All leases and other forms of holding in each block shall be consolidated and unitized to the extent that the holder of a lease in such block, who is not a permittee under this chapter, shall have the enforceable right and privilege of paying to the permittee, within ten days from the date of issuance of such permit, his or her share and part of the expense of drilling, including, but not limited to, the cost of the permit and bond and the actual cost of drilling such well, or of making a good and sufficient bond to do so. Thereupon he or she shall be permitted to participate in the seven-eighths working interest therein to the extent that his or her holding area within such block bears to the entire block. If there is any unleased part of such block, the owner of the fee title therein shall have the same rights as if he or she were the owner of such lease.
An owner of real estate in any block, whether or not such owner has made a so-called oil and/or gas lease thereof to another person, shall be entitled to receive as royalty out of a well drilled on such block such proportion of the average royalty, which is not less than one-eighth of the total production of the well, as the area of his or her land bears to the whole area of such block. It shall be a condition of a permit issued under this chapter, whether or not stated therein, that the permittee and his or her heirs, executors, administrators, successors, legal representatives and assigns shall deliver such royalty to the credit of such owner within such block, free of cost, in the pipeline to which the well may be connected and shall pay such owner a like share, as royalty, of the sums provided to be paid to the lessor in such block by reason of the sale or utilization of gas, gasoline and casinghead gas from such well, to the end that an owner who is not a lessor of land in such block shall have the same rights, shares and royalties in the products of such well, not less than one-eighth, as the average amount stipulated and set forth in the drilling lease or contract under the terms of which such well was drilled and is being operated.
(Ord. 286. Passed 6-6-60.)