A more thorough explanation:

Definition: A unitization clause is a provision in an oil-and-gas lease that allows the lessee to combine or unitize the leased premises with other properties for enhanced-recovery operations.

Example: Let's say a company leases a piece of land for oil and gas exploration. The unitization clause in the lease allows the company to combine the leased land with other nearby properties to create a larger unit for drilling and production purposes. This can be beneficial for enhanced-recovery operations, as it allows for more efficient use of resources and can increase overall production.

Another example: A unitization clause may also allow for the pooling of interests among multiple leaseholders in a particular area. This means that each leaseholder would have a share in the production from the unitized area, based on the size of their leasehold interest.

Explanation: The unitization clause is an important provision in oil-and-gas leases, as it allows for more efficient and effective exploration and production operations. By combining multiple properties into a larger unit, companies can better utilize resources and increase overall production. The pooling of interests among leaseholders also ensures that everyone benefits from the production of the unitized area, based on their respective leasehold interests.