Common use of UNITIZATION Clause in Contracts

UNITIZATION. (a) As to the undivided interests owned by the State in the oil, gas, or associated substances in the leased area, 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. Likewise, as to the undivided interests owned by ASRC in the oil, gas, or associated substances in the leased area, 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, with the express prior written approval of ASRC of such a cooperative or unit agreement and upon such terms and conditions as shall be mutually agreed by xxxxxx and ASRC. (b) The State's approval of a cooperative or unit agreement or of any change in any such agreement shall be effective with respect only to the undivided interests owned by the State in the oil, gas, or associated substances in the leased area or part of the leased area included in or affected by that agreement. Likewise, ASRC's approval of a cooperative or unit agreement or of any change in any such agreement shall be effective with respect only to the undivided interests owned by ASRC in the oil, gas, or associated substances in the leased area or part of the leased area included in or affected by that agreement. If the State's approval of a cooperative or unit agreement including or affecting the undivided interests owned by the State in oil, gas or associated substances in all or part of the leased area is conditioned upon such agreement being effective with respect to the undivided interests in oil, gas, or associated substances owned by ASRC in such area, the lessee must obtain written approval by ASRC of a proposed cooperative or unit agreement before submitting an application to the State for approval of such cooperative or unit agreement. ASRC may condition its approval of any such proposed cooperative or unit agreement in such manner as ASRC deems necessary to protect its interests, including, without limitation, requiring its further consent to any changes in the application for State approval or in the proposed cooperative or unit agreement. (c) The lessee agrees, within six months after demand by both the State and ASRC, to subscribe to a reasonable cooperative or unit agreement approved by both lessors that will adequately protect all parties in interest, including the lessors. Further, the lessors, acting jointly reserve the right to prescribe such an agreement upon terms and conditions approved by both lessors. (d) The lessee also agrees, within six months after demand by the State alone, to subscribe to a reasonable cooperative or unit agreement approved by the State and including and affecting the undivided interests owned by the State in oil, gas or associated substances in the leased area or part thereof that will adequately protect all parties in interest, including the State. Further, the State reserves the right to prescribe such an agreement including and affecting the undivided interests owned by the State in oil, gas, and associated substances upon terms and conditions approved by the State. However, no cooperative or unit agreement required or prescribed by the State alone pursuant to this subparagraph

UNITIZATION. (a) As to the undivided interests owned by the State in the oil, gas, or associated substances in the leased area, 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 approves that the cooperative or unit agreement is in the public interest. Likewise, as to the undivided interests owned by ASRC in the oil, gas, or associated substances in the leased area, 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, with the express prior written approval of ASRC of such a cooperative or unit agreement and upon such terms and conditions as shall be mutually agreed by xxxxxx lessee and ASRC. (b) The State's approval of a cooperative or unit agreement or of any change in any such agreement shall be effective with respect only to the undivided interests owned by the State in the oil, gas, or associated substances in the leased area or part of the leased area included in or affected by that agreement. Likewise, ASRC's approval of a cooperative or unit agreement or of any change in any such agreement shall be effective with respect only to the undivided interests owned by ASRC in the oil, gas, or associated substances in the leased area or part of the leased area included in or affected by that agreement. If the State's approval of a cooperative or unit agreement including or affecting the undivided interests owned by the State in oil, gas or associated substances in all or part of the leased area is conditioned upon such agreement being effective with respect to the undivided interests in oil, gas, or associated substances owned by ASRC in such area, the lessee must obtain written approval by ASRC of a proposed cooperative or unit agreement before submitting an application to the State for approval of such cooperative or unit agreement. ASRC may condition its approval of any such proposed cooperative or unit agreement in such manner as ASRC deems necessary to protect its interests, including, without limitation, requiring its further consent to any changes in the application for State approval or in the proposed cooperative or unit agreement. (c) The lessee agrees, within six months after demand by both the State and ASRC, to subscribe to a reasonable cooperative or unit agreement approved by both lessors that will adequately protect all parties in interest, including the lessors. Further, the lessors, acting jointly reserve the right to prescribe such an agreement upon terms and conditions approved by both lessors. (d) The lessee also agrees, within six months after demand by the State alone, to subscribe to a reasonable cooperative or unit agreement approved by the State and including and affecting the undivided interests owned by the State in oil, gas or associated substances in the leased area or part thereof that will adequately protect all parties in interest, including the State. Further, the State reserves the right to prescribe such an agreement including and affecting the undivided interests owned by the State in oil, gas, and associated substances upon terms and conditions approved by the State. However, no cooperative or unit agreement required or prescribed by the State alone pursuant to this subparagraph (d) shall be effective with respect to the undivided interests owned by ASRC in oil, gas or associated substances in the leased area without the express agreement and approval of such agreement by ASRC. (e) Except as otherwise provided in this subparagraph, where only a portion of the leased area is committed to a unit agreement approved by a lessor, that commitment constitutes a severance of this lease as to the undivided interests owned by that lessor in 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 covering the undivided interest in oil, gas, and associated substances owned by that lessor and 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 and any applicable 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 lease has a well capable of production in paying quantities on it before commitment to a unit agreement, this lease will not be severed pursuant to the subparagraph, and if any portion of the leased area is included in a participating area formed under a unit agreement approved by a lessor, the undivided interests in oil, gas, or associated substances owned by that lessor in the entire leased area will remain committed to the unit and this lease will not be severed as to the undivided interests in oil, gas, and associated substances in the leased area owned by that lessor. (f) Neither the State nor ASRC will unreasonably withhold any approval required by this section.

