Common use of Unit Agreement Clause in Contracts

Unit Agreement. You, the other les- sees, and the unit operator must enter into a unit agreement. The unit agree- ment must: allocate benefits to unit- ized leases, designate a unit operator, and specify the effective date of the unit agreement. The unit agreement must terminate when: the unit no longer produces unitized substances, and the unit operator no longer con- ducts drilling or well-workover oper- ations (§ 250.180) under the unit agree- ment, unless the Regional Supervisor orders or approves a suspension of pro- duction under § 250.170.