Course Outline
Basic Concepts
- The nature of "joint operations"
- History of and working with the AAPL Model Form Operating Agreement
- Pitfalls in the Model Form
Overview of the Model Form General Matters
- Scope of the joint operations
- Definitions and exhibits
Interest of the Parties
- Interest in cost and production
- Payment of royalties
Taking Production in Kind
- In General
- Gas Balancing in "split stream" or "gas storage" situations
Conduct of Operations under the Model Form
- The Operator
- Powers and responsibilities
- Eligibility, resignation, removal, and replacement
- Expanded responsibilities under the 1989 version
- Procedure for the conduct of operations
- Types of operations and operator's authority
- Proposing and conducting operations
- The initial well
- Subsequent operations (subsequent wells, "Wellbore" operations, horizontal wells)
- "Notice," including 1989 versions
- Cost overruns, conflicting proposals, and modifying or terminating the operation
- Special problems of consent/non-consent operations
Unit Administration: Non-performing Parties
- In General
- Remedies against a non-performing operator
- Remedies against defaulting or potentially defaulting party
- Available remedies under prior versions of the Model Form
- Additional remedies under the 1989 Model Form
- Suggested additional changes
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