Operator shall also have the right to appear and defend or otherwise participate in all legal and administrative proceedings wherein the interest of the Non-Operator's is involved. Operator and Non-Operator will alternate selection of one (1) square mile sections (other than sections on which producing wells are located) until all eight (8) non-producing sections are chosen, with the operator of the well selecting first. to the extent of the costs unpaid by such party, notwithstanding any election to participate theretofore made. 3.2         The first Makeup Gas taken by an Underproduced Party shall offset Underproduction in the order in which such Underproduction accrued (i.e., first in, first out). The parties to this Agreement are owners of certain oil and gas interests covering the land or lands described in Exhibit "A" attached hereto and they have entered into an Operating Agreement dated the 1st day of September, 2005, covering said land and the oil and gas leases described in Exhibit "A" attached hereto. Service of such notice shall be deemed completed upon deposit of a notice, enclosed in a post-paid wrapper properly addressed to the Participating Party and each other Party obligated to pay said obligations, at the most recent address or addresses as shown on the records of Operator, in a post office or other official depository under the care and custody of the United States Postal Service. In the absence of an updated joint enterprise agreement containing definitions and clarifications, landowners, operators and landowners could create unequal competitive conditions that do not take into account current practices. 5. R.            If the owner of the interests from which a subsequently created interest (as defined in Article III.D.) and any other provision of this Operating Agreement or its Exhibits the provisions of this Article XV. Keep an eye here, or at the AAPL for news of its publication. (iv)         the total volume of Gas actually allocated by the Operator and delivered for each Party's account. Any Makeup Gas taken by an Underproduced Party must be in addition to the Underproduced Party's Full Share of Current Production (as such Share may be reduced by the right of the other Parties to make up for Underproduced from a Well as provided herein). Notwithstanding anything to the contrary, in the event that any party hereto elects not to participate in the drilling of an Exploratory Well, that party shall promptly relinquish and assign, upon such well reaching its Objective Depth and being either (i) plugged and abandoned as a dry hole or (ii) completed as a well capable of production, to the parties who drilled such Exploratory Well, one hundred percent (100%) of its right, title and interest in the Development Block as herein defined. 1.9         "Overproduced Party" shall mean any Party who has taken a greater quantity of Gas from a Well than the Percentage Interest of such Party in the cumulative quantity of all Gas taken from a Well. 4)            Proposals to deepen the well. Although the 1977 JOA was subject to significant revisions, a new revision took place in 1982 and remains widespread throughout the sector. If a party to the agreement does not respond within 72 hours after the information is received, the issuing party may disburse information to the press of other media at its own discretion. Form 610-1982: Protection for Operators Only The A.A.P.L. 14.2         The provisions of Section 14.1 above shall not be applicable in the event any Party mortgages its interest or disposes of its interest by merger, reorganization, consolidation or sale of substantially all of its assets to a subsidiary or parent company or to any company in which any parent of subsidiary owns a majority of the stock of such company. A.A.P.L. 6)            Proposals to plug back and attempt completion above objective formation in ascending order. If Operator elects not to participate in the lease maintenance obligation payment, Operator shall immediately assign to Non-Operator all of its remaining interest in said lease that it elected not to participate in the lease maintenance obligation payment. These records are to be maintained for a minimum period of two (2) years after final cash settlement occurs pursuant to Section 6 hereof. F.         Notwithstanding anything contained herein to the contrary, any Non-Operator may each elect to provide its own insurance or to be a self-insurer hereunder, and in the event of such election, shall neither be covered by insurance obtained by Operator nor be liable for any part of the costs thereof; provided however, Operator shall provide for Worker's Compensation and Employer's Liability coverage for the benefit of the parties hereto and the cost of such coverage shall be charged to the Joint Account. Sixty days prior to the due date of any lease maintenance obligation payment, Non-Operator shall give Operator written notice of its payment recommendation adequately identifying the lease and the payment amount in the form of an invoice. The audit rights provided for in this Section 9 shall be in addition to those provided for in Section 4.4 of this Agreement (Exhibit "E"). An Area of Mutual Interest ("AMI") is hereby created and established which shall be limited to the Restricted Depths described in Exhibit "A" hereto and shall cover all that portion of Maverick County, Texas located north of the lands outlined in Exhibit "E" to that certain Purchase and Sale Agreement dated September 26, 2005. 