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.
Montana Joint Operating Agreement 89-03 Revised is a legally binding contract entered into by two or more parties interested in jointly exploring, developing, and operating oil and gas properties in the state of Montana, United States. This agreement outlines the terms and conditions to govern the relationship between the parties involved, ensuring a fair and efficient oil and gas operation. Key Features: 1. Exploration and Development: The Montana Joint Operating Agreement 89-03 Revised provides a framework for the exploration, development, and production of oil and gas reserves in Montana. It outlines the obligations and responsibilities of each party involved in the joint venture. 2. Party Definitions: The agreement defines the roles of various parties, including the operator and non-operators. The operator is responsible for the day-to-day management, decision-making, and execution of operations, while non-operators have the right to participate and share in the costs and benefits of the venture. 3. Area of Mutual Interest (AMI): The AMI is an important provision in the agreement, which identifies the specific geographic area where the joint venture will focus its operations. This helps in defining the scope of operations and ensuring that all parties have equal access to potential oil and gas reserves within the defined region. 4. Cost and Expense Allocation: The Montana Joint Operating Agreement 89-03 Revised establishes a mechanism for sharing costs and expenses incurred during exploration, drilling, production, and other operational activities. It outlines the percentage interests of each party and determines their respective financial obligations. 5. Decision-Making Processes: The agreement lays out the decision-making process, including the voting rights and procedures for resolving disputes among the parties. It ensures that major decisions, such as the approval of drilling plans or significant expenditures, are made collectively, considering the interests of all joint venture participants. Different Types of Montana Joint Operating Agreement 89-03 Revised: There may be various types or revisions of the Montana Joint Operating Agreement 89-03 Revised tailored to specific projects or circumstances. Some possible variations could include: 1. Production Sharing Agreement (PSA): A variation of the Montana Joint Operating Agreement 89-03 Revised could incorporate production sharing provisions, where parties share in the production revenues rather than solely in the costs and expenses incurred. 2. Area-Specific Agreement: In some cases, joint operating agreements may be customized for a specific geographical area or field. These agreements may contain additional clauses or modifications to suit the unique characteristics of the particular region of interest. 3. Farm-In/Farm-Out Agreement: This type of agreement may be considered if one party wishes to acquire a percentage interest in an existing operating agreement with another party. It allows for the transfer of ownership and operator ship rights while preserving the terms and conditions of the original agreement. In conclusion, the Montana Joint Operating Agreement 89-03 Revised is a crucial legal document that governs the relationship between parties involved in joint exploration and production of oil and gas resources in Montana. It ensures transparency, cost-sharing, and decision-making processes while protecting the interests of all parties involved. Additionally, different variations or types of joint operating agreements may exist based on project-specific requirements or collaboration scenarios.
