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.
A Florida Joint Operating Agreement 89 Revised (JOB 89 Revised) is a legal document that outlines the operational and financial obligations among two or more parties engaged in oil and gas exploration and production activities in Florida. It serves as a framework to define the working relationship, responsibilities, rights, and obligations of the involved parties in a joint venture. The JOB 89 Revised is specific to the state of Florida and is an updated version of the original Joint Operating Agreement introduced in 1989. This revised version takes into account any amendments, changes, or updates to the initial agreement, incorporating them to ensure a comprehensive and up-to-date document that reflects the current regulations and best practices in the industry. This agreement is crucial in facilitating collaboration and minimizing conflicts between different parties involved in a joint venture. It typically includes details regarding the following key aspects: 1. Parties: The agreement identifies and defines the parties involved in the joint venture, including the operator(s) responsible for managing the day-to-day operations and the non-operators who have an interest in the project. 2. Purpose and Scope: It outlines the purpose and objectives of the joint venture and clearly defines the scope of activities that will be undertaken. This section may also cover the geographic area covered by the agreement. 3. Operating Committee: The JOB 89 Revised establishes an operating committee, composed of representatives from each party involved, to oversee and make decisions regarding the joint venture. This committee often uses the voting mechanism to reach agreements on key operational matters. 4. Obligations and Responsibilities: The agreement outlines the obligations, duties, and responsibilities of each party within the joint venture. This includes financial commitments, such as funding requirements and cost-sharing arrangements, as well as operational roles and responsibilities. 5. Accounting and Financial Procedures: The JOB 89 Revised establishes financial reporting and accounting procedures, specifying how costs, revenues, and profits will be allocated and distributed among the parties. It may also address mechanisms for auditing and resolving financial disputes. 6. Default and Termination: This section sets out the consequences in the event of default or breach of the agreement by any party. It may outline potential remedies, such as financial penalties or the option to buy out the defaulting party's interest. Additionally, termination conditions and procedures are typically defined. 7. Confidentiality and Non-compete: The agreement may include provisions to protect sensitive information shared among the parties and prevent them from competing with each other within the agreed-upon area during the joint venture's duration. It's essential to note that while the JOB 89 Revised serves as a standard template, specific variations and additional provisions can be included to meet the unique requirements of a joint venture. Additionally, Joint Operating Agreement 89 Revised is one of several types of Jobs used in Florida, depending on the specific context of the oil and gas operations involved. Other variations may include JOB 95 Revised or JOB 2000 Revised, each tailored to meet the evolving needs of the industry.