2.1         Each Party taking Gas will notify the Operator, or cause the Operator to be notified, of the volumes nominated, the name of the transporting pipeline and the pipeline contract number or meter station relating to such delivery, at least three (3) days prior to the nomination deadline of the Party's transporting pipeline, or a minimum of seven (7) days prior to the beginning of the month, whichever is earlier. The taking production in kind provisions of each are similar in many respects, particularly for the first three versions. 1.14         "Underproduced Party" shall mean any Party who has taken a lesser quantity of Gas from a Well than the Percentage interest of such Party in the cumulative quantity of all Gas taken from a Well. E.         The premiums paid for all such insurance shall be charged as operation expense. Ejerforeningen Æblehaven > 2020 > november > 27 > Aapl Model 610 Operating Agreement, Morten Larsen Agreement: An Update for the 2015 Form JOA published as part of the Joint Operations and the New AAPL Form 610-2015 Model Form Operating Agreement, jointly sponsored by RMMLF, AAPL and COPAS, November 3-4, 2016. 4100 FOSSIL CREEK BLVD., Non-Judicial Foreclosure: Notwithstanding anything herein to the contrary, from time to time, the Operator shall invoice the Participating Parties for their share of costs and expenses incurred in any well drilled on the Leased Lands or for other costs and expenses relating to the Contract Area reasonably estimated to exceed $25,000.00. Late payments to be charged interest monthly at prime rate of Chase Bank, Dallas, Texas. General Comprehensive Public Liability Insurance covering the parties hereto in connection with all operations conducted by contractors and subcontractors with minimum general aggregate limit for bodily injury; and property damage of not less than $1,000,000.00, for each occurrence. A.A.P.L. J.            Non-Consent Exploratory Well. In the event any governmental authority properly prescribes that Royalty payments be made on any other basis than that described above, each Party to this Agreement shall make Royalty payments accordingly, commencing on the effective date authorized by such governmental authority but the obligation of each party to hold the other parties harmless for Royalty claims shall in all cases continue. You can add additional forms to your library if necessary. If Participating Party or any such mortgagee does not pay in full all amounts then due within fifteen (15) days after their respective receipts of such foreclosure notice, then Operator shall proceed to foreclose upon Participating Party's interest in accordance with the following provisions:    If Operator should elect to proceed to foreclose the lien of Operator as against the interest of a participating party having an interest in the Contract Area, this Operating Agreement does hereby include provisions for non-judicial sale under the laws of the State of Texas, and the President of the Operator, is hereby appointed as Trustee for such purpose. From the proceeds    of said sale, said Trustee shall first pay all charges, costs and expenses in executing these provisions, and secondly pay all sums due by the Trustee for taxes in the preservation of the security, and thereafter, shall pay all of the remaining sums to the Operator for the satisfaction of the debts of such Participating Party hereunder, and the balance, if any, shall be paid to such Participating Party. 2. We will deal more with the specific provisions of the JOA in future contributions. A JOA provides the crucial foundation upon which multiple leasehold cotenants can cooperate in the joint exploration, development, and production of oil and gas properties. The Operating Agreement, in Articles VII., provide for and Non-Operator does hereby grant to Operator, a lien upon Non-Operator's oil and gas rights in the Contract Area and a security interest in its share of oil and gas when extracted and its interest in all equipment, fixtures, personal property, accounts, inventory and general intangibles and proceeds or product thereof, not owned or hereafter acquired in connection with operations on said property, to secure payment of its share of expenses, together with any interest thereon as set out in said Operating Agreement. Q. form 610 - model form operating agreement - 1982 - 1 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Unless the context clearly indicates otherwise, words used in the singular include the plural, the plural includes the singular, and the neuter gender includes the masculine and the feminine. By far the most common form is the AAPL Form-610. X. hereof in and to the interest of Operator in the Property as described in such Article II., and that Non-Operator(s) shall be further authorized to foreclosure such lien pursuant to. This agreement and all matters pertaining hereto, including, but not limited to, matters of performance, non-performance, breach, remedies, procedures, rights, duties and interpretation or construction, shall be governed and determined by the law of the state in which the Contract Area is located. See Gary B. Conine, Comparison of the 1989 A.A.P.L. The Operating Agreement further provides that Operator shall grant and Operator does hereby grant to Non-Operator(s) a like lien and security interest as described in Article II. shall be borne bv die Drilling Parties 3 in the proportion that the interest of each Drilling … This should set you up and be ready to start working with the AAPL Form 610 Model Form Operating Agreement. 