Form AAPL 610-2015 Joint Operating Agreement Model Form was issued in response to technological and legal changes since the last form was updated in 1989. It may not be until 2020 that the 2015 version is fully adopted if it follows the model of the 1989 update. It is important that once you have purchased and downloaded your JOA form, you carefully read the instructions (especially the “revision balloon settings”) before working with the program. It might seem a little ridiculous to have all these editing balloons that would stand out on the side of the deal when you send it. You should also make sure that the text is entirely in black, unlike the standard colors of MS Word for the edited text. The AAPL 610 model agreement is by far the most common enterprise agreement commonly used in the oil and gas industry, so any other proposed joint enterprise agreement should, in my view, be immediately suspect. To fully understand the modern model of the oil and gas agreement, it helps to know a little about the history of the form, the common annexes, the things that should be paid attention to, as well as the standard practices used to work with it. Before 1956, there was no real modeling agreement. The parties to joint transactions had to enter into their own agreements to regulate the way an oil property was managed, which must have caused confusion and, in many cases, legal action. It was found that a standardized form was necessary and that the 1956 modelling agreement was born. It was not until 1977 that the form was significantly revised. Although the 1977 JOA was subject to significant revisions, a new revision took place in 1982 and remains widespread throughout the sector.
The last revision of the agreement was carried out in 1989, notably to include better bankruptcy protection (consequence of bankruptcy in the 1980s) and a strengthening of the operator`s language (“good thing” as opposed to “serious negligence”). It is rumoured that the AAPL is currently working on a new overhaul to better cope with the current horizontal drilling boom. Keep an eye here, or at the AAPL for news of its publication. The 1989 version of Form AAPL 610 could not predict these changes and was unable to take into account in advance some of the legal challenges that emerged during the industry`s maturity. 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. Several words and terms have new or advanced definitions and clarifications in the form of 2015. Most of the changes and new definitions were caused by the introduction of horizontal holes, as the previous version of the vertical drilling form was the only basis. To begin the forms on the hard drive, I recommend that you obtain the following forms: the 1982 Joint Enterprise Agreement, the 1989 Joint Enterprise Agreement, the Registration Supplement, the Gas Compensation Agreement (JOA610E) and COPAS 2005. It should start.
You can add additional forms to your library if necessary. This should set you up and be ready to start working with the AAPL Form 610 Model Form Operating Agreement.