Transfer of title to tracts and leases not required; proceeds and production are income of owners.

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1. This chapter does not require a transfer to or vesting in the unit of title to the separately owned tracts or leases within the unit area, other than the right to use and operate them to the extent set out in the plan of unitization; nor may the unit be regarded as owning the unit production. The unit production and the proceeds from the sale thereof are owned by the several persons to whom they are allocated under the plan of unitization.

2. Neither the unit production or proceeds from the sale thereof, nor the other receipts may be treated or taxed as income or profits of the unit; but instead, all such receipts are the income of the several persons to whom or to whose credit they are payable under the plan of unitization. To the extent the unit may receive or disburse the receipts it shall only do so as a common administrative agent of the persons to whom they are payable.

(Added to NRS by 1983, 2076)


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