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OPERATING AGREEMENTS FORMS PROGRAM

The Operating Agreements Forms Program Contains: 

 

The Joint Operating Agreement forms are patterned after the AAPL 1982 and 1989 preprinted Model Form Agreements.  The differences in the forms in this Program and Model Forms are summarized below.

There is a separate Section of forms of Exhibits and Other Provisions that are often added to Joint Operating Agreements.
1.    The JOA 82 Revised Agreement.  This Agreement is patterned after the 1982 AAPL Model Form Operating Agreement.  Revisions have been made to eliminate much of the legalese in the form.

2.    The JOA 89 Revised Agreement.  This Agreement is patterned after the 1989 AAPL Model Form Agreement.  Revisions that have been made and are incorporated into this form consist of:  

(a)    Eliminating much of the legalese.


(b)    Identifying, by name, the cross referenced article numbers that are used throughout the Agreement form.  The 89 Revised Agreement is substantially longer (more text) than the 82 Revised Agreement.  Throughout the Agreement there are repeated references to numbered articles and provisions in the Agreement.  


For those not familiar with this form of Agreement, the reference to another provision, by article or paragraph number alone, results in a continuous flipping through the Agreement to identify the provision being referenced.  The 89 Revised Agreement form has incorporated the name of each referenced article or paragraph following a cross reference.


3.    The JOA 89-03 Revised Agreement.  This form includes the revisions and additions contained in the JOA ’89 Revised Agreement form, and includes several substantive additions.  These additions are based on suggestions and recommendations concerning the 1989 Model Form Agreement, that have been made by landmen and oil and gas lawyers, since that form became available.  

 

These additions and revisions include:

  1. Article V.A. (Designation and Responsibilities of Operator).  This provision has been expanded to include a more detailed description of the duties of the Operator.
  2. Article V.B. (Resignation and Removal of Operator and Selection of Successor) has been expanded to include three (3) options for removal of an Operator:
     1.  Removal for Cause.
     2.  Removal Without Cause.
     3.  Change for Economic Reasons.
  3. Article VI.A. (Drilling and Development; Initial Well) has been expanded to include options for a vertical and horizontal well.  The horizontal well provision contains three (3) options.
  4. Article VI.B.2. (Drilling and Development; Subsequent Operations; Operations by Less than all Parties).  The Agreement provides, in great detail, provisions dealing with non consent elections, and how nonconsenting interests are dealt with.  The 89-03 Agreement form includes an optional alternative to the provisions of Article VI.B.2., providing for each party to the Agreement to be up or out in each well drilled on the Contract Area.
  5. Article VII.A. (Expenditures and Liabilities of Parties; Liabilities of Parties), specifies that a fiduciary and confidential relationship does not exist between the parties to the Agreement.
  6. Article VIII. (Acquisition, Maintenance, or Transfer of Interest) has an optional Area of Mutual Interest Provision.
  7. The Maintenance of Uniform Interest Provision in Article VIII, in this form, provides that the party creating the need for separate measurement facilities shall alone bear that cost.  In addition, there is a provision that allows an operator to require a Trustee be appointed if any party’s interest is divided (assigned) to four (4) or more co-owners, and the Trustee shall be responsible for all those parties obligations under the Agreement.
  8. There is no preferential right to purchase provision in this Agreement form.
  9. Article XV.B. (Successor and Assigns) includes language providing for the election of a Successor Operator if the Operator sells all its interest in the Contract Area.

 

The Operating Agreement forms are not fill in the blank forms.  To make effective use of the forms (particularly the 89-03 Revised form) will require the user to closely review all the terms and provisions of the Agreement.  This has been made easier by providing the forms in 12 pitch font.  As with all forms in the Program, in addition to making text edits and revisions, the font size and format may be changed when creating a finalized document to meet a particular transaction need.

All the Operating Agreements are patterned after agreements encountered in actual transactions.
In addition to the acknowledgment and Other Provisions forms, the Program has different forms of Agreements and documents pertaining to Operations.


About the Index of and Samples of forms in the program

    1. The forms in the Index, as listed, below, is in the same order as the forms appear in the Program.  They are divided into topical Sections, with all the forms in each Section listed alphabetically.
    2. There are no sample forms for Acknowledgments, but Acknowledgement forms for each state listed are included in the Program.
    3. To view a sample of the form (the first page only), click on the title of the form.  As stated, only the first page of each form is included in the sample.

    OPERATING AGREEMENT FORMS MASTER INDEX - Click on any of the Links below to view a sample of the form.