (and the term "Subject Hydrocarbons" shall include) the production which accrues to such unit Subject Interest under and by virtue of such pooling and unitization arrangements and the Net Profits Account shall be payable only upon that proportion of computed giving consideration to such production so allocatedand costs, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface expenses, charges and on Lessor’s improvements), any portion of which is chargeable credits attributable to Lessor under the provisions of this Lease, then the share of such taxes to be borne by Lessor shall be in proportion to the share of the production from such unit allocated to the PremisesSubject Interest. (iii) Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee to any unit operator) the right to use of the surface of the Premises in support of unit operations, including all the surface uses enumerated in Section 1 above. In the event the Premises, or any portion thereof, are later removed from the unit by any contraction of the Unit Area, all such existing surface uses of the Premises in support of unit operations shall continue in force and effect, and Lessor agrees to provide Lessee or the unit operator with written easements, rights-of-way, licenses or such other acceptable surface use grants, in recordable form, to evidence such existing surface uses in support of unit operations. If the Lessor fails to provide such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easements, the nature, scope and duration of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground operations on the Premises (or on lands pooled and unitized therewith).

Appears in 2 contracts

Samples: Purchase and Sale Agreement (Vtex Energy Inc), Purchase and Sale Agreement (Vtex Energy Inc)

Pooling and Unitization. (a) The Lessee may, without notice to or consent from Lessor, as a recurring is hereby given the right for drilling, development or operating purposes, pool, unitize, or otherwise combine all or part of the Premises into a unit (whether federal or voluntary contractual unit) with and power at any other land or lands (whether held by Lessee or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee of any unit agreement, unit operating agreement or other documents necessary to such pooling or unitization shall be binding on the Premises time and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted during and after the Premises leased hereunder; provided, however, that notwithstanding this or any other provision or provisions of this Lease primary term to pool the contrary: (i) Production as to which a royalty is payable from any such xxxxx or xxxxx drilled upon any such unit, whether located on the Premises or other said lands, shall be allocated to the Premises in the proportion that the acreage of the leased land in such unit bears to the total acreage of such unit. Such allocated portion thereof shall for all purposes be considered as having been produced from the Premises, and the royalty, payable under this Lease with respect to the leased land in such unit shall be payable only upon that proportion of production so allocated, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface and on Lessor’s improvements), any portion of which is chargeable to Lessor under the provisions of this Lease, then the share of such taxes to be borne by Lessor shall be in proportion to the share of the production from such unit allocated to the Premises. (iii) Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee to any unit operator) the right to use of the surface of the Premises in support of unit operations, including all the surface uses enumerated in Section 1 above. In the event the Premises, or any portion thereof, or any zone or formation underlying the said lands or any portion thereof, or any of the leased substances therein, with any other lands or any zone or formation underlying such other lands or any portion thereof, or any of the leased substances therein, but so that the other lands or any zone or formation thereof, together with the said lands or any zone or formation thereof, shall not exceed one spacing unit. The Lessee shall thereafter give written notice to the Lessor describing the extent to which the said lands are later removed being pooled and describing the spacing unit with respect to which they are so pooled. In the event of pooling there shall be allocated to that portion of the said lands included in the spacing unit that proportion of the total production of the leased substances from the spacing unit, after deducting any leased substances used in operations on the pooled lands, which the surface area of that portion of the said lands placed in the spacing unit bears to the total surface area of the lands in the spacing unit. The production so allocated shall be considered for all purposes, including the payment of royalty, to be the entire production of the leased substances from the portion of the said lands included in the pooling in the same manner as though produced from the said lands under the terms of this Lease. (b) The Lessee may terminate any pooling pursuant to subclause (a) of this clause and thereafter shall give written notice to the Lessor. (c) If the spacing unit pooled under this clause is varied or terminated by any contraction statute, regulation, order or directive of any government or governmental agency, or if the pooling is terminated or invalidated by reason of the Unit Areatermination or expiration of a lease covering any lands, all other than the said lands, within the spacing unit, or any other cause beyond the Lessee’s reasonable control, and this Lease would otherwise terminate as a result of such existing surface uses variation or termination of the Premises in support spacing unit or such termination or invalidation of unit operations the pooling, this Lease shall nonetheless continue in force and effect, and Lessor agrees to provide for a period of 90 days after the Lessee receives notice that the spacing unit has been varied or terminated or the unit operator with written easementspooling has been terminated or invalidated and the term of the Lease may be extended further pursuant to other provisions of this Lease, rightsincluding without limitation the commencement of operations, within the said 90-of-way, licenses or such other acceptable surface use grants, in recordable form, to evidence such existing surface uses in support of unit operations. If the Lessor fails to provide such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easements, the nature, scope and duration of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground operations on the Premises (or on lands pooled and unitized therewith)day period.

Appears in 1 contract

Samples: Lease Option Agreement (Alliance Petroleum Corp)

