Skip to content

menu

HomeAboutServicesContact
Gray Reed logo

Energy & the Law

1989 model form operating agreement

Subscribe to 1989 model form operating agreement via RSS

Operator Can’t Recover Drilling Costs For Affiliate’s Expensive Rig

By Charles Sartain on February 3, 2015
Posted in Contract Disputes, Operating Agreements

Co-author Alexandra Crawley

In Elm Ridge Exploration Co., LLC v. Engle we are reminded of a little-used provision in the 1989 Model Form Operating Agreement. Article VI.D.1 allows the operator to use its own equipment, but his charges may not exceed prevailing rates in the area, and the rates must be agreed to in writing…

Non-Operators Shake Off the JOA Tar Baby

By Charles Sartain on November 21, 2013
Posted in Operating Agreements

Co-author Andrew Neal

Non-operators have had a lot in common with Br’er Rabbit ever since 2006, when the Texas Supreme Court surprised the industry in Seagull Energy E & P, Inc. v. Eland Energy, Inc. Their tar baby is the ruling that, absent a release from the operator a working interest under a JOA who…

Operator Not Liable for Breach of JOA – Louisiana Version (Kind of)

By Charles Sartain on November 15, 2012
Posted in Operating Agreements

It’s deju vu all over again in Chesapeake Operating, Inc. v. Sanchez Oil & Gas Corp. More accurately, it is a variation of Reeder v. Wood County Energy, LLC, et al. applied to Louisiana operations. For the impact of the exculpatory clause protecting the operator from liability in the 1989 Model Form JOA, see …

Operator Not Liable for Breach of 1989 Model Form JOA

By Charles Sartain on September 6, 2012
Posted in Operating Agreements

Co-authored by Marty Averill

If you are a non-operator under the 1989 Model Form Operating Agreement, pay close attention to Reeder v. Wood County Energy, LLC, et al.  The Texas Supreme Court ruled that the operator is not liable to non-operators for breach of the agreement except in the cases of gross negligence or willful…

About Charles Sartain

I have been helping clients of all types resolve their commercial disputes for most of my 35 years as a lawyer. Of the many industries in which I have worked, the energy business is the most fascinating…More

Stay Connected

Subscribe to this blog via RSS Charles Sartain on Linkedin

Topics

Archives

Recent Posts

  • It’s Been Decided, In Texas the Mineral Lessee, Not the Surface Owner, Owns Produced Water
  • Ambiguity Frees Louisiana Royalty Owner From Post-Production Costs
  • How Did the 2025 Texas Legislature Address Energy?
  • Texas Operator Protected From Royalty Payment Error
  • Two Words = Six Million Dollars: SCOTX Reverses Trial Court That Added Words to a Gas Transportation Agreement

Gray Reed Blogs

  • Tilting The Scales
  • M&A Insights
  • Texas Construction Law Blog
  • Texas Employer Handbook
  • Texas Tax Talk

Energy & the Law

Gray Reed logo
Subscribe to this blog via RSS Charles Sartain on Linkedin
Privacy-PolicyDisclaimer

About Our Firm

A full-service Texas law firm with offices in Dallas, Houston and Waco, Gray Reed provides legal services to companies ranging from start-up to Fortune 500 as well as high net worth individuals. Gray Reed attorneys assist clients with a myriad of legal issues including commercial litigation, corporate transactions, oil and gas, tax planning and litigation, real estate, construction, healthcare, trusts and estates, employment law, family law, intellectual property and bankruptcy. For more information, visit www.grayreed.com.

Read More...
Copyright © 2025, Gray Reed All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo

We use cookies on our website to enhance your browsing experience and analyze site traffic. By clicking “Accept,” you consent to the use of all cookies and agree to our privacy policy.

AcceptReject