Checklist for Joint Operating Agreements

CHECKLIST FOR JOINT OPERATING AGREEMENTS

- - FOR REFERENCE USE ONLY - -

PARTIES

ÿ  All parties are correctly identified and properly spelled.

ÿ  All parties are correctly identified as a corporation, partnership or individual.

RECITALS

ÿ  The recitals properly identifies how each party has an interest in the Joint Operating Agreement and a chain-of-title (recitals) is defined or attached as a Schedule.

DEFINITIONS

ÿ  The Dates are correct (Contract Date, Effective Date, AMI Dates, etc.).

ÿ  The Parties are defined by their full corporate names.

ÿ  The Lands, Rights and any Encumbrances are correct.

ÿ  The Petroleum Substances (Oil / Gas / Coalbed Methane) are properly specified.

ÿ  The Spacing Unit is properly defined, including any down spacing.

ÿ  The Title Documents are correctly identified as a valid registered or beneficial interest.

ÿ  The Title Documents clause provides for renewals, extensions etc. for all lease(s).

ÿ  The Schedules are properly listed and defined as being part of the Agreement.

ÿ  Additional Clauses: AMI / Seismic / Silent Partners (Trust Agreements) / Royalty Agreements, etc.

MAIN BODY

ÿ  Verify that each party has a valid registered or beneficial interest.

ÿ  Verify the initial Operator and that the name is spelled out correctly.

ÿ  Verify any encumbrances attached to the lands and how the parties are sharing the payment of the encumbrances.

ÿ  Verify the Area of Mutual Interest (AMI), if there is one and verify the correct dates.

ÿ  Verify that a supercede clause applies to supercede all previous agreements.

SIGNATORIES

ÿ  Counterpart Execution Pages are attached and the names are spelled correctly.

SCHEDULES

ÿ  Ensure the terms used in Schedule “A” are reflected in the body of the Agreement.

ÿ  Ensure the Lands, Rights, Formations and any Encumbrances are correct.

ÿ  Ensure Leases are verified, including the Lease number, Effective Date, Acreage, etc.

ÿ  Ensure all the Schedules as referenced in the Agreement are attached and labeled.

ÿ  Ensure that the CAPL and PASC electives are correct.

ÿ  Ensure that the CAPL and PASC electives are correct.

ÿ  Ensure that the 1993 CAPL Assignment Procedure is referenced and used.

ED COMMITTEE - JANUARY 2012