Pooling and Unitization. Lessee mayThe Mortgagor shall have the right, without notice and is hereby authorized, to pool or consent from Lessor, as a recurring right for drilling, development or operating purposes, pool, unitize, or otherwise combine unitize all or any part of any of the lands described in Exhibit A, insofar as relates to the Mortgaged Property, with adjacent lands, leaseholds and other interests, when, in the reasonable judgment of the Mortgagor, it is necessary or advisable to do so in order to form a drilling and/or production unit to facilitate the orderly development of that part of the Premises into a unit (whether federal Mortgaged Property affected thereby, or voluntary contractual unit) to comply with any other land or lands (whether held by Lessee or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee the requirements of any unit agreement, unit operating agreement Applicable Law or other documents necessary governmental order or regulation relating to such pooling the spacing of wells or unitization shall be binding on the Premises and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization proration of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted the Premises leased hereunderproduction therefrom; provided, howeverhowexxx, that notwithstanding this any unit so formed for the production of oil shall not substantially exceed 160 acres, and any unit so formed for the production of gas shall not substantially exceed 640 acres, unless a larger area is required to conform to an Applicable Law or governmental order or regulation relating to the spacing of wells or to obtain the xxximum allowable production under any Applicable Law or governmental order or regulation relating to the proration of production therefrom; and further provided that the Hydrocarbons produced from any unit so formed shall be allocated among the separately owned tracts or interests comprising the unit in a uniform manner consistently applied. Any unit so formed may relate to one or more zones or horizons, and a unit formed for a particular zone or horizon need not conform in area to any other provision unit relating to a different zone or provisions horizon, and a unit formed for the production of this Lease to oil need not conform in area with any unit formed for the contrary: (i) Production as to which a royalty is payable from any such xxxxx or xxxxx drilled upon production of gas. Immediately after formation of any such unit, whether located on the Premises Mortgagor shall furnish to the Agent a true copy of the pooling agreement, declaration of pooling or other landsinstrument creating such unit, in such number of counterparts as the Agent may reasonably request. The interest in any such unit attributable to the Mortgaged Property (or any part thereof) included therein shall become a part of the Mortgaged Property and shall be allocated subject to the Premises lien hereof in the proportion that same manner and with the acreage same effect as though such unit and the interest of the leased land Mortgagor therein were specifically described in such unit bears to Exhibit A. The Mortgagor may enter into pooling or unitization agreements not hereinabove authorized only with the total acreage of such unit. Such allocated portion thereof shall for all purposes be considered as having been produced from the Premises, and the royalty, payable under this Lease with respect to the leased land in such unit shall be payable only upon that proportion of production so allocated, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface and on Lessor’s improvements), any portion of which is chargeable to Lessor under the provisions of this Lease, then the share of such taxes to be borne by Lessor shall be in proportion to the share prior written consent of the production from such unit allocated to the PremisesAgent, which consent will not be unreasonably withheld. (iii) Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee to any unit operator) the right to use of the surface of the Premises in support of unit operations, including all the surface uses enumerated in Section 1 above. In the event the Premises, or any portion thereof, are later removed from the unit by any contraction of the Unit Area, all such existing surface uses of the Premises in support of unit operations shall continue in force and effect, and Lessor agrees to provide Lessee or the unit operator with written easements, rights-of-way, licenses or such other acceptable surface use grants, in recordable form, to evidence such existing surface uses in support of unit operations. If the Lessor fails to provide such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easements, the nature, scope and duration of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground operations on the Premises (or on lands pooled and unitized therewith).

Appears in 1 contract

Samples: Mortgage, Assignment, Security Agreement and Financing Statement (Calpine Corp)

Pooling and Unitization. Lessee mayMortgagor shall have the right, without notice and is hereby authorized, to pool or consent from Lessor, as a recurring right for drilling, development or operating purposes, pool, unitize, or otherwise combine unitize all or any part of the Premises into lands described in Exhibit A, insofar as relates to the Mortgaged Property, with adjacent lands, leaseholds and other interests, when, in the reasonable judgment of Mortgagor, it is necessary or advisable to do so in order to form a drilling and/or production unit (whether federal to facilitate the orderly development of that part of the Mortgaged Property affected thereby, or voluntary contractual unit) to comply with any other land or lands (whether held by Lessee or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee the requirements of any unit agreement, unit operating agreement Applicable Law or other documents necessary governmental order or regulation relating to such pooling the spacing of wells or unitization shall be binding on the Premises and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization proration of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted the Premises leased hereunderproduction therefrom; provided, however, txxx xny unit so formed for the production of oil shall not substantially exceed 160 acres, and any unit so formed for the production of gas shall not substantially exceed 640 acres, unless a larger area is required to conform to an Applicable Law or governmental order or regulation relating to the spacing of wells or to obtain the maximum allowable production under any Applicxxxx Law or governmental order or regulation relating to the proration of production therefrom; and further provided that notwithstanding this the Hydrocarbons produced from any unit so formed shall be allocated among the separately owned tracts or interests comprising the unit in a uniform manner consistently applied. Any unit so formed may relate to one or more zones or horizons, and a unit formed for a particular zone or horizon need not conform in area to any other provision unit relating to a different zone or provisions horizon, and a unit formed for the production of this Lease to oil need not conform in area with any unit formed for the contrary: (i) Production as to which a royalty is payable from any such xxxxx or xxxxx drilled upon production of gas. Promptly after formation of any such unit, whether located on Mortgagor shall furnish to Mortgagee and each Secured Debt Representative a true copy of the Premises pooling agreement, declaration of pooling or other lands, shall be allocated to the Premises in the proportion that the acreage of the leased land in such unit bears to the total acreage of instrument creating such unit. Such allocated portion thereof The interest in any such unit attributable to the Mortgaged Property (or any part thereof) included therein shall for all purposes become a part of the Mortgaged Property and shall be considered subject to the lien hereof in the same manner and with the same effect as having been produced from the Premises, though such unit and the royaltyinterest of Mortgagor therein were specifically described in Exhibit A. Mortgagor is further authorized to amend, payable under this Lease modify or terminate any pooling or unitization agreement or order to which Mortgagor is a party or the Mortgaged Property is subject, provided that such action does not conflict with respect to the leased land in such unit shall be payable only upon that proportion of production so allocated, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface and on Lessor’s improvements), any portion of which is chargeable to Lessor under the provisions of this Lease, then the share of such taxes to be borne by Lessor shall be in proportion to the share of the production from such unit allocated to the Premises. (iii) Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee to any unit operator) the right to use of the surface of the Premises in support of unit operationsMortgage, including all the surface uses enumerated in this Section 1 above5.1. In the event the PremisesMortgagor may enter into, or any portion thereofamend, are later removed from modify or terminate, pooling or unitization agreements not hereinabove authorized only as permitted under the unit by any contraction of the Unit Area, all such existing surface uses of the Premises in support of unit operations shall continue in force and effect, and Lessor agrees to provide Lessee or the unit operator with written easements, rights-of-way, licenses or such other acceptable surface use grants, in recordable form, to evidence such existing surface uses in support of unit operations. If the Lessor fails to provide such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easements, the nature, scope and duration of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground operations on the Premises (or on lands pooled and unitized therewith)Secured Debt Documents.

