Joint Operating Agreements (JOAs) are often used by operators in the oil and gas industry to share some of the risks and expenses of oil and gas exploration. Whenever there is a disagreement between the operators the JOA dispute could potentially end up in court or arbitration. The current decline in oil prices is having a major impact on Texas operators who are involved in JOAs. The forum where these disputes are adjudicated will often depend either on the location of the operations or the terms of the JOA. There are also some disputes that can be resolved through international arbitration. Many of the operations in Texas use the American Association of Professional Landmen (AAPL) JOA forms. Disputes are going to continue to be on the rise in the indefinite future as the oil market remains volatile.
See Angela Neville, Dealing With Disputes Over Joint Operating Agreements, Texas Lawyer, February 12, 2016.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
