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.
Title: Exploring Idaho Joint Operating Agreement 89-03 Revised: A Comprehensive Overview Introduction: The Idaho Joint Operating Agreement 89-03 Revised refers to a legal document that serves as a collaborative framework between two or more entities, typically oil and gas companies, aiming to jointly explore, develop, and operate oil and gas properties within the state of Idaho. This detailed description aims to shed light on this agreement by exploring its key aspects, purpose, and the different types of Idaho Joint Operating Agreement 89-03 Revised. Key Aspects of Idaho Joint Operating Agreement 89-03 Revised: 1. Collaboration: The Idaho Joint Operating Agreement 89-03 Revised promotes collaboration between participating parties by establishing rights, obligations, and responsibilities necessary for collectively managing exploration, development, and production activities. 2. Operations Management: It lays out operational procedures from well drilling and production to facility construction and maintenance, ensuring efficient and effective management of oil and gas operations in accordance with state regulations. 3. Cost Sharing: The agreement outlines financial obligations, cost-sharing mechanisms, and procedures for sharing expenses related to exploration, development, production, and other joint activities in a manner agreed upon by the participating parties. 4. Profits and Losses: The document establishes how the parties share profits generated from oil and gas production, as well as how any incurred losses will be allocated among the participants, typically in proportion to their ownership interests. 5. Ownership Interests: The agreement clearly defines the ownership interests of each participant in the joint venture, including details of initial contributions, subsequent acquisitions, and possible dilution of interests over time. Different Types of Idaho Joint Operating Agreement 89-03 Revised: 1. Exploration Agreement: This type of agreement focuses primarily on jointly exploring oil and gas reserves within a specific area of Idaho. It outlines the roles and responsibilities of the participants during the exploration phase, including seismic surveys, data interpretation, and evaluation of exploration prospects. 2. Development Agreement: Once exploration has identified commercially viable reserves, a development agreement is generally established. It dictates how the participants will jointly develop and exploit these reserves, covering aspects such as drilling, reservoir engineering, and infrastructure construction. 3. Production Agreement: This agreement governs the production and operation phase when oil and gas extraction begins. It outlines procedural guidelines, safety regulations, and maintenance requirements necessary for sustained production and compliance with environmental standards. Conclusion: The Idaho Joint Operating Agreement 89-03 Revised serves as a crucial legal framework facilitating collaboration and cost-sharing among entities involved in oil and gas exploration and production in Idaho. By establishing mutual obligations, rights, and responsibilities, this agreement ensures efficient coordination and enables participants to collectively benefit from their joint efforts. Tailored to different stages of oil and gas activities, exploration, development, and production agreements collectively contribute to the sustainable growth of Idaho's energy sector while adhering to legal and environmental obligations.
