Common use of UNITIZATION Clause in Contracts

UNITIZATION. (a) Subject to the conditions of Subsection (g) below, Lessee shall have the right, at its sole option, from time to time, either before or after production, to unitize, pool or combine all or any part of the Lands with other land or lands or lease or leases (whether held by Lessee or others and whether or not the surface of such lands may be used for development or operating purposes) adjacent, adjoining or in the immediate vicinity of the Lands to comprise one or more operating or development units (“Unit”), and drilling operations or production on any such Unit shall constitute compliance herewith to the same extent as though such operations or production were on the Lands. Lessor’s participation interest in any Unit shall be the proportion of the Geothermal Resources and/or Substances that are utilized by Lessee on such lands as determined by an assessment conducted by an independent and qualified expert in relation to the total Geothermal Resources and/or Substances utilized in the Unit. Such Unit shall come into existence upon Lessee’s execution in writing and recordation in the Office of the Recorder in the County or Counties where the Lands are located, of an instrument identifying and describing the Unit’s acreage. Lessee shall at all times keep Lessor informed of the Lands included in any Unit. (b) Lessee shall have the right at any time or times to increase or decrease the size of any Unit, and any change in the amount of Lessor’s royalties resulting from the unitization of all or part of the Lands or an increase or decrease of the Lands in a Unit shall not be retroactive. (c) As to each and any such Unit, Lessee shall have the right to commingle for the purpose of utilizing, selling or processing, or causing to be processed, the steam or steam power and/or extractable minerals produced from such Unit with the steam or steam power and/or extractable minerals produced from other lands or units, so long as the production from the Unit which includes all or portions of the Lands is measured, metered or gauged as to Unit production; Unit production so measured, metered or gauged shall then be allocated to the Lands in accordance with the provisions of Section 12(a) above. (d) Allocation, as aforesaid, shall cease upon any termination, either in whole or in part (by surrender, forfeiture or otherwise), of this or any other lease covering lands in such Unit as to the lands covered by such terminated lease or part thereof. In the event of the failure of Lessor’s or any other owner’s title as to any portion of the lands included in any such Unit, such portion of such land shall likewise be excluded in allocating production from such Unit; provided however, Lessee shall not be held to account for any production allocated to any lands to be excluded, as aforesaid, from such Unit unless and until Lessee has actual knowledge of the aforesaid circumstances requiring such exclusion. (e) If any taxes of any kind are levied or assessed (other than taxes on the land as such or any rights thereto not covered by the Lease), any portion of which is chargeable to Lessor under Paragraph 10 hereof, then the share of such taxes to be borne by Lessor as provided in the Lease shall be in proportion to the share of the royalty from such Unit allocated to the Lands, subject to controlling law. (f) Lessee may, at its sole option, at any time when there is no production in such Unit of Substances and/or Geothermal Resources in quantities deemed paying by Lessee, terminate such Unit by a written declaration, in the manner in which it was created. (g) Notwithstanding the above provision in this Section 12, Lands committed to such a unit shall be limited to the amount of acres required to prudently develop and utilize Geothermal Resources for the purpose of this Lease, accordingly once production is established only those portions of the Lands necessary to supply Geothermal Resources for the production of electricity or otherwise shall be permitted to be reserved and held by unitization.

