Common use of UNITIZATION Clause in Contracts

UNITIZATION. (a) The lessee may unite with others, jointly or separately, in collectively adopting and operating under a cooperative or unit agreement for the exploration, development, or operation of the pool, field, or like area or part of the pool, field, or like area that includes or underlies the leased area or any part of the leased area whenever the state determines and certifies that the cooperative or unit agreement is in the public interest. (b) The lessee agrees, within six months after demand by the state, to subscribe to a reasonable cooperative or unit agreement that will adequately protect all parties in interest, including the state. The state reserves the right to prescribe such an agreement. (c) With the consent of the lessee, and if the leased area is committed to a unit agreement approved by the state, the state may establish, alter, change, or revoke drilling, producing, and royalty requirements of this lease as the state determines necessary or proper to secure the proper protection of the public interest. (d) Except as otherwise provided in this subparagraph, where only a portion of the leased area is committed to a unit agreement approved or prescribed by the state, that commitment constitutes a severance of this lease as to the unitized and nonunitized portions of the leased area. The portion of the leased area not committed to the unit will be treated as a separate and distinct lease having the same effective date and term as this lease and may be maintained only in accordance with the terms and conditions of this lease, statutes, and regulations. Any portion of the leased area not committed to the unit agreement will not be affected by the unitization or pooling of any other portion of the leased area, by operations in the unit, or by suspension approved or ordered for the unit. If any portion of this lease is included in a participating area formed under a unit agreement, the entire leased area will remain committed to the unit and this lease will not be severed.

UNITIZATION. (a) The lessee may unite with others, jointly or separately, in collectively adopting and operating under a cooperative or unit agreement for the exploration, development, or operation of the pool, field, or like area or part of the pool, field, or like area that includes or underlies the leased area or any part of the leased area whenever the state determines and certifies that the cooperative or unit agreement is in the public interest. (b) The lessee agrees, within six months after demand by the state, to subscribe to a reasonable cooperative or unit agreement that will adequately protect all parties in interest, including the state. The state reserves the right to prescribe such an agreement. (c) With the consent of the lessee, and if the leased area is committed to a unit agreement approved by the state, the state may establish, alter, change, or revoke drilling, producing, and royalty requirements of this lease as the state determines necessary or proper to secure the proper protection of the public interest. (d) Except as otherwise provided in this subparagraph, where only a portion of the leased area is committed to a unit agreement approved or prescribed by the state, that commitment constitutes a severance of this lease as to the unitized and nonunitized portions of the leased area. The portion of the leased area not committed to the unit will be treated as a separate and distinct lease having the same effective date and term as this lease and may be maintained only in accordance with the terms and conditions of this lease, statutes, and regulations. Any portion of the leased area not committed to the unit agreement will not be affected by the unitization or pooling of any other portion of the leased area, by operations in the unit, or by suspension approved or ordered for the unit. If the leased area has a well certified, under 11 AAC 83.361, as capable of production in paying quantities as defined in 11 AAC 83.395(4) on it before commitment to a unit agreement, this lease will not be severed. If any portion of this lease is included in a participating area formed under a unit agreement, the entire leased area will remain committed to the unit and this lease will not be severed.

UNITIZATION. (a) The lessee may unite with others, jointly or separately, in collectively adopting and operating under a cooperative or unit agreement for the exploration, development, or operation of the pool, field, or like area or part of the pool, field, or like area that includes or underlies the leased area or any part of the leased area whenever the state determines and certifies that the cooperative or unit agreement is in the public interest. (b) The lessee agrees, within six months after demand by the state, to subscribe to a reasonable cooperative or unit agreement that will adequately protect all parties in interest, including the state. The state reserves the right to prescribe such an agreement. (c) With the consent of the lessee, and if the leased area is committed to a unit agreement approved by the state, the state may establish, alter, change, or revoke drilling, producing, and royalty requirements of this lease as the state determines necessary or proper to secure the proper protection of the public interest. (d) Except as otherwise provided in this subparagraph, where only a portion of the leased area is committed to a unit agreement approved or prescribed by the state, that commitment constitutes a severance of this lease as to the unitized and nonunitized portions of the leased area. The portion of the leased area not committed to the t he unit will be treated as a separate and distinct lease having the same effective date and term as this lease and may be maintained only in accordance with the terms and conditions of this lease, statutes, and regulations. Any portion of the leased area not committed to the unit agreement will not be affected by the unitization or pooling of any other portion of the leased area, by operations in the unit, or by suspension approved or ordered for the unit. If the leased area has a well certified, under 11 AAC 83.361, as capable of production in paying quantities as defined in 11 AAC 83.395(4) on it before commitment to a unit agreement, this lease will not be severed. If any portion of this lease is included in a participating area formed under a unit agreement, the entire leased area will remain committed to the unit and this lease will not be severed.

UNITIZATION. (a) A. The lessee Lessee may unite with others, jointly or separately, in collectively adopting and operating under a cooperative or unit agreement for the exploration, development, development or operation of the pool, field, pool or field or like area or part of the pool, field, field or like area that includes or underlies the leased area or any part of the leased area whenever the state State of Alaska determines and certifies that the cooperative or unit agreement is in the public interest. (b) B. The lessee Lessee agrees, within six months SIX (6) MONTHS after demand by the stateUniversity, to subscribe to such a reasonable cooperative or unit agreement, which agreement that will shall be reasonable and shall adequately protect all parties in interest, interest including the state. The state reserves the right to prescribe such an agreementUniversity. (c) C. With the consent of the lesseeUniversity and Lessee, and if the leased area Leased Area is committed to a unit agreement approved by the stateState of Alaska, the state State of Alaska may establish, alter, change, or revoke drilling, producing, Drilling and royalty producing requirements of this lease as the state determines necessary or proper to secure the proper protection of the public interest.Lease as (d) D. Except as otherwise provided in this subparagraphParagraph 15.D, where only a portion of the leased area Leased Area is committed to a unit agreement approved or prescribed by the stateState of Alaska, that commitment constitutes a severance of this lease Lease as to the unitized and nonunitized non- unitized portions of the leased areaLeased Area. The portion of the leased area Leased Area not committed to the unit will be treated as a separate and distinct lease having the same effective date and term as this lease Lease and may be maintained only in accordance with the terms and conditions of this lease, statutes, and regulationsLease. Any portion of the leased area Leased Area not committed to the unit agreement will not be affected by the unitization or pooling of any other portion of the leased area, Leased Area by operations in the unit, or by suspension approved or ordered for the unit. If the Leased Area has a well certified by the University as capable of production in Paying Quantities on it before commitment to a unit agreement, this Lease will not be severed. If any portion of this lease Lease is included in a participating area formed under a unit agreement, the entire leased area Leased Area will remain committed to the unit and this lease Lease will not be severed.