Appears in 1 contract

Samples: Mortgage, Assignment, Security Agreement and Financing Statement (Calpine Corp)

Pooling and Unitization. Lessee mayThe Mortgagor has the right, without notice and is hereby authorized, to pool or consent from Lessor, as a recurring right for drilling, development or operating purposes, pool, unitize, or otherwise combine unitize all or any part of the Premises into tract of land described in Exhibit "A", insofar as relates to the Mortgaged Property, with adjacent lands, leaseholds and other interests, when, in the reasonable judgment of the Mortgagor, it is necessary or advisable to do so in order to form a drilling unit (whether federal to facilitate the orderly development of that part of the Mortgaged Property affected thereby, or voluntary contractual unit) to comply with any other land or lands (whether held by Lessee or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee the requirements of any law or governmental order or regulation relating to the spacing of wells or proration of the production therefrom; provided, xxxxver, that the Hydrocarbons produced from any unit agreement, unit operating agreement or other documents necessary to such pooling or unitization so formed shall be binding on allocated among the Premises separately owned tracts or interests comprising the unit in proportion to the respective surface areas thereof; and Lessor’s current and future interests therein. Lessee provided further that the Mortgagor shall provide Lessor courtesy notice of any pooling or unitization of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time entitled to time included within form any such unit as Lessee without the written consent of the Mortgagee (which consent shall not be unreasonably withheld) if the effect of such formation would have if such lands constituted be to decrease the Premises leased hereunder; providedamount of Hydrocarbons which would be subject to this Mortgage. Any unit so formed may relate to one or more zones or horizons, however, that notwithstanding this and a unit formed for a particular zone or horizon need not conform in area to any other provision unit relating to a different zone or provisions horizon, and a unit formed for the production of this Lease to oil need not conform in area with any unit formed for the contrary: (i) Production as to which a royalty is payable from any such xxxxx or xxxxx drilled upon production of gas. Immediately after formation of any such unit, whether located on the Premises Mortgagor shall furnish to the Mortgagee a true copy of the pooling agreement, declaration of pooling or other landsinstrument creating such unit, in such number of counterparts as the Mortgagee may reasonably request. The interest in any such unit attributable to the Mortgaged Property (or any part thereof) included therein shall become a part of the Mortgaged Property and shall be allocated subject to the Premises Lien hereof in the proportion that same manner and with the acreage same effect as though such unit and the interest of the leased land Mortgagor therein were specifically described in such unit bears to Exhibit "A". The Mortgagor may enter into pooling or unitization agreements not hereinabove authorized only with the total acreage of such unit. Such allocated portion thereof shall for all purposes be considered as having been produced from the Premises, and the royalty, payable under this Lease with respect to the leased land in such unit shall be payable only upon that proportion of production so allocated, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface and on Lessor’s improvements), any portion of which is chargeable to Lessor under the provisions of this Lease, then the share of such taxes to be borne by Lessor shall be in proportion to the share prior written consent of the production from such unit allocated to the PremisesMortgagee. (iii) Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee to any unit operator) the right to use of the surface of the Premises in support of unit operations, including all the surface uses enumerated in Section 1 above. In the event the Premises, or any portion thereof, are later removed from the unit by any contraction of the Unit Area, all such existing surface uses of the Premises in support of unit operations shall continue in force and effect, and Lessor agrees to provide Lessee or the unit operator with written easements, rights-of-way, licenses or such other acceptable surface use grants, in recordable form, to evidence such existing surface uses in support of unit operations. If the Lessor fails to provide such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easements, the nature, scope and duration of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground operations on the Premises (or on lands pooled and unitized therewith).

Appears in 1 contract

Samples: Participation Agreement (R&b Falcon Corp)

Pooling and Unitization. Lessee mayLessee, without notice to or consent from Lessorat its option, as a recurring is hereby given the right for drilling, development or operating purposes, pool, unitize, or otherwise combine all or part of the Premises into a unit (whether federal or voluntary contractual unit) with and power at any other land or lands (whether held by Lessee or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee of any unit agreement, unit operating agreement or other documents necessary to such pooling or unitization shall be binding on the Premises time and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted the Premises leased hereunder; provideda recurring right, howevereither before or after production, that notwithstanding this as to all or any part of the land described herein and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the mineral estate covered by this lease with other provision land, lease, or provisions leases in the immediate vicinity for the production of oil and gas, or separately for the production of either, when in Lessee’s judgment it is necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to such other land, lease, or leases. Likewise, units previously formed to include formations not producing oil or gas may be reformed to exclude such non- producing formations. The forming or reforming of any unit shall be accomplished by Lessee executing and filing of record a declaration of such unitization or reformation, which declaration shall describe the unit. Any unit may include land upon which a well has theretofore been completed or upon which operations for drilling have theretofore been commenced. Production, drilling, or reworking operations or a well shut in for want of a market anywhere on a unit which includes all or a part of this Lease to lease shall be treated as if it were production, drilling, or reworking operations or a well shut in for want of a market under this lease. In lieu of the contrary: (i) Production as to which a royalty is payable royalties elsewhere herein specified, including shut-in gas royalties, Lessor shall receive on production from any such xxxxx or xxxxx drilled upon any such unit, whether located the unit so pooled royalties only on the Premises or other lands, portion of such production allocated to this lease; such allocation shall be allocated to that proportion of the Premises unit production that the total number of surface acres covered by this lease and included in the proportion that the acreage of the leased land in such unit bears to the total acreage number of surface acres in such unit. Such In addition to the foregoing, Lessee shall have the right to unitize, pool, or combine all or any part of the described lands as to one or more of the formations thereunder with other lands in the same general area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and, from time to time, with like approval, to modify, change, or terminate any such plan or agreement and, in such event, the terms, conditions, and provisions of this lease shall be deemed modified to conform to the terms, conditions, and provisions of such approved cooperative or unit plan of development or operation and, particularly, all drilling and development requirements of this lease, express or implied, shall be satisfied by compliance with the drilling and development requirements of such plan or agreement, and this lease shall not terminate or expire during the life of such plan or agreement. In the event that said above described lands or any part thereof, shall hereafter be operated under any such cooperative or unit plan of development or operation whereby the production therefrom is allocated portion thereof shall to different portions of the land covered by said plan, then the production allocated to any particular tract of land shall, for all purposes the purpose of computing the royalties to be considered paid hereunder to Lessor, be regarded as having been produced from the Premises, particular tract of land to which it is allocated and not to any other tract of land; and the royalty, payable under this Lease with respect to the leased land in such unit shall be payable only upon that proportion of production so allocated, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface and on Lessor’s improvements), any portion of which is chargeable to Lessor under the provisions of this Lease, then the share of such taxes royalty payments to be borne by made hereunder to Lessor shall be in proportion to the share of the based upon production from such unit allocated to the Premises. (iii) only as so allocated. It is hereby agreed that Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee shall formally express its consent to any cooperative or unit operator) the right to use plan of the surface of the Premises in support of unit operations, including all the surface uses enumerated in Section 1 above. In the event the Premises, development or any portion thereof, are later removed from the unit operation adopted by Lessee and approved by any contraction of governmental agency by executing the Unit Area, all such existing surface uses of the Premises in support of unit operations shall continue in force and effect, and Lessor agrees to provide Lessee or the unit operator with written easements, rights-of-way, licenses or such other acceptable surface use grants, in recordable form, to evidence such existing surface uses in support of unit operations. If the Lessor fails to provide such written easements within thirty (30) days same upon request of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easements, the nature, scope and duration of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground operations on the Premises (or on lands pooled and unitized therewith).