UNITIZATION. (a) Subject to the conditions of Subsection (g) below, Lessee shall have the continuing and recurring right, at its sole option, from time to time, either before or after productionbut not the obligation, to unitize, pool or combine unitize all or any part of the Lands leased premises or interest therein with any other land lands, leases, or lands interests, as to any or lease all depths or leases (whether held zones, and as to any or all covered minerals, either before or after the commencement of production, so as to constitute a unit or units whenever, in Lessee’s sole judgment, such unitization is required to prevent waste or promote and encourage the conservation of oil and gas by Lessee any cooperative or others and whether or not the surface unit plan of such lands may be used for development or operating purposes) adjacentoperation or by a cycling, adjoining pressure maintenance, repressuring or in secondary recovery program. Any such unit formed shall comply with the immediate vicinity local, State, and Federal laws and with the orders, rules, and regulations of the Lands to comprise one State or more operating Federal regulatory or development units (“Unit”), and drilling operations or production on any such Unit shall constitute compliance herewith to the same extent as though such operations or production were on the Landsconservation agency having jurisdiction. Lessor’s participation interest in any Unit shall be the proportion of the Geothermal Resources and/or Substances that are utilized by Lessee on such lands as determined by an assessment conducted by an independent and qualified expert in relation to the total Geothermal Resources and/or Substances utilized in the Unit. Such Unit shall come into existence upon Lessee’s execution in writing and recordation in the Office of the Recorder in the County or Counties where the Lands are located, of an instrument identifying and describing the Unit’s acreage. Lessee shall at all times keep Lessor informed of the Lands included in any Unit. (b) Lessee shall have the right at any time or times to increase or decrease the The size of any Unitsuch unit may be increased by including acreage believed to be productive, and decreased by excluding acreage believed to be unproductive, or where the owners of which do not join the unit, but any such change resulting in the amount of Lessor’s royalties resulting from the unitization of all or part of the Lands or an increase or decrease of the Lands in a Unit Lessor’s royalty shall not be retroactive. (c) As to each and any . Any such Unitunit may be established, Lessee shall have the right to commingle for the purpose of utilizing, selling or processingenlarged, or causing to be processeddiminished and, in the steam or steam power and/or extractable minerals produced from such Unit with the steam or steam power and/or extractable minerals produced from other lands or units, so long as the absence of production from the Unit unit area,may be abolished and dissolved by filing of record an instrument so declaring. Operations anywhere on any part of a unit which includes all or portions any part of the Lands leased premises, regardless of whether such Operations were commenced before or after the execution of this Lease or the instrument declaring the unit, shall be treated for all purposes as if they were Operations on the leased premises and references in this Lease to production from or Operations on the leased premises shall be deemed to include production from or Operations on any portion of such unit; provided that if after creation of a unit a well is measureddrilled on land within the unit area (other than the leased premises) which well is not classified as the type of well for which the unit was created (oil, metered gas or gauged other covered minerals as to Unit production; Unit production so measuredthe case may be), metered or gauged such well shall then be allocated to the Lands in accordance with considered a dry hole for purposes of applying the provisions of Section 12(athis Lease set forth in paragraph 2(b) above. (d) Allocation, as aforesaid, hereof. Lessee shall cease upon any termination, either in whole or in part (by surrender, forfeiture or otherwise), of this or any other lease covering lands in such Unit as allocate to the lands covered by such terminated lease or part thereof. In the event of the failure of Lessor’s or any other owner’s title as to any portion of the lands leased premises included in any such Unit, such portion unit a fractional part of such land shall likewise be excluded in allocating production from such Unitunit on any one of the following basis: (a) the ratio between the participating acreage in the leased premises in such units and the total of all participating acreage in the unit, or (b) the ratio between the estimated quantity of recoverable reserves underlying the leased premises in such unit and the estimated total of recoverable underlying all lands within such unit; or, (c) any other basis approved by State or Federal authorities having jurisdiction over such matters. Lessor shall be entitled to the royalties provided however, Lessee shall not be held to account for any under this Lease on the part of the unit production so allocated to any lands to be excluded, as aforesaid, from such Unit unless and until Lessee has actual knowledge that part of the aforesaid circumstances requiring such exclusion. (e) If any taxes of any kind are levied or assessed (other than taxes on the land as such or any rights thereto not covered by the Lease), any portion of which is chargeable to Lessor under Paragraph 10 hereof, then the share of such taxes to be borne by Lessor as provided in the Lease shall be in proportion to the share of the royalty from such Unit allocated to the Lands, subject to controlling law. (f) Lessee may, at its sole option, at any time when there is no production leased premises included in such Unit of Substances and/or Geothermal Resources in quantities deemed paying by Lessee, terminate such Unit by a written declaration, in the manner in which it was createdunit and no more. (g) Notwithstanding the above provision in this Section 12, Lands committed to such a unit shall be limited to the amount of acres required to prudently develop and utilize Geothermal Resources for the purpose of this Lease, accordingly once production is established only those portions of the Lands necessary to supply Geothermal Resources for the production of electricity or otherwise shall be permitted to be reserved and held by unitization.

