Our presentation on the revised AAPL Form 610-2015 JOA (Oil & Gas Joint Operating Agreement), highlighting the changes from the 1989 form, as presented at the 2018 Gordon Arata Duck Lunch seminar by Paul B. Simon and Samuel E. Masur.
The document outlines the multi-stage approval process required for building projects in Delhi, India. It begins with project feasibility assessment and pre-sanction stages. Approval is then required from various authorities at the sanction/building permit stage, including the DDA, airport and forest authorities, traffic police, and more. Numerous additional approvals are needed at the construction stage, and a completion-cum-occupancy certificate must be obtained before occupation. Non-sanctioned buildings can face demolition and legal action.
The document discusses the rehabilitation of the lower level deck of the Henry Hudson Bridge in New York. Specifically, it describes the replacement of the lower level deck between 2006-2010 by Judlau Contracting Inc. under the supervision of the New York City Triborough Bridge and Tunnel Authority and engineering consultants. The project involved replacing 76,000 square feet of deck, over 100 tons of steel repair, and rehabilitation of other areas of the bridge over its nearly 4-year duration.
Backlick Run Gravity Sewer Abandonment Project June 2020Fairfax County
This is a 4,000 linear foot section of gravity sewer that was taken out of service. The pipe had deteriorated and was prone to collapse. The area was restored and site improvements were completed.
This document discusses various techniques for directional drilling, including whipstocks, downhole motors, and steerable bottom hole assemblies. It provides details on running procedures for open hole and casing whipstocks. Downhole motors use bent subs or housing to create deflection, with adjustable bent subs allowing control of deflection from surface. Later techniques include steerable bottom hole assemblies with multiple bends or offset stabilizers to allow drilling the build section and constant angle zone with one tool.
This document provides an introduction to directional drilling and its applications. It defines directional drilling as deviating a well from vertical to a planned subsurface target. Directional drilling is mostly used to avoid structural impediments, for river crossings, high angle wells, and maximizing production from structurally restricted reservoirs like fractured or cavernous reservoirs. Applications include multi-well drilling from artificial islands or shorelines, relief wells, fault control drilling, and horizontal drilling. Deviated well patterns include shallow and deep kick-offs, S-shapes, and horizontal patterns like extended reach and various radius wells.
At this Public Sector Planning Club we reviewed:
- Recent developments in planning law, including cases and guidance
- Consideration of the use of planning conditions, including the appropriate use of pre-commencement conditions
- The powers available for stopping up and diverting highways, when these may be used, and points to consider
This document outlines proposals for reforms to section 106 planning obligations and the introduction of a dispute resolution process. Key points include:
- Giving the Secretary of State power to restrict section 106 obligations on affordable housing in certain situations.
- Establishing a procedure where if section 106 terms are not agreed within a set time, any party can request appointment of a third party to help resolve outstanding issues.
- The appointed person would have a limited time to issue a report with their process, any agreed terms, and recommendations on disputes. The local authority would then have a short time to either approve based on the report or refuse the application.
- The document seeks feedback on several aspects of the proposed dispute resolution process
The document outlines the multi-stage approval process required for building projects in Delhi, India. It begins with project feasibility assessment and pre-sanction stages. Approval is then required from various authorities at the sanction/building permit stage, including the DDA, airport and forest authorities, traffic police, and more. Numerous additional approvals are needed at the construction stage, and a completion-cum-occupancy certificate must be obtained before occupation. Non-sanctioned buildings can face demolition and legal action.
The document discusses the rehabilitation of the lower level deck of the Henry Hudson Bridge in New York. Specifically, it describes the replacement of the lower level deck between 2006-2010 by Judlau Contracting Inc. under the supervision of the New York City Triborough Bridge and Tunnel Authority and engineering consultants. The project involved replacing 76,000 square feet of deck, over 100 tons of steel repair, and rehabilitation of other areas of the bridge over its nearly 4-year duration.
Backlick Run Gravity Sewer Abandonment Project June 2020Fairfax County
This is a 4,000 linear foot section of gravity sewer that was taken out of service. The pipe had deteriorated and was prone to collapse. The area was restored and site improvements were completed.
This document discusses various techniques for directional drilling, including whipstocks, downhole motors, and steerable bottom hole assemblies. It provides details on running procedures for open hole and casing whipstocks. Downhole motors use bent subs or housing to create deflection, with adjustable bent subs allowing control of deflection from surface. Later techniques include steerable bottom hole assemblies with multiple bends or offset stabilizers to allow drilling the build section and constant angle zone with one tool.
This document provides an introduction to directional drilling and its applications. It defines directional drilling as deviating a well from vertical to a planned subsurface target. Directional drilling is mostly used to avoid structural impediments, for river crossings, high angle wells, and maximizing production from structurally restricted reservoirs like fractured or cavernous reservoirs. Applications include multi-well drilling from artificial islands or shorelines, relief wells, fault control drilling, and horizontal drilling. Deviated well patterns include shallow and deep kick-offs, S-shapes, and horizontal patterns like extended reach and various radius wells.
At this Public Sector Planning Club we reviewed:
- Recent developments in planning law, including cases and guidance
- Consideration of the use of planning conditions, including the appropriate use of pre-commencement conditions
- The powers available for stopping up and diverting highways, when these may be used, and points to consider
This document outlines proposals for reforms to section 106 planning obligations and the introduction of a dispute resolution process. Key points include:
- Giving the Secretary of State power to restrict section 106 obligations on affordable housing in certain situations.
- Establishing a procedure where if section 106 terms are not agreed within a set time, any party can request appointment of a third party to help resolve outstanding issues.
- The appointed person would have a limited time to issue a report with their process, any agreed terms, and recommendations on disputes. The local authority would then have a short time to either approve based on the report or refuse the application.
- The document seeks feedback on several aspects of the proposed dispute resolution process
This document discusses site possession under construction contracts. It defines site and possession, and outlines the contractor's rights and obligations regarding site possession. Some key points:
- The contractor has the right to enter, occupy, and use the site from the possession date until completion to carry out the works. Possession allows exclusive use of the site as needed to construct the works.
- The contractor must inspect the site before submitting their tender to understand site conditions. They are responsible for all information affecting their tender.
- The employer must give possession by the stated date to allow the contractor to start work. This is usually 2 weeks after contract award. The contractor must then commence and diligently proceed with the works to the
This document discusses site possession in construction contracts. It begins by defining site and possession. It then discusses the contractor's right to enter the site and occupy it from the date of possession until completion. The contractor must be given reasonable possession of the site to carry out the works. The document outlines the process for site possession, including the letter of acceptance, fixing the date for possession, and the contractor's obligations after taking possession. It also discusses delays in giving possession, the contractor's options, and conditions that must be met before commencing work such as providing insurance documents. Overall, the document provides an overview of site possession procedures and the contractor and employer's obligations regarding possession of the construction site.
