The Joint Operating Agreement (JOA) in the oil and gas industry is an underlying contractual framework of a joint venture. The JOA is a contract whereby two or more parties agree to assume a common mission to explore and exploit an oil and gas zone. The contracting parties may, on the whole, be classified as economic and non-operator operators. There are many other special agreements that are used for oil and gas exploration and development. Common enterprise agreements are popular because they offer a way to spread the risk of exploration and drilling. However, they can quickly become complex and all parties involved should proceed with due diligence before signing. You need to understand what the agreement means to you. The main risk of entering into a joint enterprise agreement occurs when a co-tenant does not fully understand the agreement. An example from the Landman blog provides an example of what can happen if a co-tenant has not performed due diligence before signing. We invented company names to facilitate the prosecution. Section 6.7 Amendments.
This agreement can only be amended or amended by an agreement signed by all parties, expressly called an amendment or amendment. 5. Administration and pumps. The operator is entitled to collect a monthly administration and pumping fee of $500.00 for each partnership. The monthly fee is revised and can be adjusted for inflation at the end of the first three years of this agreement. As the OBO case shows, many questions may arise when parties choose to hire a non-proprietary operator. As a result, parties to the JOA who wish to designate a non-owner as an operator often explicitly address customary provisions contained in the operating contract or by separate written agreements. Some enterprise agreements contain.
B, in their consumption provisions, a paragraph which expressly gave the designated operator the right to delegate duties to a third-party operator as an independent contractor and to take care of the rights and obligations of non-operators with respect to that operator. As an independent contractor, you need to make sure that you are hiring the right subcontractor for the position, which means that you then need to refresh your skills. You can consider these different approaches to work as an independent contractor to refresh your knowledge and ensure that you hire the right subcontractor who works well with you depending on how you do your job. PBJV (owner of 81.4% of the units) was designated as the operator of the unit, but PBJV then entered into a contract with Apache to perform a number of these tasks, including the obligation to submit JBS on behalf of PBJV. OBO (a minority contractor), refused to pay a number of MOC and Apache filed a complaint. OBO filed a counter-action stating that Apache was not a candidate, as the API Unit Operating Agreement states that the unit operator must be an operational interest holder. The Court of Appeals of the 14th Court of Houston stated that it was indisputable that a single holder of an operational interest could be designated as a single operator under the API Unit Operating Agreement.