27-664. Cooperative development agreements; unitization

208 words·~1 min read·/az/title-27/27-664

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Whenever the commission finds that it is in the interest of the protection of the geothermal resources of this state from unreasonable waste, the lessors, lessees, operators, owners or other persons holding or controlling royalty or other interest in separate properties within the same productive or prospectively productive geothermal area may, with the approval of the commission, enter into agreement for the purpose of bringing about the cooperation, development and operation of all or a portion of the geothermal resources area as a unit, or for the purpose of fixing the time, location and manner of drilling and operating of wells for the production of geothermal resources within such area or portion thereof.

Any such agreement shall bind the successors and assigns of the parties thereto and shall be enforceable by the parties thereto by an action for a specific performance. No such agreement, when approved by the commission, shall be held to violate any of the statutes of this state prohibiting monopolies or acts, arrangements, agreements, contracts, combinations or conspiracies in restraint of trade or commerce. 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 section.