The document proposes a dispute resolution process for section 106 planning obligations in the UK. It outlines:
1) A process where if obligations are not agreed upon within a set time, any party can request a person be appointed to help resolve outstanding issues and make a report with recommendations.
2) The appointed person would have qualifications determined by regulations and a limited time period to issue a report after parties engage in the process.
3) The report would make recommendations on agreed obligations and disputes, and parties would have a short time after to complete obligations before an application is refused.
This document summarizes construction details related to active construction projects in Florida, including construction contracts, major transportation projects, and general construction operations. It provides information on construction equipment requirements, experimental equipment approval processes, mobilization and maintenance of traffic procedures, and erosion control measures to prevent water pollution during construction activities. Temporary work structures, detour operations, and prevention of erosion and water pollution are also addressed at a high level.
In our first planning club of 2017 we covered:
• formation and use of Section 106 obligations and conditions
• a look at recent changes to permitted development rights
• challenges to planning decisions, including judicial review and appeals.
This article describes in a nut shell, the changing attitude of Oil and Gas
companies towards innovative drilling technologies in the down turn, some of the
important innovations in drilling technologies and its relevance to upstream oil and
gas, the pace of adoption of innovative drilling technologies in the upstream oil and
gas and the need for an optimistic future outlook.
Body corporate-and-community-management-act-1997-qldMark Game
The document discusses how the Body Corporate and Community Management Act 1997 (Qld) affects contracts for the sale of proposed lots in a community titles scheme. Key points include:
- Contracts will include an implied sunset date by which settlement must occur, generally 5.5 years from entering the contract.
- Sellers must make certain disclosures to buyers, including a disclosure statement and plan providing details about the scheme, contributions, by-laws, and more.
- Buyers may be entitled to terminate the contract if disclosures are inaccurate or misleading, or if settlement does not occur by the sunset date.
The document discusses contract payments and variations for a construction management and supervision training program. It defines contract payments, advance payments, interim payments, final certificates, and retention. It describes the authority levels of the engineer, engineer's representative, and employer for approving payments. It also defines what constitutes a variation, references the relevant ICTAD documents for variations procedures, and outlines the authority and process for approving variations, including NWSDB's procedure.
The document provides information on the redevelopment process for societies residing in old buildings located in prime areas. It discusses key considerations and steps societies should take before opting for redevelopment, including getting a structural audit report, circulating the report to members, obtaining written consent from members, and carefully selecting a developer. The document also outlines advantages like additional area and modern amenities, and disadvantages like disruption and increased maintenance costs. Overall, it emphasizes the importance of transparency, legal agreements, and following due process to ensure a successful redevelopment.
Trenchless technologies comparing thrust boring with horizontal directional ...Tobiloba Omitola
Thrust boring and horizontal directional drilling (HDD) are trenchless construction methods for installing underground infrastructure with minimal surface disruption. Thrust boring involves drilling a borehole and inserting a steel casing simultaneously using an auger drill head. It is unsteerable. HDD involves drilling a steerable pilot bore, reaming it to size, and pulling the pipeline back through. Key factors in selecting between the two methods include soil conditions, required accuracy, and ability to steer around underground obstacles. Thrust boring is best for stable soils while HDD allows for navigation and is suitable for longer distances and avoiding existing utilities. Both methods seek to minimize environmental and community impacts compared to traditional trenching.
This ordinance amends the Georgetown/Scott County Subdivision & Development Regulations regarding environmentally sensitive areas like sinkholes. It establishes new definitions and requirements for identifying, studying, and mitigating potential impacts of development on sinkholes, cave areas, rock formations, steep slopes, and other environmentally sensitive features. Developers must provide analysis and documentation of such areas, designate non-buildable zones, and implement measures to protect features and offset development impacts, as determined by geotechnical engineers and reviewed by the Planning Commission.
Here are the key points the Site Agent should make in support of the claim:
- Clause 2.2.1 of the GCC allows for claims due to adverse physical conditions that could not reasonably have been foreseen by an experienced contractor.
- The recent flooding was an adverse physical condition - i.e. it made execution of the works more difficult and expensive.
- As flooding is not normally expected on this site, an experienced contractor could not reasonably have foreseen this event.
- Records have been kept of the delays and additional costs incurred due to dealing with the effects of the flooding.
- An extension of time is required to account for the delays caused. Payment is also due for the additional costs incurred
This document outlines an agenda for a two-day seminar on general conditions of contract for construction works presented by Zaathi Engineers & Project Managers.
Day one will cover claims, including contractor and employer claims, justification of claims, handling procedures, validity, and adjudication. It will also discuss claim disputes, including definitions, notices, and resolution through amicable settlement, adjudication, arbitration, or court proceedings.
Day two will involve dividing participants into groups to analyze case studies on the general conditions of contract, with groups presenting the facts of the case, relevant contract provisions, discussion, and conclusions. Sessions will address time extension claims, including causes, obstacles, required information in claims, and examples of concurrent
This document outlines the approval process and requirements for subdivision plans, building designs, and housing projects in the Philippines. Developers must secure approval from local governments or regulatory boards by submitting preliminary plans, development plans, engineering plans, and other documents signed by licensed professionals. Plans will be evaluated for compliance with standards before permits are approved. Subdivision plans also require a verification survey and approval after development plans are approved.
Hydraulic Fracturing Understanding well constructionAndy Varoshiotis
The document discusses the key stages and activities involved in well construction, including:
1) Planning and preparation which involves acquiring leases, permits, and preparing the site.
2) Drilling which involves mobilizing rigs and equipment, drilling the surface and intermediate holes, and drilling to total depth while collecting samples.
3) Casing and cementing which protects groundwater and involves installing production casing.
4) Completion and stimulation which involves installing permanent infrastructure, perforating reservoirs, and stimulating production. Site footprint is then reduced after equipment is removed.
1Introduction to Petroleum Engineering Prepared by Dr MinoAnastaciaShadelb
1
Introduction to Petroleum Engineering Prepared by Dr Minou Rabiei
PTRE 201
Introduction to Petroleum Engineering
Drilling Preliminaries
1
Introduction to Petroleum Engineering Prepared by Dr Minou Rabiei
Lecture Outline
2
• Phases in an oilfield life cycle
• Different types of wells drilled in each phase
• An overview of the activities before drilling operations start
• National and international agreements involved in drilling projects
• Governmental regulations
2
Introduction to Petroleum Engineering Prepared by Dr Minou Rabiei
1. Exploration: Involves geological, geochemical and geophysical surveys
2. Appraisal: Preliminary development planning, feasibility studies
3. Development: Capital-intensive investments for operational infrastructure
4. Production: Starting to produce hydrocarbon
5. Abandonment: Decommissioning of facility installations
Oilfield Life Cycle
3
Introduction to Petroleum Engineering Prepared by Dr Minou Rabiei
• Geoscientists predict where the oil and gas occur.
