Examples of Unit Area in a sentence
Under a Unitization Agreement, each mineral rights holder is paid a royalty based on their proportional share of the entire Unit Area regardless of whether or not their lands are actually mined.
For example, if one mineral rights holder owns rights to 4,000 hectares within a 40,000 hectare Unit Area, they would be paid 10% of the total monthly royalty payout from that Unit Area.
Unless expressly provided in a particular provision, this Agreement does not cover or pertain to assets or operations in the Additional Unit Area.
Pursuant to certain agreements, the Additional Unit Area is included within the Beta Unit, but is not governed by the Unit Operating Agreement (defined below).
The operator of any well subject to this Agreement, agrees not to allow, or cause the release of any Hazardous Material on, into or from the Unit Area that could result in (1) the violation of any Environmental Law or in the creation of any Environmental Claim, including without limitation, notification, or remediation, under any Environmental Law or (2) a diminution in value of the property.