Nevada Code § 522.0858

Expenses of unit: Lien for amount assessed; persons primarily responsible for payment; payment by persons not responsible; payment to royalty owners free of lien and expenses
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1. Subject to such reasonable limitations
as may be set out in the plan of unitization, the unit has a first and prior
lien upon the leasehold estate and all other oil and gas rights (exclusive of a
one-eighth landowners royalty interest) in and to each separately owned tract,
the interest of the owners thereof in and to the unit production and all
equipment in the possession of the unit, to secure the payment of the amount of
the unit expense charged to and assessed against the separately owned tract.
2. The interest of the lessee or other
persons who by lease, contract or otherwise are obligated or responsible for
the cost and expense of developing and operating a separately owned tract for
oil and gas in the absence of unitization, is primarily responsible for and
charged with any assessment for unit expense made against the tract and resort
may be had to overriding royalties, oil and gas payments, royalty interests in
excess of one-eighth of the production, or other interests which otherwise are
not chargeable with that cost, only if the owner of interest primarily
responsible fails to pay the assessment of the production to the credit
thereof, or production is insufficient for that purpose.
3. If the owner of any royalty interest,
overriding royalty, oil or gas payment, or any other interest which under the
plan of unitization is not primarily responsible therefor pays in whole or in
part the amount of an assessment for unit expense for the purpose of protecting
that interest, or the amount of the assessment in whole or in part is deducted
from the unit production to the credit of that interest, the owner thereof is
to the extent of the payment or deduction subrogated to all the rights of the unit
with respect to the interest or interests primarily responsible for the
assessment.
4. A one-eighth part of the unit
production allocated to each separately owned tract must in all events be
regarded as royalty to be distributed to and among, or the proceeds thereof
paid to, the royalty owners free and clear of all unit expense and free of any
lien therefor.

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