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 lands identified in Exhibit A to the Agreement. The Parties have reached an agreement to explore and develop the Leases and/or Oil and Gas Interests for the production of Oil and Gas to the extent and as provided for in this Agreement.
Puerto Rico Joint Operating Agreement 89-03 Revised (PR JOB 89-03 Revised) is a legal agreement designed to regulate and govern the exploration, development, and production activities in joint oil and gas operations in Puerto Rico. It outlines the roles, responsibilities, rights, and obligations of the various parties involved in these operations. The PR JOB 89-03 Revised agreement is primarily intended for use by oil and gas companies, operators, investors, and stakeholders engaged in oil and gas exploration and production activities in Puerto Rico. It serves as a comprehensive framework to ensure efficient and effective collaboration, coordination, and resource management among the parties involved. The key provisions covered in the PR JOB 89-03 Revised agreement include: 1. Scope and Definitions: Clearly defines the geographical area of operations, terms, and conditions to eliminate any ambiguity. 2. Parties and Interests: Identifies the parties involved in the agreement, their respective interests, and responsibilities. 3. Operator ship: Specifies the obligations and authority of the designated operator, responsible for day-to-day operations, decision-making, and managing the joint venture activities. 4. Joint Account: Establishes a joint operating account to pool and manage funding for project expenditures, including exploration, drilling, well operations, production, and any other related costs. 5. Confidentiality and Non-Compete: Protects sensitive technical, financial, and commercial information shared among the parties during the joint operations and restricts them from engaging in similar operations independently. 6. Risk and Liability: Determines the allocation of risks, costs, damages, and liabilities arising from accidents, disasters, environmental concerns, or non-compliance with regulations. 7. Decision-Making: Defines the decision-making processes, voting rights, and dispute resolution mechanisms among the parties to effectively address conflicts, disagreements, or differences of opinion. It's important to note that while Puerto Rico Joint Operating Agreement 89-03 Revised is the primary agreement in use, there might be variations or customized versions based on specific projects, additional provisions necessary for particular operating conditions, or evolving legal and regulatory requirements. These variations can include Puerto Rico JOB 89-03 Revised Model Form for Offshore Operations or Puerto Rico JOB 89-03 Revised Model Form for Onshore Operations. In summary, Puerto Rico Joint Operating Agreement 89-03 Revised is an instrumental legal document that ensures the smooth coordination and collaboration among oil and gas companies operating in Puerto Rico. This agreement aims to facilitate efficient resource management, mitigate risks, protect parties' interests, and establish a framework for successful exploration and production operations in the region.
