In the interest of the public welfare and to promote conversation and increase the ultimate recovery of oil, gas, and associated minerals from the Unit and to protect the rights of the owners of interest in the lands included in the Unit, it is deemed necessary and desirable to enter into this Agreement, in conformity with (Applicable Statutory reference), to unitize the Oil and Gas Rights in and to the Unitized Formation in order to conduct a secondary recovery, pressure maintenance, or other recovery program as provided for in this Agreement.
The New York Unit Agreement, also known as the NYU, is a legal document that governs the creation, ownership, and management of cooperative housing units in New York City. It outlines the rights, responsibilities, and obligations of both the shareholders and the cooperative corporation. Under the NYU, a cooperative housing unit is divided into shares, with each shareholder holding a proprietary lease for their unit. Shareholders are not actual owners of the unit itself but are considered owners of shares in the cooperative corporation, which owns the entire building. The agreement sets forth the guidelines for the allocation and transfer of shares, as well as the process for admission of new shareholders. It establishes the criteria for determining the value of shares, which is typically based on the size and location of the unit within the cooperative. One significant aspect of the NYU is the concept of "mutual exclusivity." This means that a shareholder can only be party to one New York Unit Agreement at a time. Therefore, if a shareholder wishes to purchase another cooperative unit, they must first relinquish their shares in the existing cooperative. Different types of New York Unit Agreements include: 1. Market Rate Cooperatives: These are cooperative buildings where the purchase and sale of shares are conducted at market prices determined by prevailing property values in the area. There are no income restrictions for potential shareholders in market rate cooperatives. 2. Limited Equity Cooperatives: In these cooperative buildings, the prices of shares are set at more affordable rates to promote homeownership among low and moderate-income individuals and families. The NYU for limited equity cooperatives often includes income restrictions for prospective shareholders to ensure affordability. 3. Housing Development Fund Corporations (HDF Cs): HDF Cs are limited equity cooperatives that have been converted from abandoned or deteriorated rental buildings. These cooperatives often receive government subsidies or grants to facilitate the conversion and promote affordable homeownership. Overall, the New York Unit Agreement plays a crucial role in providing a legal framework for cooperative housing in New York City. It protects the interests of both shareholders and the cooperative corporation, ensuring fair and transparent practices in the creation and management of cooperative units.
