Illinois Exhibit E to Operating Agreement Gas Balancing Agreement - Form 1

State:
Multi-State
Control #:
US-OG-745
Format:
Word; 
Rich Text
Instant download

Description

This operating agreement exhibit is used in the event any party is not able to take its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which is unable at any time while the Operating Agreement is in effect to take the share of gas attributable to the interest of the party.

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  • Preview Exhibit E to Operating Agreement Gas Balancing Agreement - Form 1
  • Preview Exhibit E to Operating Agreement Gas Balancing Agreement - Form 1

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FAQ

A joint operating agreement is a legal document that outlines the relationship between two or more businesses who jointly operate a business. When one company partners with another, they are typically signing this type of contract to ensure their business interests are protected.

Joint Operating Companies (JOCs) are partnerships between International Oil Companies (IOCs) and the government, established upon a commercial discovery ? based on the applied fiscal regime ? in order to start operations.

Joint operating agreements are contractual agreements between one party identified as the operator and at least one other party known as a non-operator which requires the operator to drill the initial obligatory well, and the non-operator to pay its proportionate share of the operating expenses.

The Joint Operating Agreement (JOA) in oil and gas industry is an underlying contractual framework of a Joint Venture (JV). The JOA is a contract where two or more parties agree to undertake a common task to explore and exploit an area for hydrocarbons.

An operating agreement (bylaws) is an internal document that defines how the business owners professionally relate to one another. The articles of incorporation (certificate of formation) is a public document that legally establishes a business as a corporation.

The JOA serves several purposes, including identifying the property interests of the parties in the mineral lease, designating the party that is to act as operator, and setting forth the method for sharing expenses and for the allocation of liability for the oil and gas exploration and production operations.

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Illinois Exhibit E to Operating Agreement Gas Balancing Agreement - Form 1