Appears in 1 contract

Samples: Oil and Gas Lease

Pooling and Unitization. Lessee mayThe Lessee, without notice subject to or consent from the approval of the Lessor, as a recurring right for drilling, development or operating purposes, pool, unitize, or otherwise combine all or part of the Premises into a unit (whether federal or voluntary contractual unit) with any other land or lands (whether held by Lessee or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee of any unit agreement, unit operating agreement or other documents necessary to such pooling or unitization shall be binding on the Premises and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted the Premises leased hereunder; provided, however, that notwithstanding this or any other provision or provisions of this Lease to the contrary: (i) Production as to which a royalty is payable from any such xxxxx or xxxxx drilled upon any such unit, whether located on the Premises or other lands, shall be allocated to the Premises in the proportion that the acreage of the leased land in such unit bears to the total acreage of such unit. Such allocated portion thereof shall for all purposes be considered as having been produced from the Premises, and the royalty, payable under this Lease with respect to the leased land in such unit shall be payable only upon that proportion of production so allocated, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface and on Lessor’s improvements), any portion of which is chargeable to Lessor under the provisions of this Lease, then the share of such taxes to be borne by Lessor shall be in proportion to the share of the production from such unit allocated to the Premises. (iii) Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee to any unit operator) given the right to use of the surface of the Premises in support of unit operations, including all the surface uses enumerated in Section 1 above. In the event pool the Premises, or any portion thereof, are later removed or any zone or formation underlying the Premises or any portion thereof, with any other lands or any zone or formation underlying the same, but all of the lands so pooled shall not exceed one spacing unit as established by the Minister under the Oil, Gas, and Salt Resources Act. In the event of such pooling, the Lessor shall, in lieu of the royalties elsewhere herein specified, receive on production of oil or gas from the said spacing unit by any contraction only such portion of the Unit Area, all such existing royalties stipulated herein as the surface uses area of the Premises placed in support the spacing unit bears to the total surface area of unit operations shall continue all lands in force and effectsuch spacing unit. The Lessee, and Lessor agrees subject to provide Lessee the approval of the Lessor, may include the Premises, or the unit operator any part or parts thereof, with written easements, rights-of-way, licenses or such other acceptable surface use grants, lands in recordable form, to evidence such existing surface uses in support a unitization agreement. The plan of unit operations. If , the manner of allocating production to each tract in the unit area, and the contents of any such unitization agreement shall also be subject to the approval of the Lessor fails to provide and when so approved shall be binding upon the Lessor. Upon any such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easementsunitization agreement, the nature, scope royalties elsewhere herein specified shall be paid on the basis of the production allocated to the Premises under the unitization agreement and duration not upon the basis of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground actual production from any well(s). All operations on or production of oil or gas from a spacing unit under a pooling agreement, or a unit area under a unitization agreement, shall be deemed to be operations on or production from that portion of the Premises (within the spacing unit or on lands pooled and unitized therewith).unit area, as the case may be, in respect of the Lessee's obligations, expressed or implied under this lease. Lease Number: «DocRefNum»-OGL

Appears in 1 contract

Samples: Lease Agreement

Pooling and Unitization. Lessee mayThe Borrower has the right, without notice and is hereby authorized, to pool or consent from Lessor, as a recurring right for drilling, development or operating purposes, pool, unitize, or otherwise combine unitize all or any part of any tract of land described in Exhibit A, insofar as relates to the Mortgaged Properties, with adjacent lands, leaseholds and other interests, when, in the reasonable judgment of the Borrower, it is necessary or advisable to do so in order to form a drilling unit to facilitate the orderly development of that part of the Premises into a unit (whether federal Mortgaged Properties affected thereby, or voluntary contractual unit) to comply with any other land or lands (whether held by Lessee or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee the requirements of any unit agreement, unit operating agreement law or other documents necessary governmental order or regulation relating to such pooling the spacing of wells or unitization shall be binding on the Premises and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization proration of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted the Premises leased hereunderproduction therefrom; provided, however, txxx xhe Hydrocarbons produced from any unit so formed shall be allocated among the separately owned tracts or interests comprising the unit in proportion to the respective surface areas thereof; and provided further that notwithstanding the Borrower is not be entitled to form any such unit without the written consent of the Agent (which consent shall not be unreasonably withheld) if the effect of such formation would be to decrease the amount of Hydrocarbons which would be subject to this Mortgage. Any unit so formed may relate to one or more zones or horizons, and a unit formed for a particular zone or horizon need not conform in area to any other provision unit relating to a different zone or provisions horizon, and a unit formed for the production of this Lease to oil need not conform in area with any unit formed for the contrary: (i) Production as to which a royalty is payable from any such xxxxx or xxxxx drilled upon production of gas. Immediately after formation of any such unit, whether located on the Premises Borrower shall furnish to the Agent a true copy of the pooling agreement, declaration of pooling or other landsinstrument creating such unit, in such number of counterparts as the Agent may reasonably request. The interest in any such unit attributable to the Mortgaged Properties (or any part thereof) included therein shall become a part of the Mortgaged Properties and shall be allocated subject to the Premises Lien hereof in the proportion that same manner and with the acreage same effect as though such unit and the interest of the leased land Borrower therein were specifically described in such unit bears to Exhibit A. The Borrower may enter into pooling or unitization agreements not hereinabove authorized only with the total acreage of such unit. Such allocated portion thereof shall for all purposes be considered as having been produced from the Premises, and the royalty, payable under this Lease with respect to the leased land in such unit shall be payable only upon that proportion of production so allocated, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface and on Lessor’s improvements), any portion of which is chargeable to Lessor under the provisions of this Lease, then the share of such taxes to be borne by Lessor shall be in proportion to the share prior written consent of the production from such unit allocated to the PremisesAgent. (iii) Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee to any unit operator) the right to use of the surface of the Premises in support of unit operations, including all the surface uses enumerated in Section 1 above. In the event the Premises, or any portion thereof, are later removed from the unit by any contraction of the Unit Area, all such existing surface uses of the Premises in support of unit operations shall continue in force and effect, and Lessor agrees to provide Lessee or the unit operator with written easements, rights-of-way, licenses or such other acceptable surface use grants, in recordable form, to evidence such existing surface uses in support of unit operations. If the Lessor fails to provide such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easements, the nature, scope and duration of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground operations on the Premises (or on lands pooled and unitized therewith).

