Geologic Factors In Metal Mining Mergers And Unitizations

The concept of "unitization" comes from the petroleum industry. Of this, Campbell says: "Unitization is the process whereby the owners of adjoining properties pool their reserves and form a single unit for the operation of the properties. The revenue from operation of this unit is then divided in accordance with the basis established in the unit agreement. "The purpose of such an agreement is to produce the reserves more efficiently and thus to increase the profit to every participant."'