UNITIZATION. (a) Subject to the conditions of Subsection (g) below, Lessee shall have the right, at its sole option, from time to time, either before or after production, to unitize, pool or combine all or any part of the Lands or interests with other land or lands or lease or leases (whether held by Lessee or others and whether or not the surface of such lands may be used for development or operating purposes) adjacent, adjoining or in the immediate vicinity of the Lands to comprise one or more operating or development units (“"Unit”"), and drilling operations or production on any such Unit shall constitute compliance herewith to the same extent as though such operations or production were on the Lands. Lessor’s 's participation interest in any Unit shall be the proportion of that the Geothermal Resources and/or Substances that are utilized by Lessee on such lands as determined by an assessment conducted by an independent and qualified expert Lessor's one-sixth interest in relation the Lands within the Unit bear to the total Geothermal Resources and/or Substances utilized number of acres in the Unit. Such Unit shall come into existence upon Lessee’s 's execution in writing and recordation in the Office of the County Recorder in the County or Counties where county in which the Lands are locatedsituated, of an instrument identifying and describing the Unit’s 's acreage. Lessee shall at all times keep Lessor informed in writing of the Lands included in any Unit. (b) Lessee shall have the right at any time or times to increase or decrease the size of any Unit, and any change in the amount of Lessor’s 's royalties resulting from the unitization of all or part of the Lands or an increase or decrease of the Lands in a Unit shall not be retroactive. (c) As to each and any such Unit, Lessee shall have the right to commingle for the purpose of utilizing, selling or processing, or causing to be processed, the steam or steam power and/or extractable minerals produced from such Unit with the steam or steam power and/or extractable minerals produced from other lands or units, so long as the production from the Unit which includes all or portions of the - Lands is measured, metered or gauged as to Unit production; Unit production so measured, metered or gauged shall then be allocated to the Lands in accordance with the provisions of Section 12(a) above. (d) Allocation, as aforesaid, shall cease upon any termination, either in whole or in part (by surrender, forfeiture or otherwise), of this or any other lease covering lands in such Unit as to the lands covered by such terminated lease or part thereof. In the event of the failure of Lessor’s 's or any other owner’s 's title as to any portion of the lands included in any such Unit, such portion of such land shall likewise be excluded in allocating production from such Unit; provided provided, however, Lessee shall not be held to account for any production allocated to any lands to be excluded, as aforesaid, from such Unit unless and until Lessee has actual knowledge of the aforesaid circumstances requiring such exclusion., (e) If any taxes of any kind are levied or assessed (other than taxes on the land as such or any rights thereto not covered by the Lease), any portion of which is chargeable to Lessor under Paragraph 10 hereof, then the share of such taxes to be borne by Lessor as provided in the Lease shall be in proportion to the share of the royalty from such Unit allocated to the Lands, subject to controlling law. (f) Lessee may, at its sole option, at any time when there is no production in such Unit of Substances and/or Geothermal Resources in quantities deemed paying by Lessee, terminate such Unit by a written declaration, in the manner in which it was created. (g) Notwithstanding the above provision in this Section 12, Lands committed to such a unit shall be limited to the amount of acres required to prudently develop and utilize Geothermal Resources for the purpose of this Lease, accordingly once production is established only those portions of the Lands necessary to supply Geothermal Resources for the production of electricity or otherwise shall be permitted to be reserved and held by unitization.

