This operating agreement is used when the parties to the 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 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.
Illinois Joint Operating Agreement 82 Revised: The Illinois Joint Operating Agreement 82 Revised (JOB) is a legal document that outlines the relationship and collaboration between two or more entities in oil and gas operations. It provides a framework for the exploitation, development, and production of hydrocarbons in the state of Illinois. This agreement was specifically drafted and revised according to Illinois state laws to ensure the smooth functioning and cooperation between the participating parties. The purpose of the JOB is to establish clear guidelines and procedures for all aspects of oil and gas operations, including exploration, drilling, production, and the sharing of costs, risks, and profits among the parties involved. Types of Illinois Joint Operating Agreement 82 Revised: 1. Exploration Joint Operating Agreement: This type of JOB focuses on the initial stages of oil and gas operations, specifically the exploration and evaluation of potential hydrocarbon reserves in Illinois. It outlines the responsibilities, cost-sharing arrangements, and risk mitigation strategies among the participating entities. 2. Development Joint Operating Agreement: Once a potentially viable hydrocarbon reserve is identified, this type of JOB governs the subsequent development and appraisal activities required to bring the reserves into production. It covers the allocation of costs, the rights and obligations of each party, and the sharing of data and technology necessary for effective development operations. 3. Production Joint Operating Agreement: This JOB pertains to the actual operation and production of hydrocarbons in Illinois. It encompasses the logistics, infrastructure, and maintenance required for continuous production, as well as the allocation and distribution of profits and losses among the parties involved. Key terms in the Illinois Joint Operating Agreement 82 Revised: 1. Non-Operator: An entity that does not hold the operational responsibility but contributes financially to the project's costs. 2. Operator: The entity responsible for managing and conducting the day-to-day operations of the project. 3. Working Interest: A party's proportionate share of the costs, risks, and potential returns to the project. 4. Acreage: The specific area or leasehold under consideration for exploration and production. 5. Force Mature: An uncontrollable event or circumstance that may relieve the parties from their contractual obligations temporarily. In conclusion, the Illinois Joint Operating Agreement 82 Revised is an essential legal document that ensures cooperation, clarity, and efficient functioning in oil and gas operations in Illinois. Its various types cater to different stages of the oil and gas industry, from exploration to production. By following the guidelines and provisions outlined in the JOB, parties involved can effectively collaborate, maximize profitability, and manage risks.
