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.
Indiana Joint Operating Agreement 89 Revised, commonly known as the Indiana JOB 89 Revised, is a legal document that outlines the terms and conditions for joint operations between oil and gas companies in the state of Indiana. This agreement sets forth the guidelines and responsibilities for the exploration, development, production, and sharing of revenues from oil and gas resources within a specific geographic area. The Indiana JOB 89 Revised serves as a vital tool for oil and gas companies, enabling them to collaborate and pool their resources effectively while minimizing risks and maximizing profits. This agreement ensures that participating parties adhere to a standardized framework for decision-making, profit sharing, and liability allocation. Key features of the Indiana Joint Operating Agreement 89 Revised include: 1. Geographic Scope: This agreement delineates the precise geographical boundaries within which the joint operations will occur. These boundaries are often defined by specific oil and gas fields, formations, or play areas. 2. Participation and Obligations: The agreement outlines the rights and obligations of each participating party, including their respective working interests, voting powers, and financial responsibilities. It specifies the requirements for drilling, testing, operating, and maintaining wells and related infrastructure. 3. Decision-making Process: The Indiana JOB 89 Revised establishes a decision-making framework that enables all parties to have a say in crucial matters concerning operations, such as drilling locations, work programs, and budgets. It typically requires the consent of a certain percentage of working interest owners before implementing significant actions. 4. Cost Sharing and Reimbursement: The agreement defines how the costs associated with joint operations are shared among the participating parties. It lays out the procedures for making financial contributions, including provisions for carrying costs, priority of expenditures, and reimbursement mechanisms. 5. Profit and Loss Allocation: The Indiana JOB 89 Revised governs the distribution of revenues generated from oil and gas production among the adventurers, specifying the method for calculating and allocating profits and losses. Different types of Indiana Joint Operating Agreement 89 Revised may exist based on specific modifications or additions made by companies involved. These variations could include adjusted provisions related to cost allocation, decision-making thresholds, working interests, or preference for certain operating procedures. However, the fundamental purpose and structure of the agreement remain consistent across the different types. In summary, the Indiana Joint Operating Agreement 89 Revised is a vital legal instrument for oil and gas companies operating in Indiana. It establishes a framework for collaboration, decision-making, cost sharing, and profit allocation, ensuring efficient and accountable joint operations.
