Fillable North Dakota Indian Communitization Agreement (Page 2 of 4) in pdf

2. Attached hereto, and made a part of this agreement for all purposes, is Exhibit A

displaying the communitized area and Exhibit B designating the operator of the

communitized area and showing the acreage, percentage and ownership of oil and gas

interests in all lands within the communitized area, and the authorization, if any, for

communitizing or pooling any patented or fee lands within the communitized area.

3. All matters of operation shall be governed by the operator under and pursuant to

the terms and provisions of this agreement. A successor operator may be designated

by the owners of the working interest in the communitized area, and four (4)

executed copies of a designation of successor operator shall be filed with the

Authorized Officer.

4. Operator shall furnish the Secretary of the Interior, or his authorized representative,

with a log and history of any well drilled on the communitized area, monthly reports of

operations, statements of oil and gas sales and royalties and such other reports as are

deemed necessary to compute monthly the royalty due the United States, as specified in

the applicable oil and gas regulations.

5. The communitized area shall be developed and operated as an entirety, with the

understanding and agreement between the parties hereto that all communitized

substances produced therefrom shall be allocated among the leaseholds comprising

said area in the proportion that the acreage interest of each leasehold bears to the

entire acreage interest committed to this agreement.

All proceeds, 8/8ths, attributed to unleased Indian, Federal, State or fee land included

within the CA area are to be placed in an interest earning escrow or trust account by

the designated operator until the land is leased or ownership is established.

6. The royalties payable on communitized substances allocated to the individual leases

comprising the communitized area and the rentals provided for in said leases shall be

determined and paid on the basis prescribed in each of the individual leases. Payments of

rentals under the terms of leases subject to this agreement shall not be affected by this

agreement except as provided for under the terms and provisions of said leases or as may

herein be otherwise provided. Except as herein modified and changed, the oil and gas

leases subject to this agreement shall remain in full force and effect as originally made

and issued.

7. There shall be no obligation on the lessees to offset any well or wells completed in the

same formation as covered by this agreement on separate component tracts into which

the communitized area is now or may hereafter be divided, nor shall any lessee be

required to measure separately communitized substances by reason of the diverse

ownership thereof, but the lessees hereto shall not be released from their obligation to

protect said communitized area from drainage of communitized substances by a well or

wells which may be drilled offsetting said area.

The commencement, completion, continued operation, or production of a well or wells

for communitized substances on the communitized area shall be construed and

considered as the commencement, completion, continued operation, or production on

each and all of the lands within and comprising said communitized area, and operations

or production pursuant to this agreement shall be deemed to be operations or production

as to each lease committed hereto.

ND INDIAN CA

revised 10/6/2014

North Dakota Indian Communitization Agreement Page 2

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