6.1         Upon the earlier of the plugging and abandonment of the Well, the termination of the Joint Operating Agreement to which this Agreement (Exhibit "E") is attached, or at cessation of production from a Well for a period of six (6) consecutive months, the Operator or any other Party may give written notice calling for cash settlement of the Gas production imbalances from the Well. 2. It also seems a bit dodgy not to make your touch-ups easily visible, and you don`t want to look shady. The forms have, generally, been effective in establishing procedures and obligations which have resulted in the drilling of tens of thousands of wells with minimal litigation. For purposes of foreclosing such lien and conducting such non-judicial sale pursuant to the Operating Agreement, Non-Operator appointed and does hereby appoint Robert E. Lee, Jr., whose address is 500 North Loop 1604 East, Suite 250, San Antonio, Texas  78232, as Trustee. This paragraph shall not apply to those items disputed in good faith. 1. "Gas" does not include gas used for operations or which is vented, flared or lost prior to its sale or delivery from a Well. It is stipulated and agreed that in case of any sale hereunder by the Trustee or his successor, all prerequisites of said sale shall be presumed to have been performed and in any conveyance given hereunder, all statements of fact or recitals therein made as to the nonpayment of money secured or as to any default under the terms hereof or as to the request of the Trustee to enforce this trust or as to the proper and due appointment of any successor or substitute Trustee or as to the advertisement of sale or the time, place and terms of sale or as to any other preliminary act or thing shall be taken all courts of law and equity as prima facie evidence that the facts so stated are true. The Operator for the drilling parties shall agree to make a good faith effort as a reasonable prudent operator to log all depths in an Exploratory Well and test all potentially productive zones in a manner consistent with standard oil field practices. The AAPL Model Form JOA - Taking Production in Kind Provisions There have been four versions of the Model Form JOA: 1956, 1972, 1982 and 1989. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1989 . Further, in the event any lease and the interest affected thereby becomes owned by more than one of the parties hereto, but less than all of the parties hereto, such lease and the interest affected thereby shall thereafter be excluded from the terms of thus Agreement and shall be deemed subject to an Operating Agreement identical in terms to this Agreement but only as between the parties owning interests therein with appropriate adjustments to reflect their participating interests. 2.5         In the event that a Party fails to take its Full Share of Current Production required to be produced in order to (i) maintain leases in effect, or (ii) to protect the producing capacity of a Well or reservoir, or (iii) to preserve correlative rights, the Operator may sell any part of such Party's Full Share of Current Production that such Party fails to take for its own account, and render to such Party the proceeds derived from the sale of such Full Share of Current Production based on the actual or constructive price received for such Gas, less applicable taxes and Royalty. 1)            Proposals to do additional logging, coring or testing. Receipt of notice hereunder shall be deemed to have incurred on the third day after proper mailing. If a claim is made against any party or if any party is sued on account of any matter arising from operations hereunder over … 1.12         "Percentage Interest" shall mean the percentage or decimal interest of each Party (as determined in accordance with the Joint Operating Agreement) in the Gas from a Well. No charges for Operator's legal staff without consent of non-operator. The Operating Agreement states and the Operator and Non-Operator hereby agrees that this Memorandum of the Operating Agreement shall serve and may be filed as a Financing Statement to perfect the security interest granted in said Operating Agreement and shall apply to each Non-Operator's interest in oil and gas, equipment, fixtures, personal property, accounts, inventory and general intangibles and proceeds or products related to the oil and gas leases set out in Exhibit "A" hereto. Executed this ____ day of _______________________, 2005, but effective as of the day set out above. Each Non-Operator further agrees to reimburse Operator for any amounts applicable to such Non-Operator's share of production that Operator may be required to refund, rebate or pay as a result of such incorrect interpretation or application, together with interest and penalties thereon owing by Operator as a result of such incorrect interpretation or application. If no Party sold Gas under Arm's Length Agreements when the Overproduction occurred, then the price shall be the last price received by a Party making sales under an Arm's Length Agreement. If sufficient acreage does not exist to form such Development Block in the general form of a square, due to lease line boundaries or other Development Block boundaries that have previously been formed, but sufficient contiguous acreage not yet dedicated does exist, then the proposing party may designate such other acreage so long as it is contiguous and as near as possible to being in the form of a square. $50,000.00 limitation on expenditures without consent. It is intended by the Operating Agreement that Non-Operator(s) enjoy the reciprocal rights otherwise granted to Operator with respect to liens, security interests and non-judicial foreclosure in the event of a default by Operator in the payment of his proportionate part of expenses and costs relating to the Contract Area. 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