Appears in 1 contract

Samples: Deed of Trust (GMX Resources Inc)

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Pooling and Unitization. Lessee mayMortgagor shall have the right, without notice and is hereby authorized, to pool or consent from Lessor, as a recurring right for drilling, development or operating purposes, pool, unitize, or otherwise combine unitize all or any part of the Premises into lands described in Exhibit A, insofar as relates to the Mortgaged Property, with adjacent lands, leaseholds and other interests, when, in the reasonable judgment of Mortgagor, it is necessary or advisable to do so in order to form a drilling and/or production unit (whether federal to facilitate the orderly development of that part of the Mortgaged Property affected thereby, or voluntary contractual unit) to comply with any other land or lands (whether held by Lessee or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee the requirements of any unit agreement, unit operating agreement Applicable Law or other documents necessary governmental order or regulation relating to such pooling the spacing of wells or unitization shall be binding on the Premises and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization proration of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted the Premises leased hereunderproduction therefrom; provided, however, txxx xny unit so formed for the production of oil shall not substantially exceed 160 acres, and any unit so formed for the production of gas shall not substantially exceed 640 acres, unless a larger area is required to conform to an Applicable Law or governmental order or regulation relating to the spacing of wells or to obtain the maximum allowable production under any Applicxxxx Law or governmental order or regulation relating to the proration of production therefrom; and further provided that notwithstanding this the Hydrocarbons produced from any unit so formed shall be allocated among the separately owned tracts or interests comprising the unit in a uniform manner consistently applied. Any unit so formed may relate to one or more zones or horizons, and a unit formed for a particular zone or horizon need not conform in area to any other provision unit relating to a different zone or provisions horizon, and a unit formed for the production of this Lease to oil need not conform in area with any unit formed for the contrary: (i) Production as to which a royalty is payable from any such xxxxx or xxxxx drilled upon production of gas. Promptly after formation of any such unit, whether located on Mortgagor shall furnish to Beneficiary and each Secured Debt Representative a true copy of the Premises pooling agreement, declaration of pooling or other lands, shall be allocated to the Premises in the proportion that the acreage of the leased land in such unit bears to the total acreage of instrument creating such unit. Such allocated portion thereof The interest in any such unit attributable to the Mortgaged Property (or any part thereof) included therein shall for all purposes become a part of the Mortgaged Property and shall be considered subject to the lien hereof in the same manner and with the same effect as having been produced from the Premises, though such unit and the royaltyinterest of Mortgagor therein were specifically described in Exhibit A. Mortgagor is further authorized to amend, payable under this Lease modify or terminate any pooling or unitization agreement or order to which Mortgagor is a party or the Mortgaged Property is subject, provided that such action does not conflict with respect to the leased land in such unit shall be payable only upon that proportion of production so allocated, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface and on Lessor’s improvements), any portion of which is chargeable to Lessor under the provisions of this Lease, then the share of such taxes to be borne by Lessor shall be in proportion to the share of the production from such unit allocated to the Premises. (iii) Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee to any unit operator) the right to use of the surface of the Premises in support of unit operationsMortgage, including all the surface uses enumerated in this Section 1 above6.1. In the event the PremisesMortgagor may enter into, or any portion thereofamend, are later removed from modify or terminate, pooling or unitization agreements not hereinabove authorized only as permitted under the unit by any contraction of the Unit Area, all such existing surface uses of the Premises in support of unit operations shall continue in force and effect, and Lessor agrees to provide Lessee or the unit operator with written easements, rights-of-way, licenses or such other acceptable surface use grants, in recordable form, to evidence such existing surface uses in support of unit operations. If the Lessor fails to provide such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easements, the nature, scope and duration of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground operations on the Premises (or on lands pooled and unitized therewith)Secured Debt Documents.

Appears in 1 contract

Samples: Mortgage, Deed of Trust, Assignment, Security Agreement, Financing Statement and Fixture Filing (Calpine Corp)

Pooling and Unitization. Lessee mayLessee, without notice to or consent from Lessorat its option, as a recurring is hereby given the right for drilling, development or operating purposes, pool, unitize, or otherwise combine all or part of the Premises into a unit (whether federal or voluntary contractual unit) with and power at any other land or lands (whether held by Lessee or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee of any unit agreement, unit operating agreement or other documents necessary to such pooling or unitization shall be binding on the Premises time and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted the Premises leased hereunder; provideda recurring right, howevereither before or after production, that notwithstanding this as to all or any part of the land described herein and as to any one or more of the formations hereunder, to pool or unitize the leasehold estate and the mineral estate covered by this lease with other provision land, lease, or provisions leases in the immediate vicinity for the production of oil and gas, or separately for the production of either, when in Lessee’s judgment it is necessary or advisable to do so, and irrespective of whether authority similar to this exists with respect to such other land, lease, or leases. Likewise, units previously formed to include formations not producing oil or gas may be reformed to exclude such non- producing formations. The forming or reforming of any unit shall be accomplished by Xxxxxx executing and filing of record a declaration of such unitization or reformation, which declaration shall describe the unit. Any unit may include land upon which a well has theretofore been completed or upon which operations for drilling have theretofore been commenced. Production, drilling, or reworking operations or a well shut in for want of a market anywhere on a unit which includes all or a part of this Lease to lease shall be treated as if it were production, drilling, or reworking operations or a well shut in for want of a market under this lease. In lieu of the contrary: (i) Production as to which a royalty is payable royalties elsewhere herein specified, including shut-in gas royalties, Lessor shall receive on production from any such xxxxx or xxxxx drilled upon any such unit, whether located the unit so pooled royalties only on the Premises or other lands, portion of such production allocated to this lease; such allocation shall be allocated to that proportion of the Premises unit production that the total number of surface acres covered by this lease and included in the proportion that the acreage of the leased land in such unit bears to the total acreage number of surface acres in such unit. Such In addition to the foregoing, Lessee shall have the right to unitize, pool, or combine all or any part of the described lands as to one or more of the formations thereunder with other lands in the same general area by entering into a cooperative or unit plan of development or operation approved by any governmental authority and, from time to time, with like approval, to modify, change, or terminate any such plan or agreement and, in such event, the terms, conditions, and provisions of this lease shall be deemed modified to conform to the terms, conditions, and provisions of such approved cooperative or unit plan of development or operation and, particularly, all drilling and development requirements of this lease, express or implied, shall be satisfied by compliance with the drilling and development requirements of such plan or agreement, and this lease shall not terminate or expire during the life of such plan or agreement. In the event that said above described lands or any part thereof, shall hereafter be operated under any such cooperative or unit plan of development or operation whereby the production therefrom is allocated portion thereof shall to different portions of the land covered by said plan, then the production allocated to any particular tract of land shall, for all purposes the purpose of computing the royalties to be considered paid hereunder to Lessor, be regarded as having been produced from the Premises, particular tract of land to which it is allocated and not to any other tract of land; and the royalty, payable under this Lease with respect to the leased land in such unit shall be payable only upon that proportion of production so allocated, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface and on Lessor’s improvements), any portion of which is chargeable to Lessor under the provisions of this Lease, then the share of such taxes royalty payments to be borne by made hereunder to Lessor shall be in proportion to the share of the based upon production from such unit allocated to the Premises. (iii) only as so allocated. It is hereby agreed that Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee shall formally express its consent to any cooperative or unit operator) the right to use plan of the surface of the Premises in support of unit operations, including all the surface uses enumerated in Section 1 above. In the event the Premises, development or any portion thereof, are later removed from the unit operation adopted by Xxxxxx and approved by any contraction of the Unit Area, all such existing surface uses of the Premises in support of unit operations shall continue in force and effect, and Lessor agrees to provide Lessee or the unit operator with written easements, rights-of-way, licenses or such other acceptable surface use grants, in recordable form, to evidence such existing surface uses in support of unit operations. If the Lessor fails to provide such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record governmental agency by executing the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easements, the nature, scope and duration upon request of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground operations on the Premises (or on lands pooled and unitized therewith)Xxxxxx.

