Canada Oil and Gas Operations Act
Marginal note:Contents of unitization application
40 (1) An application for a unitization order shall contain
(a) a plan showing the unit area that the applicant desires to be made subject to the order;
(b) one copy each of the unit agreement and the unit operating agreement;
(c) a statement of the nature of the operations to be carried out; and
(d) a statement showing
(i) with respect to each proposed unit tract, the names and addresses of the working interest owners and royalty owners in that tract, and
(ii) the tracts that are entitled to be qualified as unit tracts under the provisions of the unit agreement.
Marginal note:Details required of unit agreement
(2) The unit agreement referred to in subsection (1) shall include
(a) a description of the unit area and the unit tracts included in the agreement;
(b) an allocation to each unit tract of a share of the production from the unitized zone not required, consumed or lost in the unit operation;
(c) a provision specifying the manner in which and the circumstances under which the unit operation shall terminate; and
(d) a provision specifying that the share of the production from a unit area that has been allocated to a unit tract shall be deemed to have been produced from that unit tract.
Marginal note:Details required of unit operating agreement
(3) The unit operating agreement referred to in subsection (1) shall make provision
(a) for the contribution or transfer to the unit, and any adjustment among the working interest owners, of the investment in wells and equipment within the unit area;
(b) for the charging of the costs and expenses of the unit operation to the working interest owners;
(c) for the supervision of the unit operation by the working interest owners through an operating committee composed of their duly authorized representatives and for the appointment of a unit operator to be responsible, under the direction and supervision of the operating committee, for the carrying out of the unit operation;
(d) for the determination of the percentage value of the vote of each working interest owner; and
(e) for the determination of the method of voting on any motion before the operating committee and the percentage value of the vote required to carry the motion.
- R.S., c. O-4, s. 29
- Date modified: