Please translate this clause in our O&G lease addendum? I think I comprehend a pooled unit, but not a production unit.
• Item 15. “After the expiration of … continuous drilling program … this … mineral lease shall be construed to be a separate lease as to each separate production unit”.
• Item 19. Pooling, seems straightforward, eight different terms, uses term “pooled unit”. (Our recorded pooled unit is 636 acres).
A previous addendum term set the size of a horizontal “production unit” at (0.064 X drainhole length). The initial well is 10,000’ horizontal.