OF TITLE
3
1.
Failure of Title
3
2.
Loss by Non-Payment or Erroneous Payment of Amount Due
3
3.
Other Losses
3
V.
OPERATOR
4
A.
DESIGNATION AND RESPONSIBILITIES OF OPERATOR
4
B.
RESIGNATION OR REMOVAL OF OPERATOR AND SELECTION OF SUCCESSOR
4
1.
Resignation or Removal of Operator
4
2.
Selection of Successor Operator
4
C.
EMPLOYEES
4
D.
DRILLING CONTRACTS
4
VI.
DRILLING AND DEVELOPMENT
4
A.
INITIAL WELL
4-5
B.
SUBSEQUENT OPERATIONS
5
1.
Proposed Operations
5
2.
Operations by Less than All Parties
5-6-7
3.
Stand-By Time
7
4.
Sidetracking
7
C.
TAKING PRODUCTION IN KIND
7
D.
ACCESS TO CONTRACT AREA AND INFORMATION
8
E.
ABANDONMENT OF WELLS
8
1.
Abandonment of Dry Holes
8
2.
Abandonment of Wells that have Produced
8-9
3.
Abandonment of Non-Consent Operations
9
VII.
EXPENDITURES AND LIABILITY OF PARTIES
9
A.
LIABILITY OF PARTIES
9
B.
LIENS AND PAYMENT DEFAULTS
9
C.
PAYMENTS AND ACCOUNTING
9
D.
LIMITATION OF EXPENDITURES
9-10
1.
Drill or Deepen
9-10
2.
Rework or Plug Back
10
3.
Other Operations
10
E.
RENTALS, SHUT-IN WELL PAYMENTS AND MINIMUM ROYALTIES
10
F.
TAXES
10
G.
INSURANCE
11
VIII.
ACQUISITION, MAINTENANCE OR TRANSFER OF INTEREST
11
A.
SURRENDER OF LEASES
11
B.
RENEWAL OR EXTENSION OF LEASES
11
C.
ACREAGE OR CASH CONTRIBUTIONS
11-12
D.
MAINTENANCE OF UNIFORM INTEREST
12
E.
WAIVER OF RIGHTS TO PARTITION
12
F.
PREFERENTIAL RIGHT TO PURCHASE
12
IX.
INTERNAL REVENUE CODE ELECTION
12
X.
CLAIMS AND LAWSUITS
13
XI.
FORCE MAJEURE
13
XII.
NOTICES
13
XIII.
TERM OF AGREEMENT
13
XIV.
COMPLIANCE WITH LAWS AND REGULATIONS
14
A.
LAWS, REGULATIONS AND ORDERS
14
B.
GOVERNING LAW
14
C.
REGULATORY AGENCIES
14
XV.
OTHER PROVISIONS
14
XVI.
MISCELLANEOUS
15
Table of Contents
14
A.A.P.L. FORM 610 - MODEL FORM OPERATING AGREEMENT - 1982
OPERATING AGREEMENT
THIS AGREEMENT, entered into by and between
LONGBOW, LLC
, hereinafter designated and
referred to as "Operator", and the signatory party or parties other than
Operator, sometimes hereinafter referred to individually herein
as "Non-Operator", and collectively as "Non-Operators".
WITNESSETH:
WHEREAS, the parties to this agreement are owners of oil and gas leases and/or
oil and gas interests in the land identified in
Exhibit "A", and the parties hereto have reached an agreement to explore and
develop these leases and/or oil and gas interests for the
production of oil and gas to the extent and as hereinafter provided,
NOW, THEREFORE, it is agreed as follows:
ARTICLE I.
DEFINITIONS
As used in this agreement, the following words and terms shall have the meanings
here ascribed to them:
A. The term "oil and gas" shall mean oil, gas, casinghead gas, gas condensate,
and all other liquid or gaseous hydrocarbons
and other marketable substances produced therewith, unless an intent to limit
the inclusiveness of this term is specifically stated.
B. The terms "oil and gas lease", "lease" and "leasehold" shall mean the oil and
gas leases covering tracts of land
lying within the Contract Area which are owned