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.
Arkansas Rights of Operator Against A Defaulting Party Pre-1989 Agreements In Arkansas, the Rights of Operator Against A Defaulting Party under Pre-1989 Agreements are crucial in safeguarding the rights and interests of operators in oil and gas operations. These rights grant operators certain powers to protect their investments and ensure the smooth functioning of the operations even in the event of a defaulting party. Under the Arkansas law, there are three main types of Rights of Operator Against A Defaulting Party Pre-1989 Agreements: 1. Liens: Operators have the right to place liens on the property of the defaulting party to secure any unpaid operations expenses. These liens act as legal claims against the property, giving the operator a priority right to recover the amounts owed. Liens can be enforced through foreclosure proceedings, allowing the operator to recover the unpaid debts by selling the defaulting party's property. 2. Termination Rights: Pre-1989 agreements often provide operators with termination rights in case of default. If the defaulting party fails to fulfill its obligations, such as making required payments or performing necessary work, the operator can terminate the agreement. Termination gives the operator the ability to regain control of the operations and seek alternative arrangements to ensure the project's success. 3. Collection of Costs: Operators are entitled to recover the costs incurred as a result of a defaulting party's breach of contract. This includes expenses related to repairs, maintenance, or any other necessary work performed by the operator to mitigate damages caused by the default. The operator can seek an order from the court to collect these costs from the defaulting party, ensuring they are not left with undue financial burden due to the breach. It is important to note that these rights may vary depending on the specific terms outlined in the individual agreement. Therefore, it is crucial for operators to carefully review and understand their rights and obligations as set forth in the pre-1989 agreements to effectively exercise their rights in case of default. To sum up, Arkansas Rights of Operator Against A Defaulting Party Pre-1989 Agreements encompass the rights to place liens on the property, terminate the agreement, and collect costs incurred as a result of a defaulting party's breach. By leveraging these rights, operators can protect their investments and secure the successful completion of oil and gas operations.
