This operating agreement is used when the parties to this Agreement are owners of Oil and Gas Leases and/or Oil and gas Interests in the land identified in Exhibit A to the Agreement, and the parties have reached an agreement to explore and develop these Leases and/or Oil and Gas Interests for the production of Oil and Gas to the extent and as provided for in this Agreement.
Title: Understanding the Arizona Joint Operating Agreement 89 Revised: Types and Detailed Description Introduction: The Arizona Joint Operating Agreement 89 Revised (AZ JOB 89 Revised) is a legally binding document that establishes the terms and conditions for joint oil and gas exploration, development, and production operations among multiple parties in the state of Arizona. This article aims to provide a comprehensive understanding of this agreement, covering its purpose, key elements, and potential types within the Arizona jurisdiction. Keywords: Arizona Joint Operating Agreement 89 Revised, legal document, joint oil and gas exploration, development and production operations, multiple parties, state of Arizona 1. Purpose of Arizona Joint Operating Agreement 89 Revised: The AZ JOB 89 Revised serves as a framework for collaboration and risk-sharing between different stakeholders involved in oil and gas operations in Arizona. It outlines the rights, obligations, and responsibilities of each party, ensuring efficient and fair cooperation while minimizing conflicts. Keywords: collaboration, risk-sharing, stakeholders, oil and gas operations, rights, obligations, responsibilities, cooperation, conflicts 2. Key Elements of the Arizona Joint Operating Agreement 89 Revised: a. Ownership and Interests: The agreement specifies the respective interests and ownership percentages of all participating parties, facilitating a clear understanding of each party's share of costs, revenues, and production. b. Drilling and Development Obligations: It outlines the obligations and procedures related to drilling, testing, development, and operation of oil and gas wells within defined areas. c. Expense Sharing and Accounting: It stipulates how the parties will share costs, including exploration, production, facility construction, maintenance, and other related expenses. The document also guides the accounting and reporting procedures. d. Governing Committee: The agreement establishes a governing committee or operating committee responsible for making operational decisions, approving budgets, and resolving disputes. e. Title Opinions and Leasing: It addresses leasing issues, title examination, opinion approval processes, and potential remedies in case of title defects. f. Default, Withdrawal, and Termination: The agreement outlines the consequences, rights, and procedures if any party defaults, withdraws, or terminates the agreement. Keywords: ownership, interests, drilling, development obligations, expense sharing, accounting, governing committee, title opinions, leasing, default, withdrawal, termination 3. Types of Arizona Joint Operating Agreement 89 Revised: a. Standard Arizona Joint Operating Agreement 89 Revised: This is the most common type used in Arizona. It comprises the essential provisions mentioned above, providing a balanced and comprehensive framework for joint operations. b. Modified Joint Operating Agreement 89 Revised: Parties may modify the standard agreement to suit their specific needs and circumstances, subject to legal compliance and mutual agreement. c. Area-Specific Joint Operating Agreement: Sometimes, agreements may be tailored to apply to a particular area or field within Arizona, incorporating specific local regulations, requirements, and unique geological, geophysical, or operational conditions. Keywords: Standard Joint Operating Agreement, modified agreement, area-specific agreement, local regulations, requirements, geological conditions, geophysical conditions, operational conditions Conclusion: The Arizona Joint Operating Agreement 89 Revised facilitates collaboration, risk-sharing, and operational efficiency in oil and gas exploration, development, and production activities within Arizona. Understanding its purpose, key elements, and potential variations enables parties to enter into agreements that suit their specific needs, promoting successful ventures in the state's energy sector. Disclaimer: This article is for informational purposes only and should not be considered legal advice. Parties entering into joint operating agreements should consult legal professionals to ensure compliance and protect their legal rights and interests.
