Drilling Unit

Drilling Unit. Means the area within the surface boundaries established or prescribed by field rules or special order of the applicable regulatory authority; e.g., the spacing unit, unit for production, proration unit, or participating area. In the absence of any unit established or prescribed by field rules or special order of the applicable regulatory authority, and solely for the purposes of this Agreement, "Drilling Unit" shall also mean a 160 acre hypothetical unit if an earning well is completed as an... oil well, or a 640 acre hypothetical unit if an earning well is completed as a gas well. Any hypothetical unit is to be designated by Farmor. View More