As of 2021, the AAPL Model Form Operating Agreement has become a staple in the world of oil and gas exploration and production, a critical and complex industry in the United States. The AAPL Model Form Operating Agreement was first established and introduced in 1956 under the American Association of Professional Landmen (AAPL), which operates as a collective body for landmen in the United States.
An operating agreement, in this context, is a legal document that sets forth the rights, obligations, and responsibilities of oil and gas companies or individuals that have decided to work together to explore and produce oil and gas. The AAPL Model Form Operating Agreement is designed to serve as a template that companies or individuals can use and modify to meet their specific needs, as well as to create consistency in the industry.
The AAPL Model Form Operating Agreement was last updated in 2009 and contains provisions that address key issues in oil and gas exploration and production such as rights to drill, the allocation of costs and expenses, and procedures for resolving disputes among the parties involved.
One of the most prominent features of the AAPL Model Form Operating Agreement is the joint operating committee (JOC). The JOC is established to permit the parties to act as a group when making decisions and to share costs and benefits for certain operations, such as drilling a well. The JOC also has the power to hire and fire operators, approve decisions, and execute contracts on behalf of the parties involved.
The AAPL Model Form Operating Agreement 2009 also includes provisions for the protection of the environment. It sets forth the responsibilities of each party to comply with environmental laws, regulations, and standards. It also establishes procedures for the management of waste materials, including the disposal of hazardous waste.
To summarize, the AAPL Model Form Operating Agreement 2009 is an essential document in the oil and gas exploration and production industry. It provides a template that companies and individuals can use and modify to fit their specific needs. The agreement is designed to create consistency and fairness among parties while also addressing critical issues such as drilling rights, cost allocation, dispute resolution, and environmental protection. As such, it is a valuable resource for anyone involved in the oil and gas exploration and production industry.