Appears in 1 contract

Samples: Oil and Gas Lease

Pooling and Unitization. Lessee mayThe Mortgagor shall have the right, without notice and is hereby authorized, to pool or consent from Lessor, as a recurring right for drilling, development or operating purposes, pool, unitize, or otherwise combine unitize all or any part of any tract of land described in Exhibit A, insofar as relates to the Mortgaged Property, with adjacent lands, leaseholds and other interests, when, in the reasonable judgment of the Mortgagor, it is necessary or advisable to do so in order to form a drilling unit to facilitate the orderly development of that part of the Premises into a unit (whether federal Mortgaged Property affected thereby, or voluntary contractual unit) to comply with any other land or lands (whether held by Lessee or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee the requirements of any unit agreement, unit operating agreement law or other documents necessary governmental order or regulation relating to such pooling the spacing of xxxxx or unitization shall be binding on the Premises and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization proration of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted the Premises leased hereunderproduction therefrom; provided, however, that notwithstanding this any unit so formed for the production of oil shall not substantially exceed 160 acres, and any unit so formed for the production of gas shall not substantially exceed 640 acres, unless a larger area is required to conform to an applicable law or governmental order or regulation relating to the spacing of xxxxx or to obtain the maximum allowable production under any applicable law or governmental order or regulation relating to the proration of production therefrom; and further provided that the Hydrocarbons produced from any unit so formed shall be allocated among the separately owned tracts or interests comprising the unit in a uniform manner consistently applied. Any unit so formed may relate to one or more zones or horizons, and a unit formed for a particular zone or horizon need not conform in area to any other provision unit relating to a different zone or provisions horizon, and a unit formed for the production of this Lease to oil need not conform in area with any unit formed for the contrary: (i) Production as to which a royalty is payable from any such xxxxx or xxxxx drilled upon production of gas. Immediately after formation of any such unit, whether located on the Premises Mortgagor shall furnish to the Administrative Agent a true copy of the pooling agreement, declaration of pooling or other landsinstrument creating such unit, in such number of counterparts as the Administrative Agent may reasonably request. The interest in any such unit attributable to the Mortgaged Property (or any part thereof) included therein shall become a part of the Mortgaged Property and shall be allocated subject to the Premises lien hereof in the proportion that same manner and with the acreage same effect as though such unit and the interest of the leased land Mortgagor therein were specifically described in such unit bears to Exhibit A. The Mortgagor may enter into pooling or unitization agreements not hereinabove authorized only with the total acreage of such unit. Such allocated portion thereof shall for all purposes be considered as having been produced from the Premises, and the royalty, payable under this Lease with respect to the leased land in such unit shall be payable only upon that proportion of production so allocated, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface and on Lessor’s improvements), any portion of which is chargeable to Lessor under the provisions of this Lease, then the share of such taxes to be borne by Lessor shall be in proportion to the share prior written consent of the production from such unit allocated to the PremisesAdministrative Agent. (iii) Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee to any unit operator) the right to use of the surface of the Premises in support of unit operations, including all the surface uses enumerated in Section 1 above. In the event the Premises, or any portion thereof, are later removed from the unit by any contraction of the Unit Area, all such existing surface uses of the Premises in support of unit operations shall continue in force and effect, and Lessor agrees to provide Lessee or the unit operator with written easements, rights-of-way, licenses or such other acceptable surface use grants, in recordable form, to evidence such existing surface uses in support of unit operations. If the Lessor fails to provide such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easements, the nature, scope and duration of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground operations on the Premises (or on lands pooled and unitized therewith).

Appears in 1 contract

Samples: Mortgage (Sonoran Energy Inc)

