Common use of Amendment of Drilling or Spacing Units/Unitization Clause in Contracts

Amendment of Drilling or Spacing Units/Unitization. Without joinder or consent of Grantee or notice thereto, Grantor shall have the right and power to unitize all or any portion of the Subject Interest with other areas and to amend or terminate any unitization agreements, as would a reasonably prudent operator without giving effect to the Overriding Royalty Interest. If and whenever, through the exercise of this power or pursuant to any law or regulation, or any order of any Government Authority, any portion of the Subject Interest is unitized, the Overriding Royalty Interest, insofar as it relates to such unitized area, shall be calculated in the proportion that the Subject Interest shares in productions from such unitized area.