Common use of Unit Configuration Clause in Contracts

Unit Configuration. Insofar as possible, taking into consideration the productive limits of the producing interval, the configuration of the mineral ownership boundaries and the unit configuration for the Leased Premises, the lands included within the production unit for a well shall be in the form of a square or rectangle. Reasonable efforts shall be made by Lessee in designating production units to avoid excluding small or irregular shaped portions of the Leased Premises. Units assigned to ▇▇▇▇▇ producing from different zones may overlap, and shall overlap when necessary to comply with the requirements of this section. If a well is producing from more than one formation, its production unit’s size and configuration shall conform to the to the limitations set forth herein or the Ohio Department of Natural Resources (“ODNR”) (or other government entity with jurisdiction) rules applicable to the well which provides the largest production unit (subject to the size limitations stated above). If all or a portion of the Leased Premises is included in a pooled unit, then for purposes of this paragraph all the lands within the pooled unit shall be considered a part of the Leased Premises, and the size and configuration of the production unit(s) must conform to the requirements of this paragraph for a production unit if such unit is established by Lessee. Lessor specifically recognizes that Lessee, at Lessee’s option, may drill multiple ▇▇▇▇▇ within a unit provided that such is permitted by the ODNR.

Appears in 2 contracts

Sources: Oil and Gas Lease, Oil and Gas Lease