O-1945-315 - Laserfiche WebLink

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lease. or drilling contracts from tne owners of all 101;s, blockEI o.or parcele of land included Gn or emb>>aced wi tnln a drilling blctc]c, a permit shall be iS8ued to sucn applicant, hi. hetts, 8uccessox's . and assigns only upon the following oonditions ~n addition to St~~ other conditions as may be provided in otber sections of this ol'd- inance, to.wi t: The applicant shall be free to enter into 8uo11 con- traots and agreements with the owners of such other lote, blocks or traots as he may be able to make. If agreements are not reaohed with all owners of lots, tracts and blocks within tne drilling blook, then tne owner or owners of any given lot or lots, blook or blooks, tract or treats ahall bave the right to~tioo by notioe to the permitee given in writing within thirty (30) d.,s~er the i8suanc. of a permit for a well on the drilling block involved, ei ther (l) to treat his interest as a working interest and contr:Lbulte towar4 tne aotual oost and expense of drilling, completing and ope,rating said well with all neoessary appurtenances ourrently e.l.ob. month in the proportion t~at tne number of .quare :teet in area o",'n. by him in the drilling block, and th.ereupon receive the same pro.. portion of tne oil produced and saved from such well or i t8 ValUE. at tne well at the option of the permittee and a like proportion of natural gas produoed, saved and utilized or 801d, or the ValUEI of same at the well at the option of the. permi tt..; or (2) to trElat his interest as a royalty interest and reoeive, d'livered free 01~ cost in the pipe line to which the well may be connected, a snarel ot 811 oil produced and saved from such well equal to one-eighth ~(~) of the proportion of the whole quantity of oil so prOduced and saved that the number of square feet in the area owned by him be~s to the number of square feet in such. drilling blook, or at the election of permittee to reoeive suoh proportion of the v8l~e at the well of the oil 80 produced, and to receive a like pro- porti on of the gas and oasinghead gas produoed, saved and utilizel:i or sold, ar at the eleotion of permittee the value at the well of Blch proportion of gas or casinghead gas prOduced, saved and uti- lized or sold. If any owner does not exercise the right and optic) -1- e e of ,,' ...... ....- / e: ,_/" .} . ./ ..--.