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It also provides how consent is granted and manifested for subsequent operations.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"How does a party proceed when it receives a proposal for a subsequent operation?",{"text":68,"@type":64},"The chapter outlines the determination of the contract area, notice of the proposal, who may issue it, and how multiple proposals are handled. It then explains election rights, including responses to the proposed subsequent operation.",{"name":70,"@type":61,"acceptedAnswer":71},"How are costs handled for subsequent operations when some parties do not consent?",{"text":72,"@type":64},"The chapter describes commitments to pay costs of proposed subsequent operations and special remedies to protect the operator who incurs those costs for the joint account. It also covers recoupment concepts and enforcement against non-consenting parties, including related accounting and bankruptcy 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Law,Paul M.Hebert Law Center,Louisiana State UniversityBaton Rouge,Louisiana  \n## Synopsis\n\n§7.01  \nIntroduction  \n[1]Preface  \n[2]Law of Co-ownership or Co-tenancy  \n[3]Operating Agreements  \n[4]Rationale for a“Subsequent Operations Clause”  \n## §7.02The Proposal to Conduct a Subsequent Operation\n\n[1]Determination of Contract Area  \n[2]Notice of Proposal to Conduct a Subsequent Operation  \n[3]Who May Issue a Proposal to Conduct an Operation  \n[4]Multiple Proposals to Conduct a Subsequent Operation  \n[5]“Limitation on Expenditure Clause”  \n[6]Content of Notice of Proposed Subsequent Operation  \n[7]Proper Characterization of the Proposed Operation  \nThe Election to Participate or Not in a Subsequent Operation  \n## §7.03\n\n[1]Election in Response to Notice of Proposed SubsequentOperation  \n[2]Right of a Party to Change its Initial Election in Response to  \nLouislana state Universy  \n1AWLBRARY  \nNotice of Proposed Subsequent Operation  \n[3]Implied Duty to Participate in Proposed Subsequent Operation  \n## §7.04The Conduct o the Subsequent Operation\n\n[1]Commencement of Proposed Subsequent Operation  \n[2]“Jumping the Gun”—Premature Commencement of ProposedSubsequent Operation  \n[3]Deviation from Scope of Proposed Subsequent Operation  \n[4]Modification of Operation Being Conducted  \n## §7.05Responsibility for Costs of the Subsequent Operation\n\n[1]Commitment to Pay Costs of Proposed Subsequent Operation  \n[2]Special Remedies to Protect the Operator Who Incurs Costs forthe Joint Account  \n[3]Relinquishment of Interest  \n[4]Recoupment of Costs of the Subsequent Operation  \n[a]  Preface  \n[b]  “Subsequently Created Interests”  \n[c]  Gas Marketing  \n[d]Non-Consent Recoupment Factor  \n[5]Accounting for Non-Consent Account  \n[6]Enforcement of Non-Consent Account Against Third Parties  \nAcquiring from a Non-Consenting Party  \n[7]Enforcement of Non-Consent Recoupment Factor in Bankruptcy  \n[8]Personal Responsibility of a Consenting Party for the Paymentof Royalties to Lessor of a Non-consenting Party  \n## §7.06Miscellaneous Issues Concerning the Subsequent Operation\n\n[1]Alternate Arrangements Concerning a Non-Consent Election  \n[2]Proposal of a Subsequent Operation Before Discharge orSatisfaction of Outstanding Account  \n## §7.01 Introduction\n\n[1]Preface  \nThis article examines the conditions pursuant to which parties customarilyagree to develop mineral leases which are owned by more than one personor entity,pursuant to agreements customary in the industry.In Louisiana,acivil law system,this is called ownership“in indivision”and the owners ofthe mineral leases are called \"co-owners.\"In the common law states,theseowners are called \"cotenants.\"For purposes of this article,these terms are  \nused interchangeably.The author attempts to demonstrate the universalityof certain principles by citing the laws of several oil and gas producingstates.  \n[2]Law of Co-0wnership or Co-tenancy  \nBy definition,an operating agreement typically exists,if at all,only in thecircumstances where two or more persons or companies own one or moremineral leases in indivision.²Conversely,there is obviously no need for anoperating agreement to exist if a mineral lease(s)is owned by one singleperson or company.One might best appreciate the import of an operatingagreement if one understands what rules apply if no operating agreementexists among co-owners(cotenants)of a mineral lease.  \nIn Louisiana,an analysis of the purpose and effect of an operatingagreement begins with the observation that,unless modified by agreement,the administration and management of a thing owned in indivision(or in aregime of co-tenancy)requires the concurrence of all co-owners or cote-nants.3  \nIn Louisiana,an explicit rule pertains to mineral leases which are ownedin indivision.Thus,Article 177 of the Louisian","cbCaivqDssmWClz0","https://ap.wps.com/l/cbCaivqDssmWClz0","pdf",43525790,63,"English","# Synopsis\n## §7.01 Introduction\n## §7.02 The Proposal to Conduct a Subsequent Operation\n## §7.03 Election and Response to Notice\n## §7.04 The Conduct of the Subsequent Operation\n## §7.05 Responsibility for Costs of the Subsequent Operation\n## §7.06 Miscellaneous Issues Concerning the Subsequent Operation","[{\"question\":\"What is the purpose of an operating agreement for mineral leases owned in indivision?\",\"answer\":\"An operating agreement sets the rules for exploration, development, operation, or production among co-owners of jointly owned mineral leases. It also provides how consent is granted and manifested for subsequent operations.\"},{\"question\":\"How does a party proceed when it receives a proposal for a subsequent operation?\",\"answer\":\"The chapter outlines the determination of the contract area, notice of the proposal, who may issue it, and how multiple proposals are handled. It then explains election rights, including responses to the proposed subsequent operation.\"},{\"question\":\"How are costs handled for subsequent operations when some parties do not consent?\",\"answer\":\"The chapter describes commitments to pay costs of proposed subsequent operations and special remedies to protect the operator who incurs those costs for the joint account. It also covers recoupment concepts and enforcement against non-consenting parties, including related accounting and bankruptcy enforcement.\"}]","CHAPTER 7 - Be Careful What You Ask For - Subsequent Operations Under the Model Form Operating Agreement | PDF",1789580665,22]