Unitization Procedure Sample Clauses
The Unitization Procedure clause establishes the process by which multiple separately owned tracts or interests are combined into a single operational unit for the purpose of resource development, such as oil or gas extraction. This clause typically outlines the steps for proposing, approving, and managing the unitization, including how production and costs are allocated among the parties involved. Its core function is to facilitate efficient resource extraction and management by coordinating operations across property lines, thereby preventing waste and ensuring fair distribution of benefits and responsibilities.
Unitization Procedure. The Contractor shall notify the Ministry of Energy and CNH within a period that shall not exceed (60) Business Days upon gathering the sufficient elements by which the existence of a shared reservoir is inferred. Such notice shall contain at least: (i) the underpinned technical analysis that determines the possible existence of a shared reservoir; (ii) the general characteristics of the shared reservoir; (iii) the geological, geophysical and other types of assessments used to determine the possible existence of such shared reservoir including, given the case, the information obtained during the drilling of ▇▇▇▇▇ that helped determine that the Discovery exceeded the limits of the Contract Area; (iv) a proposal of a Work Program for the Petroleum Activities prior to the unitization agreement between the Contractor and/or the third parties involved, and (v) additional information the Contractor deems convenient. Once the notice is received, the following shall occur:
(a) CNH will send to the Ministry of Energy, in a period not exceeding forty five (45) Business Days upon the corresponding information receipt, its technical opinion regarding the possible existence of a shared field.
(b) Upon the receipt of the information referred to in subparagraph (a) the Ministry of Energy shall have ten (10) Business Days to send to the Ministry of Finance the opinion prepared by CNH and other information deemed necessary to submit its opinion regarding the unitization in a period not exceeding thirty (30) Business Days.
(c) Once the opinion of the Ministry of Finance has been received, the Ministry of Energy shall have thirty (30) Business Days to instruct the Contractor about the unitization of the shared reservoir and will request to the Contractor the information referred to in the Applicable Laws regarding the unitization agreement. The Contractor shall have one hundred and twenty (120) Business Days to submit such information.
(d) In the event the Contractor does not submit to the Ministry of Energy the information referred in subparagraph (c) above and other information indicated in the Applicable Laws, the Ministry of Energy shall establish the terms and conditions under which the unitization shall be conducted. The aforementioned, during the next Year upon the end of the term referred in subparagraph (c) above. Based on the unitization agreement and on the participation proposal in the Petroleum Activities prior to the unitization agreement, as applicable, CNH may...
Unitization Procedure. The Contractor shall notify the Ministry of Energy and the CNH within (60) Business Days upon gathering all the elements to infer the existence of a shared reservoir. Such notice shall contain at least: (i) the underpinned technical analysis that determines the possible existence of a shared reservoir; (ii) the general characteristics of the shared reservoir;
Unitization Procedure. The Contractor shall notify the Ministry of Energy and CNH within no more than