Common use of UNITIZATION Clause in Contracts

UNITIZATION. 27.01 Lessee shall have the right, at any time or times, to pool and consolidate this lease, in whole or in part, or as to any stratum or strata, with lands or leases adjacent to or in the immediate vicinity of this lease, so as to constitute a unit or units for the purpose of entering with the owners and/or lessees into joint operating agreements providing for the joint operation and development of the leased premises, or portions thereof, with adjoining lands to prevent the drilling of an excessive number of xxxxx, or of xxxxx located too close to the boundary of this lease; provided, however, that such agreement and termination thereof shall not become valid unless and until the same shall have been approved in writing by Department; provided further, however, that if such joint operating agreements or unit agreements are entered into pursuant to a valid spacing or integration order, the approval of Department shall not be required. 27.02 Drilling, mining, or reworking operations upon, or production of oil or gas from any part of such unit shall be treated, for all purposes hereunder, as operations upon or production from the leased premises, provided that the Lessee is the owner of the off-lease property. 27.03 Upon production from any part of any such unit, Department shall be entitled to and Lessee shall pay royalties calculated as follows: a fractional part of the production shall be allocated to the portion of this lease included in such unit based on the ratio of the acres from the leased premises included in such unit to the total number of acres included in the unitized area, and Department shall be entitled to the royalties provided for in this lease on such fractional part of such production and no more; provided, that if State or Federal authorities shall prescribe a different method of allocation, the method so prescribed shall prevail.

UNITIZATION. 27.01 Lessee shall have the right, at any time or times, to pool and consolidate this lease, in whole or in part, or as to any stratum or strata, with lands or leases adjacent to or in the immediate vicinity of this lease, so as to constitute a unit or units for the purpose of entering with the owners and/or lessees lessees, into joint operating agreements providing for the joint operation and development of the leased premises, or portions thereof, with adjoining lands to prevent the drilling of an excessive number of xxxxx, or of xxxxx located too close to the boundary of this lease; provided, however, that such agreement and termination thereof shall not become valid unless and until the same shall have been approved in writing by Department; provided further, however, that if such joint operating agreements or unit agreements are entered into pursuant to a valid spacing or integration order, the approval of Department shall not be required. 27.02 Drilling, mining, or reworking operations upon, or production of oil or gas from any part of such unit shall be treated, for all purposes hereunder, as operations upon or production from the leased premises, provided that the Lessee is the owner of the off-lease property. 27.03 Upon production from any part of any such unit, Department shall be entitled to and Lessee shall pay royalties calculated as follows: a fractional part of the production there shall be allocated to the portion of this lease included in such unit based a fractional part of such production on the basis the ratio of the acres from the leased premises included in such unit bears to the total number of acres included in the unitized area, and Department shall be entitled to the royalties provided for in this lease on such fractional part of such production and no more; provided, that if State or Federal authorities shall prescribe a different method of allocation, the method so prescribed shall prevail.

UNITIZATION. 27.01 Lessee shall have the right, at any time or times, to pool and consolidate this lease, in whole or in part, or as to any stratum or strata, with lands or leases adjacent to or in the immediate vicinity of this lease, so as to constitute a unit or units for the purpose of entering with the owners and/or lessees lessees, into joint operating agreements providing for the joint operation and development of the leased premises, or portions thereof, with adjoining lands to prevent the drilling of an excessive number of xxxxx, or of xxxxx located too close to the boundary of this lease; provided, however, that such agreement and termination thereof shall not become valid unless and until the same shall have been approved in writing by Department; provided further, however, that if such joint operating agreements or unit agreements are entered into pursuant to a valid spacing or integration order, the approval of Department shall not be required.in 27.02 Drilling, mining, or reworking operations upon, or production of oil or gas from any part of such unit shall be treated, for all purposes hereunder, as operations upon or production from the leased premises, provided that the Lessee is the owner of the off-lease property. 27.03 Upon production from any part of any such unit, Department shall be entitled to and Lessee shall pay royalties calculated as follows: a fractional part of the production there shall be allocated to the portion of this lease included in such unit based a fractional part of such production on the basis the ratio of the acres from the leased premises included in such unit bears to the total number of acres included in the unitized area, and Department shall be entitled to the royalties provided for in this lease on such fractional part of such production and no more; provided, that if State or Federal authorities shall prescribe a different method of allocation, the method so prescribed shall prevail.