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.
Kansas Joint Operating Agreement 89 Revised (JOB 89 Revised) is a legal contract commonly used in the oil and gas industry in the state of Kansas. It outlines the terms and conditions under which multiple parties agree to collaborate and jointly operate oil and gas wells or leasehold interests. The primary purpose of JOB 89 Revised is to ensure the efficient and effective development and production of oil and gas resources by minimizing conflicts and maximizing cooperation among the parties involved. The agreement provides a framework for decision-making, cost-sharing, and risk mitigation. Some key features of JOB 89 Revised include: 1. Parties: The agreement identifies and binds all the participating parties, including the operator, who is responsible for managing daily operations and implementing the project's objectives. Other parties typically include non-operating working interest owners, royalty owners, and overriding royalty interest owners. 2. Objectives: JOB 89 Revised clearly states the objectives of the joint operations, which commonly include exploring, drilling, completing, producing, and marketing oil and gas resources within a defined geographic area or designated drilling spacing units. 3. Accounting and Billing: The agreement establishes a system for accounting and billing to ensure accurate tracking of costs and revenues associated with the joint operations. This includes determining the proportionate share of expenses to be borne by each party based on their working interests. 4. Decision-making: JOB 89 Revised outlines the decision-making process for determining drilling locations, well spacing, production techniques, and other important operational aspects. Typically, decisions are made by the operator but may require consent or approval from other parties, depending on the significance of the decision. 5. Default and Termination: The agreement includes provisions for handling defaults, such as non-payment of expenses or failure to comply with the terms. It also defines procedures for terminating the agreement, whether by mutual agreement or due to specific triggers or breaches. There are no official variations or identified types of JOB 89 Revised. However, it is essential to note that specific provisions within the agreement may vary depending on the parties involved, their specific interests, and any negotiated amendments or additions. In summary, Kansas Joint Operating Agreement 89 Revised is a crucial legal document that allows multiple parties to collaborate and operate oil and gas wells or leasehold interests efficiently. It provides a framework for decision-making, cost-sharing, and risk mitigation, ensuring the smooth development and production of oil and gas resources in Kansas.
