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.
Nebraska Joint Operating Agreement 89-03 Revised is an essential legal document that governs the operational relationship between multiple parties involved in oil and gas exploration and production activities in Nebraska. This agreement sets out the rights, obligations, and responsibilities of the parties involved, ensuring seamless collaboration and joint management of operations. One key aspect of the Nebraska Joint Operating Agreement 89-03 Revised is the clear delineation of the working interest holders within the project. These working interest holders include the operators, non-operators, and participating parties who have ownership rights in the project. The agreement specifies their respective roles, financial contributions, and decision-making authority in accordance with their working interest percentages. The agreement also outlines the funding mechanism, known as the Joint Account, which facilitates the pooling of financial resources to cover the costs associated with exploration, drilling, production, and operating expenses. It establishes the procedures for the allocation of costs and revenues among the parties, ensuring fairness and transparency in financial matters. Furthermore, the Nebraska Joint Operating Agreement 89-03 Revised addresses the obligations and responsibilities of the operator, who is primarily responsible for managing day-to-day operations. The operator is entrusted with the duty to plan, execute, and supervise activities in compliance with the best industry practices, regulations, and environmental standards. The agreement includes provisions for reporting, accounting, and auditing requirements to ensure accurate record-keeping and financial transparency. In addition to these fundamental components, there might be specific types or variations of the Nebraska Joint Operating Agreement 89-03 Revised tailored to meet project-specific needs. Examples of such agreements may include: 1. Exploration and Production Joint Operating Agreement: This type of agreement is focused on the initiation and execution of exploration activities, delineation of potential resource areas, and subsequent production efforts. 2. Area of Mutual Interest (AMI) Joint Operating Agreement: Under this agreement, multiple parties join forces in a defined geographical area to collectively explore and exploit hydrocarbon resources. It promotes collaboration and coordination among the parties to maximize efficiency and minimize duplication of efforts. 3. Farm out Joint Operating Agreement: This variant of the agreement occurs when one party, called the armor, agrees to assign a portion of their working interest to another party, known as the farmer, enabling them to undertake operations in a designated area. The armor transfers the operational responsibility to the farmer while retaining an interest or the option to regain an interest in the project. It is important to note that the exact terms and conditions, as well as the provisions, may vary from agreement to agreement, depending on the specific needs and negotiations among the parties involved. Nevertheless, the Nebraska Joint Operating Agreement 89-03 Revised serves as a comprehensive framework to establish a mutually beneficial relationship and ensure effective management of oil and gas operations in Nebraska.
