This form is used if any party fails or is unable to pay its proportionate share of the costs for the operation, the Operator shall have the right to enforce the lien, or the Operator shall have the right, exercised before or after Completion of the operation.
The Oklahoma Rights of Operator Against A Defaulting Party Pre-1989 Agreements refer to the set of legal provisions and rights established in Oklahoma for the operator of an oil or gas well when a party involved in a joint operating agreement defaults on their obligations. These agreements were in effect before the year 1989 and have been instrumental in regulating the oil and gas industry in the state. Under these agreements, operators possess several rights and remedies when a party defaults on their contractual obligations. The operator has the authority to take necessary actions to protect their interests and secure the smooth continuation of operations. Some key rights granted to the operator against a defaulting party include: 1. Right to Cure Default: The operator has the power to provide a defaulting party with a notice of default, specifying the existing breach or non-compliance. The defaulting party is usually granted a reasonable period to cure the default and rectify the breach. If the defaulting party fails to cure the default within the provided timeframe, the operator can take further actions. 2. Right to Offset: In case of a default, the operator has the right to offset any amounts owed by the defaulting party against funds due to them. This allows the operator to protect their financial interests and recover any losses incurred as a result of default. 3. Right to Payment: When a party defaults, the operator is entitled to receive any amounts owed to them under the joint operating agreement. This may include reimbursement for expenses incurred, costs of operations, or any other agreed-upon payments. 4. Right to Suspend Operations: If a defaulting party fails to cure the breach within the specified timeframe or fails to provide satisfactory assurance of performance, the operator has the right to suspend further operations under the joint operating agreement until the default is resolved. This ensures that the operator does not bear the burden of the defaulting party's obligations. Different types of Oklahoma Rights of Operator Against A Defaulting Party Pre-1989 Agreements may include specific provisions based on the nature of the joint operating agreement. However, the above-mentioned rights are commonly found in such agreements to protect the interests of the operator and maintain efficiency in the oil and gas industry. In conclusion, the Oklahoma Rights of Operator Against A Defaulting Party Pre-1989 Agreements provide operators with essential rights and remedies against defaulting parties in joint operating agreements. These agreements play a vital role in safeguarding the interests of operators and maintaining the smooth functioning of oil and gas operations in Oklahoma.
