Common use of Pooling and Unitization Clause in Contracts

Pooling and Unitization. Harbour at any time and from time to time shall have the right to include the said lands or any part or parts thereof and as to all or any of the leased substances and/or petroleum and natural gas, in a unit operation or pooling agreement entered into by non-associated companies dealing at arms length for the unitised or pooled development and/or operation thereof with other lands, if such becomes necessary or desirable in the sole opinion of Harbour. In addition, Harbour shall have the right from time to time in their sole discretion to alter, amend, extend or cancel any such unit operation or pooling agreement. The basis and manner of allocating unitised or pooled production among several tracts of unitised or pooled land and the content of any such operating agreement shall be in the sole discretion and determination of Harbour and if exercised bona fide shall be binding upon the Geologist. Upon any such unitization or pooling the royalty payable in respect of production and sale of the leased substances from any portion of the said lands set out in Schedule "A" hereto so unitised or pooled shall be calculated as provided in Clause 3 hereof on the value of production or unitised or pooled substances produced and sold from the unit and allocated under such unit operating agreement to that portion of the said lands included in the unit from time to time.