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 lands identified in Exhibit A to the Agreement. The Parties have reached an agreement to explore and develop the Leases and/or Oil and Gas Interests for the production of Oil and Gas to the extent and as provided for in this Agreement.
Colorado Joint Operating Agreement 89-03 Revised, also known as JOB 89-03 Revised, is a legal document that governs the joint operations and management of oil and gas wells in Colorado. This agreement is designed to establish a systematic framework for the collaboration and coordination between multiple operators working on a shared project, promoting efficiency, reducing costs, and minimizing conflicts. The Colorado Joint Operating Agreement 89-03 Revised lays out the terms and conditions related to exploration, development, production, and abandonment of oil and gas reserves within a designated area in Colorado. It governs the activities of all participating stakeholders, including operators, non-operators, working interest owners, and lessees. Key provisions included in the agreement are: 1. Purpose and Scope: It clearly defines the objectives of the joint operations, specifying the geographical extent and the target reservoirs or formations. 2. Rights and Obligations: Each participating party's rights, responsibilities, and obligations are outlined. This includes detailing the roles of the operator and non-operators, financial responsibilities, and decision-making processes. 3. Voting and Decision-making: The agreement establishes the method of voting, usually based on working interests, to make important decisions regarding expenditures, exploration plans, drilling operations, and asset management. 4. Cost Apportionment: The JOB 89-03 Revised provides a mechanism to allocate costs associated with drilling, completion, operating, and maintaining the shared operations. Typically, costs are divided among the parties based on their respective working interests. 5. Default and Termination: The agreement specifies the consequences and remedies in case of default by any party, such as default interest, termination of rights, or the appointment of a replacement operator. 6. Confidentiality and Access to Information: It addresses the disclosure and protection of confidential data and information shared between the parties for the purpose of joint operations. 7. Indemnification and Insurance: The agreement outlines the insurance requirements and indemnification provisions, protecting parties from liabilities arising out of the joint operations. Different types of Colorado Joint Operating Agreement 89-03 Revised may exist, tailored for specific projects or regions within Colorado. These agreements could have minor variations according to the particular needs and circumstances of the oil and gas operators involved. However, the core principles and provisions remain similar across these agreements, focusing on efficient collaboration, addressing legal concerns, and ensuring the smooth execution of joint operations in compliance with Colorado state regulations.