Pooling and Unitization. Lessee mayMortgagor shall have the right, without notice and is hereby authorized, to pool or consent from Lessor, as a recurring right for drilling, development or operating purposes, pool, unitize, or otherwise combine unitize all or any part of the Premises into Leases insofar as related to the Mortgaged Property, with adjacent lands, leaseholds and other interests, when, in the reasonable judgment of Mortgagor, it is necessary or advisable to do so in order to form a drilling unit to facilitate the orderly development of that part of the Mortgaged Property affected thereby, or to comply with the requirements of any law or governmental order or regulation relating to the spacing of wells or proration of the production therefrom; and further provided xxxx the Hydrocarbons produced from any unit so formed shall be allocated among the separately owned tracts or interests comprising the unit in proportion to the respective surface areas or reservoir volumes thereof or in such proportion as is prescribed by applicable law. Any unit so formed may relate to one or more zones or horizons, and a unit (whether federal formed for a particular zone or voluntary contractual unit) horizon need not conform in area to any other unit relating to a different zone or horizon, and a unit formed for the production of oil need not conform in area with any other land or lands (whether held by Lessee or others)unit formed for the production of gas. Upon the written request of Mortgagees, whether or not adjacent or contiguous, which Lessee desires as to develop or operate (singly or in combination with others) as a unit. The execution by Lessee of any unit agreement, unit operating agreement or other documents necessary to all such pooling or unitization shall be binding on the Premises and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premisesunits theretofore formed, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted the Premises leased hereunder; provided, however, that notwithstanding this or any other provision or provisions thereafter immediately after formation of this Lease to the contrary: (i) Production as to which a royalty is payable from any such xxxxx or xxxxx drilled upon any such unit, whether located on Mortgagor shall furnish to Mortgagees a true copy of the Premises pooling agreements, declarations of pooling or other landsinstruments creating such units, in such number of counterparts as Mortgagees may reasonably request. The interest in any such unit attributable to the Mortgaged Property (or any part thereof) included therein shall become a part of the Mortgaged Property and shall be allocated subject to the Premises lien hereof in the proportion that same manner and with the acreage of the leased land in same effect as though such unit bears to the total acreage of such unit. Such allocated portion thereof shall for all purposes be considered as having been produced from the Premises, and the royalty, payable under this Lease with respect to the leased land in such unit shall be payable only upon that proportion interest of production so allocated, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface and on Lessor’s improvements), any portion of which is chargeable to Lessor under the provisions of this Lease, then the share of such taxes to be borne by Lessor shall be in proportion to the share of the production from such unit allocated to the Premises. (iii) Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee to any unit operator) the right to use of the surface of the Premises in support of unit operations, including all the surface uses enumerated in Section 1 above. In the event the Premises, or any portion thereof, are later removed from the unit by any contraction of the Unit Area, all such existing surface uses of the Premises in support of unit operations shall continue in force and effect, and Lessor agrees to provide Lessee or the unit operator with written easements, rights-of-way, licenses or such other acceptable surface use grants, in recordable form, to evidence such existing surface uses in support of unit operations. If the Lessor fails to provide such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easements, the nature, scope and duration of such easements as Mortgagor therein were specifically described in Exhibit A. Mortgagor may enter into pooling or unitization agreements not hereinabove authorized only with the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground operations on the Premises (or on lands pooled and unitized therewith)prior written consent of Mortgagees.

Appears in 1 contract

Samples: Mortgage, Deed of Trust, Assignment of Production, Security Agreement and Financing Statement (Texoil Inc /Nv/)

Pooling and Unitization. Lessee mayThe Lessee, without notice subject to or consent from the approval of the Lessor, as a recurring right for drilling, development or operating purposes, pool, unitize, or otherwise combine all or part of the Premises into a unit (whether federal or voluntary contractual unit) with any other land or lands (whether held by Lessee or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee of any unit agreement, unit operating agreement or other documents necessary to such pooling or unitization shall be binding on the Premises and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted the Premises leased hereunder; provided, however, that notwithstanding this or any other provision or provisions of this Lease to the contrary: (i) Production as to which a royalty is payable from any such xxxxx or xxxxx drilled upon any such unit, whether located on the Premises or other lands, shall be allocated to the Premises in the proportion that the acreage of the leased land in such unit bears to the total acreage of such unit. Such allocated portion thereof shall for all purposes be considered as having been produced from the Premises, and the royalty, payable under this Lease with respect to the leased land in such unit shall be payable only upon that proportion of production so allocated, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface and on Lessor’s improvements), any portion of which is chargeable to Lessor under the provisions of this Lease, then the share of such taxes to be borne by Lessor shall be in proportion to the share of the production from such unit allocated to the Premises. (iii) Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee to any unit operator) given the right to use of the surface of the Premises in support of unit operations, including all the surface uses enumerated in Section 1 above. In the event pool the Premises, or any portion thereof, are later removed or any zone or formation underlying the Premises or any portion thereof, with any other lands or any zone or formation underlying the same, but all of the lands so pooled shall not exceed one spacing unit as established by the Minister under the Oil, Gas, and Salt Resources Act. In the event of such pooling, the Lessor shall, in lieu of the royalties elsewhere herein specified, receive on production of oil from the said spacing unit by any contraction only such portion of the Unit Area, all such existing royalties stipulated herein as the surface uses area of the Premises placed in support the spacing unit bears to the total surface area of unit operations shall continue all lands in force and effectsuch spacing unit. The Lessee, and Lessor agrees subject to provide Lessee the approval of the Lessor, may include the Premises, or the unit operator any part or parts thereof, with written easements, rights-of-way, licenses or such other acceptable surface use grants, lands in recordable form, to evidence such existing surface uses in support a unitization agreement. The plan of unit operations. If , the manner of allocating production to each tract in the unit area, and the contents of any such unitization agreement shall also be subject to the approval of the Lessor fails to provide and when so approved shall be binding upon the Lessor. Upon any such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easementsunitization agreement, the nature, scope royalties elsewhere herein specified shall be paid on the basis of the production allocated to the Premises under the unitization agreement and duration not upon the basis of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground actual production from any well(s). All operations on or production of oil from a spacing unit under a pooling agreement, or a unit area under a unitization agreement, shall be deemed to be operations on or production from that portion of the Premises (within the spacing unit or on lands pooled and unitized therewith)unit area, as the case may be, in respect of the Lessee's obligations, expressed or implied under this lease.

