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Compendium of Cases Construing the Model Form Operating Agreements

John R. Reeves, Proceedings of 52nd Annual Rocky Mountain Mineral Law Institute (2006)

The A.A.P.L. Form 610 Model Form Operating Agreement1 has been in use in the oil and gas industry in one form or another since 1956.2 The various versions of the Model Form Operating Agreement continue to be widely used. Reference to a joint operating agreement in the context of an oil and gas matter normally concerns one of the versions of the A.A.P.L. Form 610 Model Form Operating Agreement.
Based upon an empirical analysis, it appears that 25 years ago, there were relatively few cases dealing specifically with the A.A.P.L. Form 610 Model Form Operating Agreement. Within the last 15 years, however, there are a growing number of appellate decisions addressing the Model Form Operating Agreement. These cases have provided lawyers with some insight and guidance concerning the interpretation and application of the various versions of the A.A.P.L. Form 610 Model Form Operating Agreement.
The following article provides a comprehensive analysis of various court decisions that specifically address one of the versions of the A.A.P.L. Form 610 Model Form Operating Agreement. Section 11.02 begins with a brief historical accounting of the development of the A.A.P.L. Form 610 Model Form Operating Agreement. Section 11.03 provides an analysis of the general relationship created by the Model Form Operating Agreement between the designated operator and the nonoperators. The remainder