– Geology: Structural and stratigraphic studies
– Geochemistry: Chemistry of petroleum and its sources
– Geophysics: Gravity, magnetic and seismic methodologies
• Existence of a working petroleum system is proved.
– Preliminary business and economic planning
– Define the optimal drilling location
• Drilling starts after all
» geological,
» economic,
» political and
» environmental
conditions are considered and evaluated.
Exploration Phase
4
3
Introduction to Petroleum Engineering Prepared by Dr Minou Rabiei
• WildCat Wells
– Drilled in an unexplored and unproven area Might be “Dry Hole”
• Exploratory wells
– Assess if a prospect comprises commercial amounts of hydrocarbon
• Appraisal (step out, delineation) wells
– Determine the size of the field
– Assess the viability of the reservoir
• Developmental wells
– Drilled in the known extent of the field to produce the hydrocarbon
• In-fill wells
– Drilled within the original drilled well patterns
Well-Type Classification
5
Introduction to Petroleum Engineering Prepared by Dr Minou Rabiei
• The most expensive component in exploration and field development.
• A multidisciplinary project:
– Operating company
– An outside drilling contractor
– One or more service companies
• Health, safety and environmental (HSE)
Drilling Engineering Group Activities:
– Detailed well design, drilling rig selection
– Contractor evaluation and bid requests
– Risk assessment
– Ensuring safe, economic and on schedule operations
Drilling Operations
6
4
Introduction to Petroleum Engineering Prepared by Dr Minou Rabiei
• In most countries, all mineral resources belong to the government
• In the United States and parts of Canada, private land has two separate ownerships:
– Surface rights owner
• Can build a house, ranch, or farm on the land
– Mineral rights owner
• Can explore for and produce the gas and oil found on their land
Land Rights
7
Introduction ...
The document outlines the rules for registration of contractors with the Central Public Works Department of India, including the eligibility criteria, categories and classes of enlistment, and process for changes to registration details. It defines terms like category, class, and contractor. It also provides guidelines for facilitating unemployed engineers and architects as well as retired government employees to register.
CE 444 Contracts and SpecificationsAssignment 7 - Conduct a 95MaximaSheffield592
This document provides the scope of work for repairs to sill plates on nine road closure structures in East Grand Forks, Minnesota. Key details include:
- Repairs must fill voids under existing sill plates and replace sections of steel sill plates with concrete.
- Submittals such as a work plan, safety plan, repair plan, and traffic control plan are required before starting work.
- Concrete mix design must achieve a minimum strength of 5,000 psi and water-cement ratio of no more than 0.40.
- Work must be completed by December 1 for some repairs and June 1 for others.
- Traffic control is needed to allow one lane to remain open when working on busy
This document discusses site possession under construction contracts. It defines site and possession, and outlines the contractor's rights and obligations regarding site possession. Some key points:
- The contractor has the right to enter, occupy, and use the site from the possession date until completion to carry out the works. Possession allows exclusive use of the site as needed to construct the works.
- The contractor must inspect the site before submitting their tender to understand site conditions. They are responsible for all information affecting their tender.
- The employer must give possession by the stated date to allow the contractor to start work. This is usually 2 weeks after contract award. The contractor must then commence and diligently proceed with the works to the
This document discusses site possession in construction contracts. It begins by defining site and possession. It then discusses the contractor's right to enter the site and occupy it from the date of possession until completion. The contractor must be given reasonable possession of the site to carry out the works. The document outlines the process for site possession, including the letter of acceptance, fixing the date for possession, and the contractor's obligations after taking possession. It also discusses delays in giving possession, the contractor's options, and conditions that must be met before commencing work such as providing insurance documents. Overall, the document provides an overview of site possession procedures and the contractor and employer's obligations regarding possession of the construction site.
The document proposes a dispute resolution process for section 106 planning obligations in the UK. It outlines:
1) A process where if obligations are not agreed upon within a set time, any party can request a person be appointed to help resolve outstanding issues and make a report with recommendations.
2) The appointed person would have qualifications determined by regulations and a limited time period to issue a report after parties engage in the process.
3) The report would make recommendations on agreed obligations and disputes, and parties would have a short time after to complete obligations before an application is refused.
This document summarizes construction details related to active construction projects in Florida, including construction contracts, major transportation projects, and general construction operations. It provides information on construction equipment requirements, experimental equipment approval processes, mobilization and maintenance of traffic procedures, and erosion control measures to prevent water pollution during construction activities. Temporary work structures, detour operations, and prevention of erosion and water pollution are also addressed at a high level.
In our first planning club of 2017 we covered:
• formation and use of Section 106 obligations and conditions
• a look at recent changes to permitted development rights
• challenges to planning decisions, including judicial review and appeals.
This article describes in a nut shell, the changing attitude of Oil and Gas
companies towards innovative drilling technologies in the down turn, some of the
important innovations in drilling technologies and its relevance to upstream oil and
gas, the pace of adoption of innovative drilling technologies in the upstream oil and
gas and the need for an optimistic future outlook.
Body corporate-and-community-management-act-1997-qldMark Game
The document discusses how the Body Corporate and Community Management Act 1997 (Qld) affects contracts for the sale of proposed lots in a community titles scheme. Key points include:
- Contracts will include an implied sunset date by which settlement must occur, generally 5.5 years from entering the contract.
- Sellers must make certain disclosures to buyers, including a disclosure statement and plan providing details about the scheme, contributions, by-laws, and more.
- Buyers may be entitled to terminate the contract if disclosures are inaccurate or misleading, or if settlement does not occur by the sunset date.
The document discusses contract payments and variations for a construction management and supervision training program. It defines contract payments, advance payments, interim payments, final certificates, and retention. It describes the authority levels of the engineer, engineer's representative, and employer for approving payments. It also defines what constitutes a variation, references the relevant ICTAD documents for variations procedures, and outlines the authority and process for approving variations, including NWSDB's procedure.
The document provides information on the redevelopment process for societies residing in old buildings located in prime areas. It discusses key considerations and steps societies should take before opting for redevelopment, including getting a structural audit report, circulating the report to members, obtaining written consent from members, and carefully selecting a developer. The document also outlines advantages like additional area and modern amenities, and disadvantages like disruption and increased maintenance costs. Overall, it emphasizes the importance of transparency, legal agreements, and following due process to ensure a successful redevelopment.
Trenchless technologies comparing thrust boring with horizontal directional ...Tobiloba Omitola
Thrust boring and horizontal directional drilling (HDD) are trenchless construction methods for installing underground infrastructure with minimal surface disruption. Thrust boring involves drilling a borehole and inserting a steel casing simultaneously using an auger drill head. It is unsteerable. HDD involves drilling a steerable pilot bore, reaming it to size, and pulling the pipeline back through. Key factors in selecting between the two methods include soil conditions, required accuracy, and ability to steer around underground obstacles. Thrust boring is best for stable soils while HDD allows for navigation and is suitable for longer distances and avoiding existing utilities. Both methods seek to minimize environmental and community impacts compared to traditional trenching.