UNITIZATION. (a) Subject to the conditions of Subsection (g) below, Lessee shall have the right, at its sole option, from time to time, either before or after production, to unitize, pool or combine all or any part of the Lands or interests with other land or lands or lease or leases (whether held by Lessee or others and whether or not the surface of such lands may be used for development or operating purposes) adjacent, adjoining or in the immediate vicinity of the Lands to comprise one or more operating or development units (“"Unit”"), and drilling operations or production on any such Unit shall constitute compliance herewith to the same extent as though such operations or production were on the Lands. Lessor’s 's participation interest in any Unit shall be the proportion of that the Geothermal Resources and/or Substances that are utilized by Lessee on such lands as determined by an assessment conducted by an independent and qualified expert Lessor's one-sixth interest in relation the Lands within the Unit bear to the total Geothermal Resources and/or Substances utilized number of acres in the Unit. Such Unit shall come into existence upon Lessee’s 's execution in writing and recordation in the Office of the County Recorder in the County or Counties where county in which the Lands are locatedsituated, of an instrument identifying and describing the Unit’s 's acreage. Lessee shall at all times keep Lessor informed in writing of the Lands included in any Unit. (b) Lessee shall have the right at any time or times to increase or decrease the size of any Unit, and any change in the amount of Lessor’s 's royalties resulting from the unitization of all or part of the Lands or an increase or decrease of the Lands in a Unit shall not be retroactive. (c) As to each and any such Unit, Lessee shall have the right to commingle for the purpose of utilizing, selling or processing, or causing to be processed, the steam or steam power and/or extractable minerals produced from such Unit with the steam or steam power and/or extractable minerals produced from other lands or units, so long as the production from the Unit which includes all or portions of the Lands is measured, metered or gauged as to Unit production; Unit production so measured, metered or gauged shall then be allocated to the Lands in accordance with the provisions of Section 12(a) above., (d) Allocation, as aforesaid, shall cease upon any termination, either in whole or in part (by surrender, forfeiture or otherwise), of this or any other lease covering lands in such Unit as to the lands covered by such terminated lease or part thereof. thereof In the event of the failure of Lessor’s 's or any other owner’s 's title as to any portion of the lands included in any such Unit, such portion of such land shall likewise be excluded in allocating production from such Unit; provided provided, however, Lessee shall not be held to account for any production allocated to any lands to be excluded, as aforesaid, from such Unit unless and until Lessee has actual knowledge of the aforesaid circumstances requiring such exclusion. (e) If any taxes of any kind are levied or assessed (other than taxes on the land as such or any rights thereto not covered by the Lease), any portion of which is chargeable to Lessor under Paragraph 10 hereof, then the share of such taxes to be borne by Lessor as provided in the Lease shall be in proportion to the share of the royalty from such Unit allocated to the Lands, subject to controlling law. (f) Lessee may, at its sole option, at any time when there is no production in such Unit of Substances and/or Geothermal Resources in quantities deemed paying by Lessee, terminate such Unit by a written declaration, in the manner in which it was created. (g) Notwithstanding the above provision in this Section 12, Lands committed to such a unit shall be limited to the amount of acres required to prudently develop and utilize Geothermal Resources for the purpose of this Lease, accordingly once production is established only those portions of the Lands necessary to supply Geothermal Resources for the production of electricity or otherwise shall be permitted to be reserved and held by unitization.

UNITIZATION. (a) Subject to the conditions of Subsection (g) below, Lessee shall have the right, at its sole option, from time to time, either before or after production, to unitize, pool or combine all or any part of the Lands or interests with other land or lands or lease or leases (whether held by Lessee or others and whether or not the surface of such lands may be used for development or operating purposes) adjacent, adjoining or in the immediate vicinity of the Lands to comprise one or more operating or development units (“"Unit”"), and drilling operations or production on any such Unit shall constitute compliance herewith to the same extent as though such operations or production were on the Lands. Lessor’s 's participation interest in any Unit shall be the proportion of that the Geothermal Resources and/or Substances that are utilized by Lessee on such lands as determined by an assessment conducted by an independent and qualified expert Lessor's one-third interest in relation the Lands within the Unit bear to the total Geothermal Resources and/or Substances utilized number of acres in the Unit. Such Unit shall come into existence upon Lessee’s 's execution in writing and recordation in the Office of the County Recorder in the County or Counties where county in which the Lands are locatedsituated, of an instrument identifying and describing the Unit’s 's acreage. Lessee shall at all times keep Lessor informed of the Lands included in any Unit. (b) Lessee shall have the right at any time or times to increase or decrease the size of any Unit, and any change in the amount of Lessor’s 's royalties resulting from the unitization of all or part of the Lands or an increase or decrease of the Lands in a Unit shall not be retroactive. (c) As to each and any such Unit, Lessee shall have the right to commingle for the purpose of utilizing, selling or processing, or causing to be processed, the steam or steam power and/or extractable minerals produced from such Unit with the steam or steam power and/or extractable minerals produced from other lands or units, so long as the production from the Unit which includes all or portions of the Lands is measured, metered or gauged as to Unit production; Unit production