(225 ILCS 725/23.15) (from Ch. 96 1/2, par. 5452)
Sec. 23.15.
(1) Property rights, leases, contracts and all
other rights and obligations affecting oil and gas rights within the
unit area shall be regarded as amended and modified to the extent necessary to
conform to the provisions and requirements of this Act and to any valid
and applicable plan of unitization or order of the Department made
and adopted pursuant hereto, but otherwise remain in full force
and effect, provided always that plans of unitization, including unit
operating agreements, shall not provide, constitute or be
construed as an exchange or transfer of real property or mineral interests
in the respective separately owned tracts included within the unit.
(2) Nothing contained in this Act shall be construed to require a transfer
to or vesting in the unit of title to the separately owned tracts or
leases within the unit area, other than the right to use and operate the
same to the extent set out in the plan of unitization; nor shall
the unit be regarded as owning the unit production. The unit
production and the proceeds from the sale thereof shall be
owned by the several persons to whom the same is allocated
under the plan of unitization. All property, whether real or
personal, which the unit may in any way acquire, hold or possess, shall not be
acquired, held or possessed by the unit for its own account but shall be so
acquired, held and possessed by the unit for the account of,
and as agent for, the several working interest owners, and shall be the
property of such working interest owners as their interests may appear
under the plan of unitization, subject, however, to the right
of the unit to the possession, management, use or disposal of the
same in the proper conduct of its affairs, and subject to the lien
the unit may have thereon to secure the payment of unit expense.
(3) The amount of the unit production allocated to each
separately owned tract within the unit, and only that amount,
regardless of the well or wells in the unit area from which
it may be produced, and regardless of whether it be more or
less than the amount of production from the well or wells, if any,
or any such separately owned tract, shall for all intents,
uses and purposes be regarded and considered as production
from such separately owned tract, and except as otherwise
authorized in this Act, or in the plan of unitization
approved by the Department, shall be distributed among or
the proceeds thereof paid to the several persons entitled to
share in the production from such separately owned tract
in the same manner, in the same proportions, and upon the same
conditions they would have participated and shared in
the production or proceeds thereof from such separately owned tract
had not said unit been organized, and with the same legal force and effect.
If adequate provisions are made for the receipt thereof, the share
of the unit production allocated to each separately owned tract shall be
delivered in kind to the persons entitled thereto by virtue
of ownership of oil and gas rights therein or by purchase
from such owners subject to the rights of the unit operator to
withhold and sell the same in payment of unit expense pursuant
to the plan of unitization, and subject further to the call of the unit
operator on such portions of the unit production for operating
purposes as may be provided in the plan of unitization.
(4) Operations conducted under and in accordance with the plan
of unitization shall be regarded and considered a fulfillment of and
compliance with all of the provisions, covenants and conditions,
express or implied, of the several oil and gas leases upon lands
included within the unit, or other contracts pertaining to the
development thereof. Wells drilled or operated on any part
of the unit, no matter where located, shall for all purposes be
regarded as wells drilled on each separately owned tract within such unit.
(5) Nothing herein or in any plan of unitization shall be construed as
increasing or decreasing the implied covenants of a lease with
respect to a pool or lands not included within the unit area.
(Source: P.A. 85-1334.)
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