NRS 522.0834 Order for compulsory unitization: Consent of certain percentage of owners required; hearings; revocation of order.
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NRS 522.0834 Order for compulsory unitization: Consent of certain percentage of owners required; hearings; revocation of order.
1. No order of the Division creating a unit and prescribing the plan of unitization applicable thereto becomes effective unless:
(a)The plan of unitization has been signed or in writing ratified, or approved by the lessees of record of not less than 62.5 percent of the unit area affected thereby and by the owners of record or not less than 62.5 percent (exclusive of royalty interests owned by lessees or by subsidiaries of any lessee) of the normal one-eighth landowners’ royalty interest in and to the unit area; and
(b)The Division has made a finding either in the order creating the unit or in a supplemental order that the plan of unitization has been so signed, ratified or approved by lessees and royalty owners owning the required percentage interest in and to the unit area.
2. Where the plan of unitization has not been so signed, ratified or approved by the lessees and royalty owners owning the required percentage interest in and to the unit area at the time the order creating the unit is made, the Division shall, upon petition and notice, hold such additional and supplemental hearings as may be requested or required to determine if and when the plan of unitization has been so signed, ratified or approved by lessees and royalty owners owning the required percentage interest in and to the unit area and shall, in respect to the hearing, make and enter a finding of its determination in that regard.
If lessees and royalty owners, or either, owning the required percentage interest in and to the unit area have not so signed, ratified or approved the plan of unitization within a period of 6 months after the date on which the order creating the unit is made, the order creating the unit ceases to be of further effect and must be revoked by the Division.