This ordinance amends the Georgetown/Scott County Subdivision & Development Regulations regarding environmentally sensitive areas like sinkholes. It establishes new definitions and requirements for identifying, studying, and mitigating potential impacts of development on sinkholes, cave areas, rock formations, steep slopes, and other environmentally sensitive features. Developers must provide analysis and documentation of such areas, designate non-buildable zones, and implement measures to protect features and offset development impacts, as determined by geotechnical engineers and reviewed by the Planning Commission.
Here are the key points the Site Agent should make in support of the claim:
- Clause 2.2.1 of the GCC allows for claims due to adverse physical conditions that could not reasonably have been foreseen by an experienced contractor.
- The recent flooding was an adverse physical condition - i.e. it made execution of the works more difficult and expensive.
- As flooding is not normally expected on this site, an experienced contractor could not reasonably have foreseen this event.
- Records have been kept of the delays and additional costs incurred due to dealing with the effects of the flooding.
- An extension of time is required to account for the delays caused. Payment is also due for the additional costs incurred
This document outlines an agenda for a two-day seminar on general conditions of contract for construction works presented by Zaathi Engineers & Project Managers.
Day one will cover claims, including contractor and employer claims, justification of claims, handling procedures, validity, and adjudication. It will also discuss claim disputes, including definitions, notices, and resolution through amicable settlement, adjudication, arbitration, or court proceedings.
Day two will involve dividing participants into groups to analyze case studies on the general conditions of contract, with groups presenting the facts of the case, relevant contract provisions, discussion, and conclusions. Sessions will address time extension claims, including causes, obstacles, required information in claims, and examples of concurrent
This document outlines the approval process and requirements for subdivision plans, building designs, and housing projects in the Philippines. Developers must secure approval from local governments or regulatory boards by submitting preliminary plans, development plans, engineering plans, and other documents signed by licensed professionals. Plans will be evaluated for compliance with standards before permits are approved. Subdivision plans also require a verification survey and approval after development plans are approved.
Hydraulic Fracturing Understanding well constructionAndy Varoshiotis
The document discusses the key stages and activities involved in well construction, including:
1) Planning and preparation which involves acquiring leases, permits, and preparing the site.
2) Drilling which involves mobilizing rigs and equipment, drilling the surface and intermediate holes, and drilling to total depth while collecting samples.
3) Casing and cementing which protects groundwater and involves installing production casing.
4) Completion and stimulation which involves installing permanent infrastructure, perforating reservoirs, and stimulating production. Site footprint is then reduced after equipment is removed.
1Introduction to Petroleum Engineering Prepared by Dr MinoAnastaciaShadelb
1
Introduction to Petroleum Engineering Prepared by Dr Minou Rabiei
PTRE 201
Introduction to Petroleum Engineering
Drilling Preliminaries
1
Introduction to Petroleum Engineering Prepared by Dr Minou Rabiei
Lecture Outline
2
• Phases in an oilfield life cycle
• Different types of wells drilled in each phase
• An overview of the activities before drilling operations start
• National and international agreements involved in drilling projects
• Governmental regulations
2
Introduction to Petroleum Engineering Prepared by Dr Minou Rabiei
1. Exploration: Involves geological, geochemical and geophysical surveys
2. Appraisal: Preliminary development planning, feasibility studies
3. Development: Capital-intensive investments for operational infrastructure
4. Production: Starting to produce hydrocarbon
5. Abandonment: Decommissioning of facility installations
Oilfield Life Cycle
3
Introduction to Petroleum Engineering Prepared by Dr Minou Rabiei
• Geoscientists predict where the oil and gas occur.
– Geology: Structural and stratigraphic studies
– Geochemistry: Chemistry of petroleum and its sources
– Geophysics: Gravity, magnetic and seismic methodologies
• Existence of a working petroleum system is proved.
– Preliminary business and economic planning
– Define the optimal drilling location
• Drilling starts after all
» geological,
» economic,
» political and
» environmental
conditions are considered and evaluated.
Exploration Phase
4
3
Introduction to Petroleum Engineering Prepared by Dr Minou Rabiei
• WildCat Wells
– Drilled in an unexplored and unproven area Might be “Dry Hole”
• Exploratory wells
– Assess if a prospect comprises commercial amounts of hydrocarbon
• Appraisal (step out, delineation) wells
– Determine the size of the field
– Assess the viability of the reservoir
• Developmental wells
– Drilled in the known extent of the field to produce the hydrocarbon
• In-fill wells
– Drilled within the original drilled well patterns
Well-Type Classification
5
Introduction to Petroleum Engineering Prepared by Dr Minou Rabiei
• The most expensive component in exploration and field development.
• A multidisciplinary project:
– Operating company
– An outside drilling contractor
– One or more service companies
• Health, safety and environmental (HSE)
Drilling Engineering Group Activities:
– Detailed well design, drilling rig selection
– Contractor evaluation and bid requests
– Risk assessment
– Ensuring safe, economic and on schedule operations
Drilling Operations
6
4
Introduction to Petroleum Engineering Prepared by Dr Minou Rabiei
• In most countries, all mineral resources belong to the government
• In the United States and parts of Canada, private land has two separate ownerships:
– Surface rights owner
• Can build a house, ranch, or farm on the land
– Mineral rights owner
• Can explore for and produce the gas and oil found on their land
Land Rights
7
Introduction ...
The document outlines the rules for registration of contractors with the Central Public Works Department of India, including the eligibility criteria, categories and classes of enlistment, and process for changes to registration details. It defines terms like category, class, and contractor. It also provides guidelines for facilitating unemployed engineers and architects as well as retired government employees to register.
CE 444 Contracts and SpecificationsAssignment 7 - Conduct a 95MaximaSheffield592
This document provides the scope of work for repairs to sill plates on nine road closure structures in East Grand Forks, Minnesota. Key details include:
- Repairs must fill voids under existing sill plates and replace sections of steel sill plates with concrete.
- Submittals such as a work plan, safety plan, repair plan, and traffic control plan are required before starting work.
- Concrete mix design must achieve a minimum strength of 5,000 psi and water-cement ratio of no more than 0.40.
- Work must be completed by December 1 for some repairs and June 1 for others.
- Traffic control is needed to allow one lane to remain open when working on busy
Safeguarding Against Financial Crime: AML Compliance Regulations DemystifiedPROF. PAUL ALLIEU KAMARA
To ensure the integrity of financial systems and combat illicit financial activities, understanding AML (Anti-Money Laundering) compliance regulations is crucial for financial institutions and businesses. AML compliance regulations are designed to prevent money laundering and the financing of terrorist activities by imposing specific requirements on financial institutions, including customer due diligence, monitoring, and reporting of suspicious activities (GitHub Docs).
