Re:time again/ say slowly..u n i t i z a t i o n - Corte Silverhound Lanman
posted on
Jan 22, 2009 03:52PM
Developing large acreage positions of unconventional and conventional oil and gas resources
>it looks to me like if the area is unitized, he gets an additional 2% overriding royalty on everything within a 30 mile radius outside of the original licenses.
And futher to that, unlike the 5% royalty to Gustavson, where Exxon and MOL will be covering 67%, ExxonMobil has been excluded from any responsibility for the 2% royalty. It's interesting that they didn't specifically exclude MOL also.
"Each Party shall bear its Participating Interest share of the government royalty, 5% overriding royalty to Prospect and 1% overriding royalty to Falcon or TXM related to the Contract Area. Falcon and TXM represent and warrant that there are no other obligations under the EDA which shall apply, or impose any obligation or restriction on ExxonMobil including the provisions of Paragraph 7 Area of Mutual Interest of the EDA"