Michigan Laws 324.61719 – Lessee’s obligation; liability
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Terms Used In Michigan Laws 324.61719
- Lessee: means lessees under oil and gas leases and also the owners of unleased lands or mineral rights having the right to develop them for oil and gas. See Michigan Laws 324.61701
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Unit expense: means any and all cost, expense, or indebtedness incurred by the unit in the establishment of its organization or incurred in the conduct and management of its affairs or the operations conducted by it. See Michigan Laws 324.61701
The obligation or liability of each lessee in the several separately owned tracts for the payment of unit expense at all times is several and not joint or collective and a lessee of the oil or gas rights in the separately owned tract is not chargeable with, obligated, or liable, directly or indirectly, for more than the amount apportioned, assessed, or otherwise charged to his or her interest in the separately owned tract pursuant to the plan of unitization.