सुप्रीम कोर्ट ने यह भी माना था कि मजिस्ट्रेट का यह कर्तव्य है कि वह सुनिश्चित करे कि अधिकारी पीएमएलए के तहत निर्धारित प्रक्रिया के साथ-साथ संवैधानिक सुरक्षा उपायों का भी उचित रूप से पालन करें।
Indonesian Manpower Regulation on Severance Pay for Retiring Private Sector E...AHRP Law Firm
Law Number 13 of 2003 on Manpower has been partially revoked and amended several times, with the latest amendment made through Law Number 6 of 2023. Attention is drawn to a specific part of the Manpower Law concerning severance pay. This aspect is undoubtedly one of the most crucial parts regulated by the Manpower Law. It is essential for both employers and employees to abide by the law, fulfill their obligations, and retain their rights regarding this matter.
2018 10-23-pbs duck lunch presentation new aapl joa sem pbs v2
1. NEW ORLEANS | LAFAYETTE | BATON ROUGE | HOUSTON
The New AAPL FORM 610-2015
We swear it’s not an ugly duckling
Sam Masur & Paul Simon
Duck Lunch 2018
3. • Introduction
• Generally – how new?
• Key changes – improvements
• Others: imperfect progress -> future issues?
• Unresolved issues – (lack of) fit with Louisiana law
Agenda
4. Agenda
• Introduction
• Generally – how new?
• Key changes – improvements
• Others: imperfect progress -> future issues?
• Unresolved issues – (lack of) fit with Louisiana law
5. • AAPL has created a new form 610 JOA
• Previous version from 1989—almost 20 years
Introduction – We have a new form JOA!
6. • Recent court
decisions – mainly in
Texas
• Industry changes
……..……………
• Better reflect
industry practice
• Technology changes
• Progress is good
Why do we have a new form JOA?
Factors Examples
• Reeder – gross neg for all activities
• Seagull v. Eland – WI assignor liability
for future costs
• Horizontal drilling; no separate
completion election
• Operator can handle suits; Non-
owning operator
• Email for notice
• Art. XVI prevails; parties who refuse
to sign
7. • If no, not abnormal – same happened with 1989 Form
–1990-92, rarely used
–1993-94, became common
• By that schedule:
– 2019, next year – will begin to be used
– 2020 – will become common
Is anyone here using it?
Our message
• It’s not an ugly duckling
• Can use – most changes good
8. Agenda
• Introduction
• Generally – how new?
• Key changes – improvements
• Others: imperfect progress -> future issues?
• Unresolved issues – (lack of) fit with Louisiana law
9. Similar to 1989 form Changes?
Newish (1/2): Minor changes from 1989
• Same structure
• Table of contents virtually
identical
• Mainly improvement –
modest but real
• Some improvements, but
could create future issues
• Not panacea:
–some issues unresolved
–Especially for Louisiana
• Do you use the 1989 form?
• If yes, you’ll recognize and
be comfortable with this
10. • Committee:
– Formed & first meeting November 2011
– Nine (9) members, national, lawyers and landmen
• Used 1989 Form as template:
– not broke, don’t fix
– Changes only where “absolutely necessary”
• Consensus – Only changed if national consensus
• Proposal – Generated proposed revision,
– reviewed extensively with peers before finalizing
Newish (2/2): Reflects conservative and
deliberative process of committee
11. Agenda
• Introduction
• Generally – how new?
• Key changes – improvements
• Others: imperfect progress -> future issues?
• Unresolved issues – (lack of) fit with Louisiana law
12. Key Improvements (1/7): Horizontal drilling
The Biggest & most important change
• Main impetus for new JOA Form
• New horizontal techniques of shale
plays not accommodated by ‘89 Form
– New: not in 1989 -> not in 1989 Form
Shale, its unique drilling techniques
Tech: long laterals, fracking
• Legal, land & regulatory, has changed:
– huge drilling blocks, rig contracts
– changes in leasing & pooling.
• Industry
changed
• Law, legal
practice with
• JOA Form not
– getting
outdated
13. Displacement shall have the same meaning as
defined by the state regulatory agency having
jurisdiction over the Contract Area, in the absence of
which, the term shall otherwise mean the length of a
Lateral.
Displacement
14. When used in connection with a Horizontal Well,
Drillsite shall mean (i) the surface hole location, and
(ii) the Oil and Gas Leases or Oil and Gas Interests
within the Drilling Unit on or under which the
wellbore, including the Lateral, is located.
Drillsite
15. Extension or Extend shall mean an operation related to a
Horizontal Well whereby a Lateral is drilled in the same
Zone to a Displacement greater than (i) the Displacement
contained in the proposal for such operation approved by
the Consenting Parties, or (ii) the Displacement to which
the Lateral was drilled pursuant to a previous proposal.
If an Operator desires to Extend the Lateral beyond the
original proposal, upon approval of the designated
percent of parties, the Extension Operation may be
conducted and is binding on all Consenting Parties – in
other words those who object are dragged-along in the
Extension.
Extension Operations
16. Horizontal Rig Move-On Period shall mean the
number of days after the date of rig release of a
Spudder Rig until the date a rig capable of drilling a
Horizontal Well to its Total Measured Depth has
moved onto location.
Horizontal Rig Move-On Period
17. Horizontal Well shall have the same meaning as the
term defined by the state regulatory agency having
jurisdiction over the Contract Area, in the absence of
which the term shall mean a well containing one or
more Laterals which are drilled, Completed or
Recompleted in a manner in which the horizontal
component of the Completion interval (1) extends at
least one hundred feet (100’) in the objection
formation(s) and (2) exceeds the vertical component
of the Completion interval in the objective
formation(s).
Horizontal Well
18. Lateral shall mean that portion of a wellbore of a
Horizontal Well between the point at which the
wellbore initially penetrates the objective Zone and
the Terminus.
Lateral
19. When used in connection with a Horizontal Well, Plug
Back shall mean an operation to test or Complete the
well at a stratigraphically shallower Zone in which the
operation has been or is being Completed and which
is not in an existing Lateral.
Plug Back
20. When used in connection with a Horizontal Well,
Sidetrack shall mean the directional control and
deviation of a well outside the existing Lateral(s) so
as to change the Zone or the direction of a Lateral
from the approved proposal (unless done to
straighten the hole or drill around junk in the hole or
to overcome other mechanical difficulties).
Sidetrack
21. Spudder Rig shall mean a drilling rig utilized only for
drilling all or part of the vertical component of a
Horizontal Well; (a rig used only for setting conductor
pipe shall not be considered a Spudder Rig).
