Alabama Lands Excluded from the Operating Agreement For Pre 1989 Agreements

State:
Multi-State
Control #:
US-OG-708
Format:
Word; 
Rich Text
Instant download

Description

This is a paragraph that sets out the Agreement that will be in force should some of the lands covered in the original Agreement no longer be subject to the Agreement, due to the lands being acquired by one or more Parties.

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FAQ

AMI refers to the coming together of parties over a defined territory though it does not necessarily mean that any of the members has already possessed a legal right on part or all of the territory.

Area of Mutual Interest (AMI): a geographic area generally defined by a contract (e.g., Farmout, JOA, JDA or similar agreement) within which two or more persons hold an interest.

An area of mutual interest (AMI) contract describes the geographic area contained in the AMI, the rights of each party (such as the percentage interest allocated to each company), the agreement's term, and how contract provisions are to be implemented.

There is no State requirement in Alabama to have an operating agreement, however, it is still highly recommended to have one in order to state the purpose of the business as well as the ownership interest of the members (if a multi-member LLC).

1. n. [Oil and Gas Business] The right that nonselling participating parties have in a lease, well or unit to proportionately acquire the interest that a participating party proposes to sell to a third party.

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Alabama Lands Excluded from the Operating Agreement For Pre 1989 Agreements