Unitization Agreement Sample Clauses
A Unitization Agreement is a contractual arrangement that combines the interests of multiple parties in a shared resource, such as an oil or gas reservoir, to facilitate joint development and operation. Under this agreement, the parties agree to pool their resources, share costs, and distribute production or profits according to predetermined proportions, often based on each party's original stake or contribution. This clause is essential for maximizing resource recovery, minimizing operational conflicts, and ensuring that all stakeholders benefit fairly from the efficient and coordinated exploitation of the shared asset.
Unitization Agreement. 1. Any joint Exploration and/or Exploitation of a Transboundary Reservoir or Unit Area pursuant to the terms of a unitization agreement must be approved by the Parties. Such joint Exploration and/or Exploitation shall be conducted pursuant to the terms of a unitization agreement negotiated and proposed by the Licensees and approved by the Executive Agencies. The Executive Agencies should develop one or more model unitization agreements for use under this Agreement.
2. The unitization agreement shall include, Inter alia: a. The identification of the limits of the Unit Area and that of any Transboundary Reservoir;
Unitization Agreement. Seller shall approve all ▇▇▇▇▇ proposed by Buyer, including, without limitation, all Obligation ▇▇▇▇▇, in accordance with the terms of that certain Plan of Unitization applicable to the ▇▇▇▇▇▇▇▇▇ Unit, Kingfisher County, Oklahoma, by and among Humble Oil & Refining Company, as Unit Operator, and the other signatories thereto, and dated as of August 18, 1961.
Unitization Agreement. 1. Any joint Exploration and/or Exploitation of a Transboundary Reservoir or Unit Area pursuant to the terms of a unitization agreement must be approved by the Parties. Such joint Exploration and/or Exploitation shall be conducted pursuant to the terms of a unitization agreement negotiated and proposed by the Licensees and approved by the Executive Agencies. The Executive Agencies should develop one or more model unitization agreements for use under this Agreement.
2. The unitization agreement shall include, Inter alia:
a. The identification of the limits of the Unit Area and that of any Transboundary Reservoir;
b. The identity of the Licensees and their respective participating interests;
c. The methodology used to calculate the allocation of production;
d. A development plan for the Exploration or Exploitation of the Unit Area, including the estimated number and timing of ▇▇▇▇▇, and a mechanism for delivery and approval of subsequent changes to such plan;
e. The effective date and term of the unitization agreement;
f. The identity and appointment of the unit operator, the process for resignation and removal of the unit operator, and the process for appointment of a successor unit operator;
g. Provisions regarding the transfer of interests;
h. Provisions for an accurate measurement of production;
i. Procedures for ensuring accurate payments of royalties and other proceeds;
j. Safety and environmental measures to be taken under the national laws of each Party;
k. Provisions for appropriate information sharing between the unit operator and each Party;
I. Procedures for the redetermination of the allocation of production, including a timetable or the events that trigger such redetermination.
3. Each Party shall require that, together with the submission of a proposed unitization agreement, its Licensee or the Licensees acting together through the unit operator, shall provide all available data required by a Party in order for it to review the proposed unitization agreement, and each Party shall ensure that such files and data are available to the other Party.
4. Each Executive Agency shall approve, approve with modifications or reject the proposed unitization agreement within 120 days of its receipt. Either Executive Agency may extend this period, provided that the total additional period for consideration shall not exceed 120 days. If after the end of the latest period applicable for consideration by an Executive Agency either Executive Agency has not appro...