Spudder Rig
22. Terminus shall have the same meaning as the term
defined by the state regulatory agency having
jurisdiction of the Contract Area, in the absence of
which, the term shall mean the furthest point drilled
in the Lateral.
Terminus
23. Total Measured Depth, when used in connection
with a Horizontal Well, shall mean the distance from
the surface of the ground to the Terminus, as
measured along and including the vertical
component of the well and Lateral(s).
When the proposed operation(s) is the drilling of, or
operation on, a Horizontal Well, the terms “depth” or
“total depth” wherever used in this agreement shall
be deemed to read “Total Measured Depth”.
Total Measured Depth
24. For any Horizontal Well drilled under this agreement,
Operator shall drill such well to the Objective Zone(s)
and drill the Lateral in the Zone(s) to the proposed
Displacement, unless drilling operations are terminated
pursuant to Article VI.G (impenetrable substance or
condition in the hole renders further operations
impractical) or Operator deems further drilling is neither
justified nor required.
The Operator may now terminate horizontal drilling
operations if it deems further drilling is neither “justified
nor required.” This provision appears to increase the
discretion of the Operator.
Drilling Obligation for a Horizontal Well
25. Initial Well. Owner shall commence the drilling of the Initial Well at the following location (if a
Horizontal Well, surface and Terminus/Termini of the Lateral(s)).
Subsequent Operations. If any party desires to drill any well other than the Initial Well, or if any
party should desire to Rework, Sidetrack, Deepen, Recomplete or Plug Back a dry hole or a well no
longer capable of producing in paying quantities in which such party has not otherwise
relinquished its interest in the proposed objective Zone, the party desiring to drill, Rework,
Sidetrack, Deepen, Recomplete or Plug Back such a well shall give a written proposal of the
operation to the parties who have not otherwise relinquished their interest in such objective Zone
under this agreement specifying as relating to a Horizontal Well: (1) that the proposed operation is
a Horizontal Well operation; (2) include drilling and Completion plans specifying the proposed: (i)
Total Measured Depth(s), (ii) surface hole location(s), (iii) Terminus/Termini, (iv) Displacement(s),
(v) utilization and scheduling of rig(s) (Spudder Rig, drilling and Completion), and (vi) stimulation
operations, staging and sizing; and (3) estimated drilling and Completion costs as set forth in a AFE.
The parties to whom such a notice is delivered shall have thirty (30) days after receipt of the notice
within which to notify the party proposing to do the work whether they elect to participate in the
costs of the proposed operation.
Initial Well Description
and Subsequent Operation Proposals
26. If, during actual drilling operations on the Lateral and prior to reaching the
Displacement specified in an approved proposal for a Horizontal Well (the
“Approved Displacement”), Operator desires an Extension of the Lateral
more than _____% (measured in feet) beyond the Approved
Displacement, Operator shall give the Consenting Parties written notice of
such intent to Extend, together with the estimated costs, not less than 24
hours before Operator estimates reaching the Approved Displacement.
Unless at least ____% interest of the Consenting Parties provide written
notice of their consent to the Extension within 48 hours of receipt of such
notice, Operator shall not Extend the Lateral beyond the Approved
Displacement and will proceed with Completion in accordance with the
lateral approved proposal.
Failure of a Consenting Party to respond to such notice shall be deemed a
rejection. If ___% interest of the Consenting Parties or more consent, the
Extension shall be deemed approved and binding upon all Consenting
Parties.
Extensions and Drag Along Participation
27. a. Spudder Rig in Approved Well Proposal. If an approved Horizontal Well proposal provides
that a Spudder Rig shall be utilized, and Operator desires to extend the proposed Horizontal
Rig Move-On Period, Operator may obtain one or more extensions, each for a period of
time not to exceed ___ days only upon notice and the affirmative vote of not less that ___%
interest of the Consenting Parties to the drilling of the proposed well.
b. Spudder Rig Not in Approved Well Proposal If an approved Horizontal Well proposal does
not provide that a Spudder Rig may be utilized, and Operator subsequently desires to utilize
a Spudder Rig, Operator may utilize a Spudder Rig upon notice to the Consenting Parties and
the affirmative vote of not less than ___% in interest of the Consenting Parties.
c. Failure to meet Horizontal Rig Move-On Period. If a rig capable of drilling a Horizontal Well
to its Total Measured Depth has not commenced operations within the Horizontal Rig Move-
On Period, or any approved extension(s) thereof, unless ___% in interest of the Consenting
Parties agree to abandon the operation, Operator shall re-propose the well in the manner
provided in Article VI.B. Any party who was a Non-Consenting Party to the original drilling
proposal shall be entitled to a new election.
Spudder Rigs - Delays in Drilling Lateral Wells
Must be Approved by Consenting Parties
28. If multiple Horizontal Wells are drilled or proposed
to be drilled from a single pad or location, the costs
of such pad or location shall be allocated, and/or
reallocated as necessary, to the Consenting Parties of
each of the wells thereon.
Multi-Well Pad Costs
29. Without the consent of all parties, no well shall be
drilled, Deepened or Sidetracked, except any well drilled,
Deepened or Sidetracked pursuant to the provisions of
Article VI.B.2. of this agreement. Consent to the drilling,
Deepening or Sidetracking shall include:
All necessary expenditures for the drilling, Deepening or
Sidetracking, testing, Completion and equipping of the
well, including tankage and/or surface facilities.
Horizontal Well Completion
(No Separate Completion Election)
30. Key (2/7): Exculpatory clause, prudent O
O shall conduct its activities under [K]
as a reasonably prudent oper, in a
good and workmanlike manner … in
accordance w/ good oilfield practice,
and … applicable law…
However, in no event shall it have any
liability as O to the other parties for
losses sustained or liabilities incurred
in connection with authorized or
approved operations under this
agreement except such as may result
from gross negligence or willful
misconduct.
New clause
1989: in no event shall it have any liability as Operator to the other
parties for losses sustained or liabilities incurred [] except such
as may result from gross negligence or willful misconduct
Analysis & Implication
• Response to Reeder*:
– all of O’s “activities” under JOA
covered: no breach of K claims
– v. Abraxas, etc., under 1982
• New: Rejects Reeder, adopts Abraxas
– only approved ops need gross neg
– not other contractual obligations
Good – New reflects risk to Operator
• Operations, downhole – neg nuts
–and not standard: IADC, MSAs
• Not so normal contractual activities–
higher not needed
31. Other improvements (3/7): Operator
Authority better matches practice
Mixed-bags (more later)
• Non-owner Operator
• Authority:
–to defend third-party
uninsured suits
–to make ordinary
pooling filings
• Not all WI execute—
treat as non-consent
• Update Exh. A
Clear wins
• Clarified rules of resignation, removal, successor
– separated Resignation v. Removal
– Successor vote – no 2-party deadlocks
– Operatorship not assignable nor forfeited
• Allow “deviations from approved proposals”
• Definitions: clarify – rework is a subsequent op
– new: “Workover” is routine maintenance
• Broadened routine maint. drag-along:
– workovers & artificial lift included
– not SWD wells, other ancillary facilities
• Title, Operator authority clarified: (i) landman
costs repaid, (ii) obtain cures, (iii) approve title
32. Operatorship is neither assignable nor forfeited except in
accordance with the provisions of Article V.
