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.
Louisiana Joint Operating Agreement 89 Revised, also known as LA JOB 89 Revised, is a legal document that governs the rights and obligations of parties involved in the exploration and production of oil and gas in Louisiana. It is an updated version of the initial agreement, incorporating amendments and modifications to suit the evolving needs and regulatory requirements of the oil and gas industry. The Louisiana Joint Operating Agreement 89 Revised sets out the specific provisions and guidelines related to the establishment, operation, and termination of joint operations among oil and gas companies working together on a specific project. Commonly used by exploration and production companies, this agreement helps facilitate collaboration, cost-sharing, and risk management among the different parties involved to maximize efficiency and minimize potential disputes. The agreement typically covers various aspects, including the purpose and scope of the operations, financial arrangements, liability allocation, governing procedures, dispute resolution mechanisms, and potential consequences for non-compliance. It also addresses the respective rights and responsibilities of the operators and the non-operators, defining their roles in the joint venture. Within the realm of Louisiana Joint Operating Agreement 89 Revised, there can be variations or tailored agreements based on specific requirements or circumstances. Some of these variations include: 1. Farm out Agreement: This agreement allows the operator to assign or transfer a portion of its working interest in the project to another party, who will then assume a portion of the associated risks and costs. 2. Unitization Agreement: This agreement establishes a unit or a pool of land as a single operating entity, combining the interests and resources of multiple parties. It enables the efficient management and exploitation of shared reservoirs while ensuring equitable distribution of production and costs. 3. Area of Mutual Interest (AMI) Agreement: This agreement outlines an area within which the parties have established an exclusive right to jointly evaluate and acquire interests in oil and gas leases. It promotes partnership and cooperation in identifying potential prospects and sharing costs within the defined area. Overall, the Louisiana Joint Operating Agreement 89 Revised and its various iterations aim to provide a comprehensive framework for collaboration and effective management of oil and gas operations in Louisiana. It ensures clarity, fairness, and adherence to legal and regulatory standards while encouraging the development and responsible utilization of the state's valuable energy resources.