so measured, metered or gauged shall then be allocated to the Lands in accordance with the provisions of Section 12(a16(a) above. (d) Allocation, as aforesaid, shall cease upon any termination, either in whole or in part (by surrender, forfeiture or otherwise), of this or any other lease covering lands in such Unit as to the lands covered by such terminated lease or part thereof. In the event of the failure of Lessor’s 's or any other owner’s 's title as to any portion of the lands included in any such Unit, such portion of such land shall likewise be excluded in allocating production from such Unit; provided provided, however, Lessee shall not be held to account for any production allocated to any lands to be excluded, as aforesaid, from such Unit unless and until Lessee has actual knowledge of the aforesaid circumstances requiring such exclusion. (e) If any taxes of any kind are levied or assessed (other than taxes on the land as such or any rights thereto not covered by the Lease), any portion of which is chargeable to Lessor under Paragraph 10 14 hereof, then the share of such taxes to be borne by Lessor as provided in the Lease shall be in proportion to the share of the royalty from such Unit allocated to the Lands, subject to controlling law. (f) Lessee may, at its sole option, at any time when there is no production in such Unit of Substances and/or Geothermal Resources in quantities deemed paying by Lessee, terminate such Unit by a written declaration, in the manner in which it was created. (g) Notwithstanding the above provision in this Section 12, Lands committed to such a unit shall be limited to the amount of acres required to prudently develop and utilize Geothermal Resources for the purpose of this Lease, accordingly once production is established only those portions of the Lands necessary to supply Geothermal Resources for the production of electricity or otherwise shall be permitted to be reserved and held by unitization.

UNITIZATION. (a) Subject to the conditions of Subsection (g) below, Lessee shall have the right, at its sole option, from time to time, either before or after production, to unitize, pool or combine all or any part of the Lands with other land or lands or lease or leases (whether held by Lessee or others and whether or not the surface of such lands may be used for development or operating purposes) adjacent, adjoining or in the immediate vicinity of the Lands to comprise one or more operating or development units (“Unit”), and drilling operations or production on any such Unit shall constitute compliance herewith to the same extent as though such operations or production were on the Lands. Notwithstanding anything to the contrary, Lessee’s right to unitize with respect to property outside the Lands shall be limited to property within a five mile distance from the outer boundary. After geological testing, the parties reserve the right to renegotiate, and in writing agree to pooling or unitization consistent with adjacent geological structures exceeding the five-mile distance (reference paragraph 12 (g) herein). Lessor’s participation interest in any Unit shall be the proportion of the Geothermal Resources and/or Substances that are utilized by Lessee on such lands as determined by an assessment conducted by an independent and qualified expert in relation to the total Geothermal Resources and/or Substances utilized in the Unit. Such Unit shall come into existence upon Lessee’s execution in writing and recordation in the Office of the Recorder in the County or Counties where the Lands are located, of an instrument identifying and describing the Unit’s acreage. Lessee shall at all times keep Lessor informed of the Lands included in any Unit. (b) Lessee shall have the right at any time or times to increase or decrease the size of any Unit, and any change in the amount of Lessor’s royalties resulting from the unitization of all or part of the Lands or an increase or decrease of the Lands in a Unit shall not be retroactive. (c) As to each and any such Unit, Lessee shall have the right to commingle for the purpose of utilizing, selling or processing, or causing to be processed, the steam or steam power and/or extractable minerals produced from such Unit with the steam or steam power and/or extractable minerals produced from other lands or units, so long as the production from the Unit which includes all or portions of the Lands is measured, metered or gauged as to Unit production; Unit production so measured, metered or gauged shall then be allocated to the Lands in accordance with the provisions of Section 12(a12 (a) above. (d) Allocation, as aforesaid, shall cease upon any termination, either in whole or in part (by surrender, forfeiture or otherwise)) , of this or any other lease covering lands in such Unit as to the lands covered by such terminated lease or part thereof. In the event of the failure of Lessor’s or any other owner’s title as to any portion of the lands included in any such Unit, such portion of such land shall likewise be excluded in allocating production from such Unit; provided however, Lessee shall not be held to account for any production allocated to any lands to be excluded, as aforesaid, from such Unit unless and until Lessee has actual knowledge of the aforesaid circumstances requiring such exclusion. (e) If any taxes of any kind are levied or assessed (other than taxes on the land as such or any rights thereto not covered by the LeaseLease herein), any portion of which is chargeable to Lessor under Paragraph 10 hereof, then the share of such taxes to be borne by Lessor as provided in the Lease shall be in proportion to the share of the royalty from such Unit allocated to the Lands, subject to controlling law. (f) Lessee may, at its sole option, at any time when there is no production in such Unit of Substances and/or Geothermal Resources in quantities deemed paying by Lessee, terminate such Unit by a written declaration, in the manner in which it was created. (g) Notwithstanding the above provision in this Section 12, Lands committed to such a unit shall be limited to the amount of acres required to prudently develop and utilize Geothermal Resources for the purpose of this Lease, accordingly once production is established only those portions of the Lands necessary to supply Geothermal Resources for the production of electricity or otherwise shall be permitted to be reserved and held by unitization.