The Operator’s Assignee must now comply with the
voting mechanism in the agreement to claim
operatorship.
In its performance of services for the Non-Operators,
Operator shall be an independent contractor not subject
to the control or direction of the Non-Operators except
as to the type of operation to be undertaken in
accordance with the election procedures contained in
this agreement.
The Operator - Non-Assignment of
Operatorship & Independent Contractor
33. The successor Operator shall be selected by the
affirmative vote of one (1) or more parties owning
majority interest based on ownership as shown on
Exhibit “A”
The Assignee of an Operator is entitled to vote the
assigned interest.
In the event that such vote results in a tie, the candidate
supported by the former Operator or the majority of its
transferee(s), shall become the successor Operator.
Selection of Successor Operator
34. If Operator, in its reasonable judgment, deviates from an
approved proposal based upon information derived from
facts and circumstances determined subsequent to the
commencement of the operations relating to such proposal
(including, without limitation, revision of the originally
proposed Completion staging and design), such deviations in
and of themselves will not result in liability of the Operator to
the Parties.
This provision appears to greatly expand the discretion of the
Operator in that it permits the Operator to deviate from an
approved drilling and/or completion program.
Operator Deviations
From Approved Proposals
35. Workover shall mean routine maintenance and repair
work performed on a well but does not include a
Rework operation.
A Rework operation is proposed pursuant to the
subsequent operations provision and is subject to
non-consent penalty provisions.
A Workover operation is subject to a drag-along
provision, rather than a non-consent provision.
Workover
36. If requested by Operator, a party shall be responsible
for securing curative matter and pooling
amendments or agreements required in connection
with Leases or Oil and Gas Interests contributed by
such party; otherwise, Operator shall be responsible
for such activities.
Generally, the Operator will be responsible for
securing title opinions, curing title issues and
approving title. The title and curative costs are billed
to the joint account.
Title Examination
37. Others (4/7): Operations fixes, minor
Art. Change Analysis/Comment
• …
• VI.F
• VII.C
• VII.F
passim
• XIV.C
• Notify WI operations commenced
• Any party may propose to abandon
a non-economic well
• Advanced payments 30 days to pay
• Disproportionate taxes = “burden”
• “under this K”, not “on the K Area”
• Regulatory agencies:
–All now!, not just FERC & DOE
–Oper misinterprets rule? Liable
• “use reasonable efforts”
• Non-Consenting parties too;
practical effect?
• Was 15; only next month’s cost
• Borne by contributing party
• Needed: build facilities off area,
ops for other units on
• For proportionate part only,
– unless willful/gross neg
• No safe harbor…
• VII.D • Usury savings clause • For non-consent penalties
38. Others (5/7): Substantive & important
New provision Comments
Assignor &
Assignee
liability for
future
operation
costs
• Assignor: pre-transfer costs
– not liable: future ops it did
not consent to
– ops it did – jointly &
severally with Assignee
• Assignee liable – costs
incurred post-transfer
– w/ assignor, if its consent
– No assumption needed
• Improvement:
– Seagull bad
– Assignor liable, did not
consent to op – contra
JOA principles
• Assignee – can’t let off!
– Don’t need assumption if
reference in public records
• Q: P&A costs, when
incurred?
Before?
• Seemingly
same…
• Seagull, TX SC:
– Assignor liable
costs of later
ops
– Assignee not
liable absent
express
assumption
• Content required set forth
– Vertical or horizontal op
– Plans, incl depth,
locations, objective
– Rig plans, if stimulation
– Estimated costs – AFE
• Horizontal & vertical wells
• Improvement in principle –
– memorializing practice
– Reduces room for bad
faith or sharp practices
• We’ll see how courts apply
• Ambiguous! –
industry
practice not
reflected
• Required in
1989-H,
copied here
Content of
well
proposals
39. The transferee shall be jointly and severally liable
with its transferor for payment of its share of all
costs and expenses attributable to an approved
operation conducted hereunder in which its
transferor had agreed to participate.
Transferee of Interests Responsible for Costs
and Expenses of Transferor
40. Others (6/7): Substantive & minor
New provision Comments
Definitions • Added “Affiliate”
• “Consenting Party”
swallowed “Drilling Party”
• “Affiliate”: 2005 COPAS def
– “common control”
– 50% ownership
Before?
• Not defined,
ambiguous
• Duplicate,
confusing
• Non-Consenting parties:
– no access to sites &
records of that op
– Well accounting
• Good rule
• Consider whether to restrict
further, esp. re: invitees
•Access rightsNon-Consent
Parties –
limited
access
• “[A]ll burdens except
Subsequently Created
Interests”.
• Reflects Texas practice
• Better rule
• Was blank,
• Filled: lowest
% royalty in
Lease
Default
royalty owed
by WI
41. A Non-Consenting Party is not entitled to access to the well
location, information and reports relating to such non-consented
operation until the earlier of: full recoupment by the Consenting
Parties of the non-consent penalties, or 2 years following the date
the non-consented operation was commenced.
Thereafter, Operator shall promptly furnish such access,
information and reports upon receipt of a written request from the
Non-Consenting Party.
Prior to payout, a Non-Consenting Party shall be entitled to review
the joint account records pertaining to a non-consented operation
to the extent necessary to conduct an audit of the payout account.
Non-Consenting Parties’ Access
to Contract Area and Records
42. Other Improvements (7/7): Form & Style
• Scrivener’s guides/notes
– p. 2 – “Scribener’s Instructions”
– p. 18: Art. XV(E): “Conflict of Terms”, that Article XVI prevails
• Readability/formatting
– no more numbers on side
– spacing/formatting of paragraphs
• Clarified term “commencement of operations”, V.D.7(a)
– replaces cumbersome, potentially ambiguous
– ‘when spudded or date drilling operations are commenced’
• Preparer representation – form is Form 610-2015
– …and no changes except shown in strikethrough
– Reflects industry practice
nice to have memorialized
…potential source of conflict?
43. Notwithstanding anything in this agreement to the
contrary, in the event of any conflict between the
provisions of Articles I through XV of this agreement
and the provisions of Article XVI, if any, the
provisions of Article XVI, if any, shall govern.
Conflict Between Articles I – XV and the Special
Provisions of Article XVI
44. _________, who has prepared and circulated this
form for execution, represents and warrants that the
form was printed from and, with the exception(s)
listed below, is identical to the AAPL Form 610-2015
Model Form Operating Agreement, as published in
computerized from by AAPL. No changes,
alterations, or modifications, other than those made
by strikethrough and/or insertion and that are
clearly recognizable as changes in Articles ________,
have been made to the form.
