New York Cost Overruns for Non-Operator's Non-Consent Option

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Multi-State
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US-OG-700
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Word; 
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Description

This form provides that when Operator, in good faith, believes or determines that the actual costs for any Drilling, Reworking, Sidetracking, Deepening, or Plugging Back operation conducted under this Agreement will exceed a designated of the costs estimated for the operation on the approved AFE, the Operator will give prompt notice by telephone to the other Parties participating in the operation, as well as delivering a supplemental AFE estimating the costs necessary to complete the operation. Each Party receiving the supplemental AFE shall have forty-eight from receipt of the notice to elect to approve Operators recommendation or propose an alternative operation.

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FAQ

A provision in a joint operating agreement enabling sub-groups of participants to undertake activities in the licence area (usually seismic surveys, drilling and development) at their own cost and risk, and to take the entire benefit of those activities, despite those activities having failed to reach the requisite ...

Non-solicitation agreements are often used in employment contracts to protect an employer's business interests. However, California courts have held that these agreements are void and unenforceable because they restrain trade in violation of public policy.

Common Mistakes Companies Make with Non-Compete Agreements The agreement is not enforceable because the time period it covers is too long. The period considered reasonable varies by state but typically ranges from 6 months to two years. Longer agreements will likely be found invalid.

On June 20, 2023, the New York State Assembly passed A1278B, amending the state's current labor law to prohibit non-compete agreements for workers. The bill comes in the wake of the Federal Trade Commission's proposal for a nationwide ban on non-competes.

For the most part, courts in New York find that employers' non-solicit agreements can only be enforced when it comes to employees who have access to uniquely specialized or protected proprietary information.

There are now five states that outright ban virtually all non-competes, i.e., California, Colorado, Minnesota, North Dakota and Oklahoma. These laws have just very narrow exceptions, such as for certain sales of businesses.

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New York Cost Overruns for Non-Operator's Non-Consent Option