UNITIZATION. (a) Subject to the conditions of Subsection (g) below, Lessee shall have the right, at its sole option, from time to time, either before or after production, to unitize, pool or combine all or any part of the Lands or interests with other land or lands or lease or leases (whether held by Lessee or others and whether or not the surface of such lands may be used for development or operating purposes) adjacent, adjoining or in the immediate vicinity of the Lands to comprise one or more operating or development units (“"Unit”"), and drilling operations or production on any such Unit shall constitute compliance herewith to the same extent as though such operations or production were on the Lands. Lessor’s 's participation interest in any Unit shall be the proportion of that the Geothermal Resources and/or Substances that are utilized by Lessee on such lands as determined by an assessment conducted by an independent and qualified expert Lessor's one-third interest in relation the Lands within the Unit bear to the total Geothermal Resources and/or Substances utilized number of acres in the Unit. Such Unit shall come into existence upon Lessee’s 's execution in writing and recordation in the Office of the County Recorder in the County or Counties where county in which the Lands are locatedsituated, of an instrument identifying and describing the Unit’s 's acreage. Lessee shall at all times keep Lessor informed in writing of the Lands included in any Unit. (b) Lessee shall have the right at any time or times to increase or decrease the size of any Unit, and any change in the amount of Lessor’s 's royalties resulting from the unitization of all or part of the Lands or an increase or decrease of the Lands in a Unit shall not be retroactive. (c) As to each and any such Unit, Lessee shall have the right to commingle for the purpose of utilizing, selling or processing, or causing to be processed, the steam or steam power and/or extractable minerals produced from such Unit with the steam or steam power and/or extractable minerals produced from other lands or units, so long as the production from the Unit which includes all or portions of the Lands is measured, metered or gauged as to Unit production; Unit production so measured, metered or gauged shall then be allocated to the Lands in accordance with the provisions of Section 12(a) above. (d) Allocation, as aforesaid, shall cease upon any termination, either in whole or in part (by surrender, forfeiture or otherwise), of this or any other lease covering lands in such Unit as to the lands covered by such terminated lease or part thereof. In the event of the failure of Lessor’s 's or any other owner’s 's title as to any portion of the lands included in any such Unit, such portion of such land shall likewise be excluded in allocating production from such Unit; provided provided, however, Lessee shall not be held to account for any production allocated to any lands to be excluded, as aforesaid, from such Unit unless and until Lessee has actual knowledge of the aforesaid circumstances requiring such exclusion. (e) If any taxes of any kind are levied or assessed (other than taxes on the land as such or any rights thereto not covered by the Lease), any portion of which is chargeable to Lessor under Paragraph 10 hereof, then the share of such taxes to be borne by Lessor as provided in the Lease shall be in proportion to the share of the royalty from such Unit allocated to the Lands, subject to controlling law. (f) Lessee may, at its sole option, at any time when there is no production in such Unit of Substances and/or Geothermal Resources in quantities deemed paying by Lessee, terminate such Unit by a written declaration, . in the manner in which it was created. (g) Notwithstanding the above provision in this Section 12, Lands committed to such a unit shall be limited to the amount of acres required to prudently develop and utilize Geothermal Resources for the purpose of this Lease, accordingly once production is established only those portions of the Lands necessary to supply Geothermal Resources for the production of electricity or otherwise shall be permitted to be reserved and held by unitization.