Preparer Representations
45. Agenda
• Introduction
• Generally – how new?
• Key changes – improvements
• Others: imperfect progress -> future issues?
• Unresolved issues – (lack of) fit with Louisiana law
46. Each Email Notice shall clearly state that it
is a notice or response to a notice under
this agreement.
An Email Notice shall be deemed delivered
only when affirmatively acknowledged by
email reply from the receiving party.
Automatic delivery receipts issued,
without direct acknowledgement of the
Email Notice, are not evidence of Receipt
for purposes of this agreement.
If the receiving party fails … to
affirmatively acknowledge…, then Receipt
of the notice shall only be deemed to
have occurred when received … as
otherwise provided in the agreement.
Imperfect progress (1/4): Email Notices
• So close!
– allowing good
– reflects
practice
• Receipt rules?!?
– Not in your
control, can’t
rely on it
– Ruins it
• Modify to allow,
I do: standard
language
47. Imperfect (2/4): Operator’s new duties
New provision Benefit Issue
Update
Exhibit A,
parties’
interests
• Oper updates – reflect
assignments, fix mistakes
• Distributes, asks consent of
party if new interest
• No consent? Legal opinion
– Can change, and
– Conclusive – Wi must sue
• List useful
• Oper new
duty, not
new risk
• Clarity
what to do,
if do
conclusive
• To protect
neutral, cautious
• Some Os not…
then mixed bag.
• Small interests –
legal costs
• Pushes to suit
Before?
• No duty
• Operator
maintained
list on own
• Freedom,
but no
clarity, risk
• Takes defense of non-
insured claims
• WI – can opt-out, 14 days,
– owe share of defense costs
• Reflects
practice
• Practical
• Next slide discuss,
Sam
•Not in Op
authority
•Consent
each suit
Claims &
lawsuits
• Limited: record pooling
declarations & orders
– after notice to WI, who
can opt out
• Closer to
practice
• Helpful
•La. Conservation
practice missed
•Active role of
Operator
•No agency
•Art. IV.A –
Title, can
conduct unit
hearings
Agency to file
ordinary
course
pooling filings
48. If the amount required for settlement exceeds the
amount authorized in the agreement, Operator shall
promptly give notice to Non-Operators and Operator
shall assume and handle the claim or suit on behalf of all
parties unless, within 14 days after receipt of such
notice, a party gives notice to Operator and the other
parties of its affirmative election to assume and handle
the claim or suit on its own behalf, which assumption
and handling shall be done at said party’s own expense
and over and above said party’s proportionate share
chargeable to the joint account as hereinafter provided.
Claims and Lawsuits
49. The Operator shall own an interest in the Contract Area except as
provided in this Article V.A and subject to the provisions of Article V.B.5.
A non-owning operator may serve as Operator but, as a condition
precedent to serving as Operator, the non-owing operator and the Non-
Operators must enter into a separate agreement, or insert Article XVI
provisions to this agreement, to govern the relationship between them.
Unless such separate agreement or Article XVI provisions provide
otherwise, said non-owning operator shall be bound by all terms and
conditions of this agreement applicable to Operator.
The failure of a non-owning operator and Non-Operators to enter into
such a separate agreement or such Article XVI provisions shall disqualify
said non-owing operator from serving as O … [must designate WI owner]
Imperfect progress (3/4): Non-Owning Operator
• Normal: Operator aligned with WI – reimbursed, not paid, profit from WI
– Pays share of costs of operations, signs JOA, consent/proposal rights
• Now: allow, require agreement– no common rules, force parties to talk
50. Unless the parties have otherwise agreed, a non-owning
Operator may be removed at any time, with or without
cause, by the affirmative vote of parties owning a
majority interest based on ownership as shown on
Exhibit “A.”
If good cause for removal of such non-owning Operator,
exists, the non-owning Operator may be removed by the
affirmative vote of Non-Operators owning a majority
interest based on ownership as shown on Exhibit “A”
remaining after excluding the voting interest of any non-
operator who is an Affiliate of non-owning Operator.
Removal of Non-Owning Operator
51. Imperfect progress (4/4): not all execute
Improvement Partial improvement … only partial because issue
• New option:
– to treat non-
signatories like non-
consent parties
– Divide their interest
proportionately
among other WI
owners
• Before – Operator
could take all risk, get
all revenue.
– Now: that’s 1 of 2
options
• Partial improvement:
Oper can keep its
from preparing for
drilling of initial well
• Helpful to Operator:
– no longer out on
limb with costs
– Or having to wait
for everyone,
missing rig dates
• Only from funds prepaid
for Initial Well, already
received at termination
• Why only prepaid?
– all who executed?
• Incentives:
– reward malingering
late-payors?
– penalizes early payors
• At least: be cautious
paying early, advise
clients accordingly
52. In the event operations on a well shall be commenced without execution of this
agreement by all persons listed on Exhibit “A”, or in the event that subsequent to
the commencement of operations on the well previously unknown or undisclosed
persons owning working interests in a well are discovered, or both, the parties
executing the agreement agree to one of the following:
Option No. 1: Operator shall indemnify executing Non-Operators with respect to
all costs incurred for the well which would have been received by such person
under this agreement as if such person had executed the same and Operator shall
receive all revenues which would have been received by each such person under
this agreement as if such person had executed the same.
Option No. 2: The Operator shall advise all parties of the total interest of the
parties that have executed this agreement. Each party executing this agreement,
within forty-eight (48) hours after delivery of such notice, shall advise the
Operator of its desire to (i) limit participation, (ii) carry only its proportionate part
of non-executing persons’ interests, or (iii) carry it proportionate part of non-
executing persons’ interests together with all or a portion of its proportionate part
of any non-executing persons interests that any executing party did not elect to
take.
Failure of Parties to Execute the Operating
Agreement
53. Agenda
• Introduction
• Generally – how new?
• Key changes – improvements
• Others: imperfect progress -> future issues?
• Unresolved issues – (lack of) fit with Louisiana law
54. Louisiana exceptionalism – for future
• Form JOA, always been:
– poor fit with La. law & practice
– But nobody uses La. form OA
• Why? Two causes:
– Conservation practice –
mandatory unitization, active
role of operator
– Terminology
can’t redefine “common”
terms used everywhere else
but different here
Issue & Cause
• Conform to existing well spacing
rules, proposed wells must, VI.B.8
– 2015: or to exception already
approved
– Not practice in Louisiana
propose, drill, then get permit
Can’t do this under Form JOA
• Terminology – “Zone”
– Form: a stratum of earth w/ a
common accumulation of oil &
gas separately producible…
– La. – multiple pools in 1 Zone
Illustration