A Joint Operating Agreement, abbreviated as JOA, is an agreement between two or more operators where they collaborate to share their resources and expertise to explore, develop and produce hydrocarbons from multiple leasehold properties. It is one of the most important and commonly used agreements in the oil and gas industry. Introduction & Purpose The operating agreement establishes the overall structure and framework for conducting exploration and production operations and sharing the costs of such operations among the parties to the agreement. of the 1989 AAPL form of Joint Operating Agreement ("JOA") contains the following exculpatory clause: "Operator shall conduct its activities under this agreement as … Article V.A. Our 4-day, in-person Building your Foundation in Oil and Gas course is the ideal training! COPAS Accounting Procedure. As standardized industry forms, the Joint Operating Agreements and attached COPAS Accounting Procedures governing the Subject Wells are to be interpreted whenever reasonable as treating alike all those similarly situated, without regard to the parties' individual knowledge or understanding of the standard terms contained in the agreements. Per COPAS, "rates shall be adjusted as of the first day of April each year following the effective date of the agreement to which the accounting procedure is attached. Choose any webinar in the COPAS Energy Education Store. All operations on the leased lands within the AMI shall be governed by a mutually acceptable Joint Operating Agreement with, among other attachments, a COPAS Accounting Procedure. Any contract, agreement, Joint Venture, or other arrangement entered into by two or more businesses in which the operations and the physical facilities of a failing business are merged, although each business retains its status as a separate entity in terms of profits and individual mission.. For guidelines in the establishment of an appropriate overhead rate, see AG-23, Overhead Negotiation and Calculation, which is available from our Online Store & Publications. When the owner (farmor) of an oil and gas working interest agrees to assign an interest in a lease (called the farm-out area) to another party (farmee) in consideration of the farmee drilling a well or wells (farm-out wells) on the farm-out area, the farmor is said to have made a farm-out and the farmee has made a farm-in.Sometimes the farmee may be required to do more than drill a well, including performing geological and seismic studies or paying a cash consideration for past costs incurred by the farmor. Copas Overhead Adjustments; Joint Venture Review Compliance; Oil and Gas Audit Report; Recommendations; Reviewing Non-Participants; Operating Treatment of the Joint Interest Report; Oil and Gas Department Job Functions; Subsidiaries; Suspense Account; … 1962 was the base index year, and the first adjustment was issued for 1963. COPAS provides expertise for the oil and gas industry through the development of Model Form Accounting Procedures, publications, and education. I. COPAS ACCOUNTING PROCEDURES1 A. The said Joint Operating Agreement and Accounting Procedure is attached hereto as Exhibit ”B”. P.O. Recording the Operating Agreement. ACCOUNTING PROCEDURE However, each of the pre-printed A.A.P.L. Joint Operating Agreement. To get you started with Forms On-A-Disk, I recommend getting the following forms: the 1982 Joint Operating Agreement, the 1989 Joint Operating Agreement, the recording supplement, the gas balancing agreement (JOA610E) and the COPAS 2005. 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