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.
The Oregon Joint Operating Agreement (JOB) 89 Revised is a legal document that governs the exploration, development, and production activities of oil and gas wells in Oregon. It is designed to establish the rights, responsibilities, and obligations of the parties involved in joint operations, promoting efficient and cooperative management of resources. This agreement encompasses various key aspects, including ownership interests, operator ship, decision-making processes, financial obligations, and dispute resolution procedures. By standardizing operations, the JOB facilitates efficient collaboration among adventurers while ensuring compliance with regulatory requirements. The Oregon JOB 89 Revised recognizes different types of working interests, allowing parties to enter into the agreement based on their specific roles and proportions of contributed capital. The main types of interests defined in this agreement include: 1. Operating Interest: The party designated as the operator assumes responsibility for managing and conducting operations related to exploring, developing, and producing hydrocarbons. The operator is entitled to certain compensation and is accountable for diligently executing the approved work program. 2. Non-Operator Interest: Non-operators contribute capital to the joint operation but do not assume operator ship responsibilities. Instead, they have the right to participate in decision-making processes, fetch returns on investment, and audit the operator's performance. 3. WI (Working Interest): Working interests represent the proportionate ownership in the joint operations and dictate the sharing of costs, revenues, and risks. Parties with a higher working interest contribute more to the project and are entitled to a proportionate share of the returns generated. 4. ORRIS (Overriding Royalty Interest): An overriding royalty interest is a type of interest that grants a percentage share of production revenue to a party without bearing any costs or risks associated with the operation. Orris are often reserved for the landowner or other interested parties. The Oregon JOB 89 Revised serves as a foundation for effective collaboration and sets clear guidelines to streamline the management of oil and gas operations in the state. It ensures fairness, transparency, and accountability among the parties involved, promoting responsible resource development and maximizing the benefits for all stakeholders.