UNITIZATION. (a) As to the undivided interests owned by the State in the oil, gas, or associated substances in the leased area, 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. Likewise, as to the undivided interests owned by ASRC in the oil, gas, or associated substances in the leased area, 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, with the express prior written approval of ASRC of such a cooperative or unit agreement and upon such terms and conditions as shall be mutually agreed by xxxxxx and ASRC. (b) The State's approval of a cooperative or unit agreement or of any change in any such agreement shall be effective with respect only to the undivided interests owned by the State in the oil, gas, or associated substances in the leased area or part of the leased area included in or affected by that agreement. Likewise, ASRC's approval of a cooperative or unit agreement or of any change in any such agreement shall be effective with respect only to the undivided interests owned by ASRC in the oil, gas, or associated substances in the leased area or part of the leased area included in or affected by that agreement. If the State's approval of a cooperative or unit agreement including or affecting the undivided interests owned by the State in oil, gas or associated substances in all or part of the leased area is conditioned upon such agreement being effective with respect to the undivided interests in oil, gas, or associated substances owned by ASRC in such area, the lessee must obtain written approval by ASRC of a proposed cooperative or unit agreement before submitting an application to the State for approval of such cooperative or unit agreement. ASRC may condition its approval of any such proposed cooperative or unit agreement in such manner as ASRC deems necessary to protect its interests, including, without limitation, requiring its further consent to any changes in the application for State approval or in the proposed cooperative or unit agreement. (c) The lessee agrees, within six months after demand by both the State and ASRC, to subscribe to a reasonable cooperative or unit agreement approved by both lessors that will adequately protect all parties in interest, including the lessors. Further, the lessors, acting jointly reserve the right to prescribe such an agreement upon terms and conditions approved by both lessors. (d) The lessee also agrees, within six months after demand by the State alone, to subscribe to a reasonable cooperative or unit agreement approved by the State and including and affecting the undivided interests owned by the State in oil, gas or associated substances in the leased area or part thereof that will adequately protect all parties in interest, including the State. Further, the State reserves the right to prescribe such an agreement including and affecting the undivided interests owned by the State in oil, gas, and associated substances upon terms and conditions approved by the State. However, no cooperative or unit agreement required or prescribed by the State alone pursuant to this subparagraph (d) shall be effective with respect to the undivided interests owned by ASRC in oil, gas or associated substances in the leased area without the express agreement and approval of such agreement by ASRC. (e) Except as otherwise provided in this subparagraph, where only a portion of the leased area is committed to a unit agreement approved by a lessor, that commitment constitutes a severance of this lease as to the undivided interests owned by that lessor in 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 covering the undivided interest in oil, gas, and associated substances owned by that lessor and 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 and any applicable 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 pursuant to the subparagraph, and if any portion of the leased area is included in a participating area formed under a unit agreement approved by a lessor, the undivided interests in oil, gas, or associated substances owned by that lessor in the entire leased area will remain committed to the unit and this lease will not be severed as to the undivided interests in oil, gas, and associated substances in the leased area owned by that lessor. (f) Neither the State nor ASRC will unreasonably withhold any approval required by this section.