Obligation to unitize Sample Clauses
The Obligation to Unitize clause requires parties, typically in oil and gas agreements, to combine their interests or operations with those of other parties when developing a shared resource, such as a reservoir that extends across multiple properties. This clause often mandates that if regulatory authorities or practical considerations necessitate unitization, the parties must cooperate in forming a unit agreement and share production or costs proportionally. Its core function is to ensure efficient resource development, prevent waste, and resolve conflicts that could arise from fragmented operations over a common resource.
Obligation to unitize. If any Hydrocarbon bearing reservoir lying within the Contract Area extends beyond such area, the Contractor must carry out all Development and Production in respect of such Hydrocarbon bearing reservoir in accordance with the Hydrocarbons Law. The Contractor shall use all reasonable endeavors to reach a mutually acceptable unitization agreement and program with all other affected Persons.
Obligation to unitize. If a Hydrocarbons deposit located within the Contract Area extends beyond that area, the Contractor must carry out all Development and Production of this Hydrocarbons deposit, in accordance with the Hydrocarbons Law. The Contractor will exert all reasonable efforts to reach a mutually acceptable unitization agreement and program with all other affected Persons.