Appears in 1 contract

Samples: Lease Agreement

Pooling and Unitization. Lessee mayThe Lessee, without notice subject to or consent from the approval of the Lessor, as a recurring right for drilling, development or operating purposes, pool, unitize, or otherwise combine all or part of the Premises into a unit (whether federal or voluntary contractual unit) with any other land or lands (whether held by Lessee or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee of any unit agreement, unit operating agreement or other documents necessary to such pooling or unitization shall be binding on the Premises and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted the Premises leased hereunder; provided, however, that notwithstanding this or any other provision or provisions of this Lease to the contrary: (i) Production as to which a royalty is payable from any such xxxxx or xxxxx drilled upon any such unit, whether located on the Premises or other lands, shall be allocated to the Premises in the proportion that the acreage of the leased land in such unit bears to the total acreage of such unit. Such allocated portion thereof shall for all purposes be considered as having been produced from the Premises, and the royalty, payable under this Lease with respect to the leased land in such unit shall be payable only upon that proportion of production so allocated, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface and on Lessor’s improvements), any portion of which is chargeable to Lessor under the provisions of this Lease, then the share of such taxes to be borne by Lessor shall be in proportion to the share of the production from such unit allocated to the Premises. (iii) Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee to any unit operator) given the right to use of the surface of the Premises in support of unit operations, including all the surface uses enumerated in Section 1 above. In the event pool the Premises, or any portion thereof, are later removed or any zone or formation underlying the Premises or any portion thereof, with any other lands or any zone or formation underlying the same, but all of the lands so pooled shall not exceed one spacing unit as established by the Minister under the Oil, Gas, and Salt Resources Act. In the event of such pooling, the Lessor shall, in lieu of the royalties elsewhere herein specified, receive on production of gas from the said spacing unit by any contraction only such portion of the Unit Area, all such existing royalties stipulated herein as the surface uses area of the Premises placed in support the spacing unit bears to the total surface area of unit operations shall continue all lands in force and effectsuch spacing unit. The Lessee, and Lessor agrees subject to provide Lessee the approval of the Lessor, may include the Premises, or the unit operator any part or parts thereof, with written easements, rights-of-way, licenses or such other acceptable surface use grants, lands in recordable form, to evidence such existing surface uses in support a unitization agreement. The plan of unit operations. If , the manner of allocating production to each tract in the unit area, and the contents of any such unitization agreement shall also be subject to the approval of the Lessor fails to provide and when so approved shall be binding upon the Lessor. Upon any such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easementsunitization agreement, the nature, scope royalties elsewhere herein specified shall be paid on the basis of the production allocated to the Premises under the unitization agreement and duration not upon the basis of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground actual production from any well(s). All operations on or production of gas from a spacing unit under a pooling agreement, or a unit area under a unitization agreement, shall be deemed to be operations on or production from that portion of the Premises (within the Lease Number: «DocRefNum»-GL spacing unit or on lands pooled and unitized therewith)unit area, as the case may be, in respect of the Lessee's obligations, expressed or implied under this lease.

Appears in 1 contract

Samples: Lease Agreement

Pooling and Unitization. (a) The Lessee may, without notice to or consent from Lessor, as a recurring is hereby given the right for drilling, development or operating purposes, pool, unitize, or otherwise combine all or part of the Premises into a unit (whether federal or voluntary contractual unit) with and power at any other land or lands (whether held by Lessee or others), whether or not adjacent or contiguous, which Lessee desires to develop or operate (singly or in combination with others) as a unit. The execution by Lessee of any unit agreement, unit operating agreement or other documents necessary to such pooling or unitization shall be binding on the Premises time and Lessor’s current and future interests therein. Lessee shall provide Lessor courtesy notice of any pooling or unitization of the Premises. Any well (whether or not Lessee’s well) commenced, drilled, drilling and/or producing or being capable of producing in any part of such unit shall for all purposes of this Lease be deemed a well commenced, drilled, drilling and/or producing on the Premises, and the Lessee shall have the same rights and obligations with respect thereto and the drilling and producing operations upon the lands from time to time included within any such unit as Lessee would have if such lands constituted to pool or combine the Premises leased hereunder; provided, however, that notwithstanding this or any other provision or provisions of this Lease to the contrary: (i) Production as to which a royalty is payable from any such xxxxx or xxxxx drilled upon any such unit, whether located on the Premises or other said lands, shall be allocated to the Premises in the proportion that the acreage of the leased land in such unit bears to the total acreage of such unit. Such allocated portion thereof shall for all purposes be considered as having been produced from the Premises, and the royalty, payable under this Lease with respect to the leased land in such unit shall be payable only upon that proportion of production so allocated, and (ii) If taxes of any kind are levied or assessed (other than taxes on the surface and on Lessor’s improvements), any portion of which is chargeable to Lessor under the provisions of this Lease, then the share of such taxes to be borne by Lessor shall be in proportion to the share of the production from such unit allocated to the Premises. (iii) Lessor hereby grants Lessee (or the consents to the assignment of such rights from Lessee to any unit operator) the right to use of the surface of the Premises in support of unit operations, including all the surface uses enumerated in Section 1 above. In the event the Premises, or any portion thereof, are later removed or any zone or formation underlying the said lands or any portion thereof, with any other lands or any zone or formation underlying the same, but so that the lands so pooled and combined (herein referred to as a "unit") shall not exceed one spacing unit as hereinbefore defined. In the event of such pooling or combining, the Lessor shall, in lieu of the royalties elsewhere herein specified, receive on production of the leased substances from the unit by any contraction said unit, only such portion of the Unit Area, all such existing royalties stipulated herein as the surface uses area of the Premises said lands placed in support the unit bears to the total surface area of unit lands in such unit. (b) The Lessee from time to time and at any time, shall have the right to include the said lands or any part or parts thereof in a Unit Operation Agreement for the unitized development and/or operation thereof with other lands, if such becomes necessary or desirable in the opinion of the Lessee. The basis and manner of any unitization, the manner of allocating unitized production among the several tracts of unitized lands, and the contents of any such Unit Operation Agreement shall be in the sole discretion and determination of the Lessee, exercised bona fide, and when so determined shall be binding upon the Lessor. Upon any such unitization, the royalties elsewhere herein specified shall be paid on the basis of the production allocated to the said lands under the plan of unitization and not upon the basis of actual production. (c) Drilling operations on or production of leased substances from, or the presence of a shut-in or suspended well on, any land so pooled or unitized as aforesaid, shall continue have the same effect in continuing this Lease in force and effecteffect during the term hereby granted or any renewal or extension thereof, and Lessor agrees as to provide Lessee all the pooled lands, as if such operation or production were upon or from the unit operator with written easementssaid lands or some portion thereof, rightsor as if said shut-of-way, licenses in or such other acceptable surface use grants, in recordable form, to evidence such existing surface uses in support of unit operations. If the Lessor fails to provide such written easements within thirty (30) days of Lessee’s written request, Lessor authorizes Lessee to unilaterally prepare and execute such easements and record the same in the applicable county’s real property records. Should Lessee elect to unilaterally execute such easements, the nature, scope and duration of such easements as described in the executed document shall accurately and reasonably reflect the existing uses in relation to Lessee’s surface and underground operations suspended well were located on the Premises (or on lands pooled and unitized therewith)said lands.

Appears in 1 contract

Samples: Freehold Lease and Grant (Pacific Rodera Ventures Inc)

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