pjc-oil-and-gas-2022-lib

PJC 305.27

O IL AND G AS I NDUSTRY A GREEMENTS

PJC 305.27 Basic Question and Instructions on Breach of Joint Operating Agreement—Compliance Did Don Davis fail to comply with the joint operating agreement [ set forth provisions or conduct at issue, if appropriate ]? [ You are instructed that the joint operating agreement requires the operator to conduct operations [ insert appropriate standard of care as set forth in the JOA ].] [Insert additional instructions, if appropriate.] Answer “Yes” or “No.” Answer: _______________ COMMENT When to use. PJC 305.27 is appropriate to address contract compliance in the case of an alleged breach of a joint operating agreement (JOA). See also PJC 305.3, which generally addresses the question of contract compliance in the case of an alleged breach of contract. The operator’s standard of care and liability are determined by the specific language of the operating agreement at issue. Liability for breach within the scope of exculpatory provisions. If the alleged breach falls within the scope of the JOA’s exculpatory provision, an additional finding of either gross negligence or willful misconduct may be necessary to impose liability. See PJC 305.28.

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