This operating agreement is used when the parties to the 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 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.
New Mexico Joint Operating Agreement 82 Revised (NMJOA-82R) is a legal contract commonly used in the oil and gas industry in the state of New Mexico. This agreement specifically outlines the rights, responsibilities, and obligations of various parties engaged in joint operations related to the exploration, development, and production of oil and gas resources. It serves as a crucial document to facilitate coordination and collaboration between stakeholders in a joint venture, ensuring efficient and cost-effective operations while minimizing potential disputes. The NMJOA-82R is typically entered into by multiple parties, such as oil and gas companies, operators, working interest owners, and non-operating interest owners. Its primary purpose is to establish a framework that governs the joint working relationship, pooling of resources, sharing of costs and expenses, as well as allocation of production revenues and royalties among these parties. Key provisions in the NMJOA-82R include: 1. Definitions: Clearly defines the terms used throughout the agreement to avoid any ambiguity or misinterpretations. 2. Scope and Objectives: Outlines the general intent and purpose of the joint operating agreement, including the specific project or area covered by the agreement. 3. Obligations and Authority: Details the responsibilities and powers of the operator and other parties involved, such as drilling and testing obligations, environmental compliance, safety measures, and decision-making authority. 4. Joint Interest Accounting: Describes the procedures for accounting, billing, and reimbursement of costs, profits, and losses incurred during the joint operations. 5. Default and Termination: Specifies the conditions under which a party may be deemed in default and the remedies available, as well as the circumstances that may lead to the termination of the agreement. 6. Dispute Resolution: Provides mechanisms for resolving disputes, which may include negotiation, mediation, or arbitration, to avoid costly litigation. It's important to note that while NMJOA-82R is a standardized agreement, specific terms and clauses can be customized to suit the unique needs of the joint venture. Examples of different types of NMJOA-82R may include variations based on specific projects, geographical locations, or size of the joint venture. These could be tailored agreements such as NMJOA-82R for offshore operations, NMJOA-82R for shale gas development, or NMJOA-82R for small-scale operations. In summary, New Mexico Joint Operating Agreement 82 Revised (NMJOA-82R) is a crucial contractual instrument used in the oil and gas industry to govern joint operations and ensure a fair and efficient collaboration among stakeholders. Its detailed provisions address various aspects of joint venture management, financial obligations, and dispute resolution, ultimately promoting successful oil and gas exploration, development, and production activities in the state of New Mexico.