UNITIZATION. (a) Subject to the conditions of Subsection (g) below, Lessee Xxxxx shall have the right, at its sole option, from time to time, either before or after production, to unitize, pool or combine all or any part of the Lands with other land or lands or lease or leases (whether held by Lessee Xxxxx or others and whether or not the surface of such lands may be used for development or operating purposes) adjacent, adjoining or in the immediate vicinity of the Lands to comprise one or more operating or development units (“Unit”), and drilling operations or production on any such Unit shall constitute compliance herewith to the same extent as though such operations or production were on the Lands. LessorOwner’s participation interest in any Unit shall be the proportion of the Geothermal Resources and/or Substances acreage that are is utilized by Lessee on Xxxxx as a participating area(s) for such lands as determined by an assessment conducted by an independent and qualified expert purposes in relation to the total Geothermal Resources and/or Substances acreage utilized as participating area(s) in the Unit. Such Unit shall come into existence upon Lessee’s Xxxxx’x execution in writing and recordation in the Office of the Recorder in the County or Counties where the Lands are located, of an instrument identifying and describing the Unit’s acreage, or as otherwise provided in the relevant Unit Agreement. Lessee Xxxxx shall at all times keep Lessor Owner informed of the Lands included in any Unit. (b) Lessee Xxxxx shall have the right at any time or times to increase or decrease the size of any Unit, and any change in the amount of LessorOwner’s royalties resulting from the unitization of all or part of the Lands or an increase or decrease of the Lands in a Unit shall not be retroactive. (c) As to each and any such Unit, Lessee Xxxxx shall have the right to commingle for the purpose of utilizing, selling or processing, or causing to be processed, the steam or steam power and/or extractable minerals produced from such Unit with the steam or steam power and/or extractable minerals produced from other lands or units, so long as the production from the Unit which includes all or portions of the Lands is measured, metered or gauged as to Unit production; Unit production so measured, metered or gauged shall then be allocated to the Lands in accordance with the provisions of Section 12(a) aboveherein. (d) Allocation, as aforesaid, shall cease upon any termination, either in whole or in part (by surrender, forfeiture or otherwise), of this or any other lease covering lands in such Unit as to the lands covered by such terminated lease or part thereof. In the event of the failure of LessorOwner’s or any other owner’s title as to any portion of the lands included in any such Unit, such portion of such land shall likewise be excluded in allocating production from such Unit; provided however, Lessee Xxxxx shall not be held to account for any production allocated to any lands to be excluded, as aforesaid, from such Unit unless and until Lessee Xxxxx has actual knowledge of the aforesaid circumstances requiring such exclusion. (e) If any taxes of any kind are levied or assessed (other than taxes on the land as such or any rights thereto not covered by the LeaseAgreement), any portion of which is chargeable to Lessor under Paragraph 10 hereofOwner, then the share of such taxes to be borne by Lessor Owner as provided in the Lease Agreement shall be in proportion to the share of the royalty from such Unit allocated to the Lands, subject to controlling lawlaw and the balance of any such tax shall be the sole responsibility of Xxxxx. To the extent Xxxxx shall fail to make such payments in a timely fashion after written notice from Owner and failure to cure within ten (10) days from such notice, such failure shall be construed as a major breach of this Agreement and of the Truckee Geothermal Lease agreement. (f) Lessee Xxxxx may, at its sole option, at any time when there is no production in such Unit of Substances and/or Geothermal Resources in quantities deemed paying by LesseeXxxxx, terminate such Unit by a written declaration, in the manner in which it was created. (g) Notwithstanding the above provision in this Section 12, Lands committed to such a A unit shall be limited to the amount of acres required to prudently develop and utilize Geothermal Resources for the purpose of this LeaseAgreement, accordingly once production is established only those portions of the Lands necessary to supply Geothermal Resources for the production of electricity or otherwise shall be deemed to constitute participating area(s) and be permitted to be reserved and held by unitization. Under no circumstances shall a geothermal plant be placed on the Lands where the majority of the relative unitization is upon lands not owned by Truckee, its heirs or assigns.