Oklahoma § 52-287.9 - Modification of property rights, leases and contracts Title to property - Distribution of proceeds - Delivery in kind Effect of operations - Matters not affected

§ 52-287.9. Modification of property rights, leases and contracts Title to property - Distribution of proceeds - Delivery in kind Effect of operations - Matters not affected

Property rights, leases, contracts, and all other rights and

obligations shall be regarded as amended and modified to the extent

necessary to conform to the provisions and requirements of this act

and to any valid and applicable plan of unitization or order of the

Oklahoma Statutes - Title 52. Oil and Gas

Commission made and adopted pursuant hereto, but otherwise to remain

in full force and effect.

Nothing contained in this act shall be construed to require a

transfer to or vesting in the unit of title to the separately-owned

tracts or leases thereon within the unit area, other than the right

to use and operate the same to the extent set out in the plan of

unitization; nor shall the unit be regarded as owning the unit

production. The unit production and the proceeds from the sale

thereof shall be owned by the several persons to whom the same is

allocated under the plan of unitization. All property, whether real

or personal, which the unit may in any way acquire, hold or possess

shall not be acquired, held or possessed by the unit for its own

account but shall be so acquired, held and possessed by the unit for

the account and as agent of the several lessees and shall be the

property of such lessees as their interests may appear under the

plan of unitization, subject, however, to the right of the unit to

the possession, management, use or disposal of the same in the

proper conduct of its affairs, and subject to any lien the unit may

have thereon to secure the payment of unit expense.

The amount of the unit production allocated to each separatelyowned tract within the unit, and only that amount, regardless of the

well or wells in the unit area from which it may be produced, and

regardless of whether it be more or less than the amount of the

production from the well or wells, if any, on any such separatelyowned tract, shall for all intents, uses and purposes be regarded

and considered as production from such separately-owned tract, and,

except as may be otherwise authorized in this act, or in the plan of

unitization approved by the Commission, shall be distributed among

or the proceeds thereof paid to the several persons entitled to

share in the production from such separately-owned tract in the same

manner, in the same proportions, and upon the same conditions that

they would have participated and shared in the production or

proceeds thereof from such separately-owned tract had not said unit

been organized, and with the same legal force and effect. If

adequate provisions are made for the receipt thereof, the share of

the unit production allocated to each separately-owned tract shall

be delivered in kind to the persons entitled thereto by virtue of

ownership of oil and gas rights therein or by purchase from such

owners subject to the rights of the unit to withhold and sell the

same in payment of unit expense pursuant to the plan of unitization,

and subject further to the call of the unit on such portions of the

gas for operating purposes as may be provided in the plan of

unitization.

Operations carried on under and in accordance with the plan of

unitization shall be regarded and considered as a fulfillment of and

compliance with all of the provisions, covenants, and conditions,

express or implied, of the several oil and gas mining leases upon

Oklahoma Statutes - Title 52. Oil and Gas

lands included within the unit area, or other contracts pertaining

to the development thereof, insofar as said leases or other

contracts may relate to the common source of supply or portion

thereof included in the unit area. Wells drilled or operated on any

part of the unit area no matter where located shall for all purposes

be regarded as wells drilled on each separately-owned tract within

such unit area.

Nothing herein or in any plan of unitization shall be construed

as increasing or decreasing the implied covenants of a lease in

respect to a common source of supply or lands not included within

the unit area of a unit.

Added by Laws 1951, p. 140, § 9, emerg. eff. May 26, 1951.