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It opens with an illustrated introduction from a personal professional experience, then provides a historical overview of operating agreements and their evolution. The text explains what an operating agreement is, why it is used, and how joint operating agreements are structured to manage risk, costs, and operator/non-operator responsibilities when one party fails to pay.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":36,"@type":70,"position":76},"https://docshare.wps.com/template/forms/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/the-aapl-operating-agreement-and-the-deadbeat-non-operator/282429/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/the-aapl-operating-agreement-and-the-deadbeat-non-operator/282429.png","ImageObject",442,249,{"name":88,"@type":89},"Nguyễn Văn Học","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-10-30","2026-09-16",true,{"@type":98,"interactionType":99,"userInteractionCount":47},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What is the AAPL 610 Operating Agreement discussed in the document?","Question",{"text":108,"@type":109},"It is a model American Association of Professional Landmen operating agreement used as a template for how parties jointly develop an oil and gas lease.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"Why are operating agreements used in upstream oil and gas development?",{"text":113,"@type":109},"Operating agreements coordinate joint development among parties, typically through a joint operating agreement framework, clarifying responsibilities and managing the practicalities of shared exploration and production activities.",{"name":115,"@type":106,"acceptedAnswer":116},"What is a deadbeat non-operator and how does it arise in joint operations?",{"text":117,"@type":109},"A deadbeat non-operator is a non-operator party who fails to pay its billed share of costs. The document’s narrative describes a case where the non-operator was billed but did not pay, ultimately leading to bankruptcy.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},282429,1792185881,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":35,"category_name":36,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":47,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":40,"language":135,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":136,"faqs":137,"seo_title":138,"seo_description":61,"update_tm":139,"read_time":140,"preview_page_count":4},1374402739827,"https://ap-avatar.wpscdn.com/avatar/14000c97e7351f1a627?x-image-process=image/resize,m_fixed,w_180,h_180&k=1787885694763230660","OFFICERS  \nM.C.Cottingham Miles,Chair300 Convent Street,Suite 2500San Antonio,Texas 78205(210)220-1354  \nDavid M.Patton,Chair-Elect3400 JPMorgan Chase Tower6oo Travis  \nHouston,Texas 77002(713)226-1254  \nRicardo E.Morales,Vice-ChairP.O.Box 6668Laredo,Texas 78042(956)727-4441  \nCharles W.Gordon,Secretary8o₀N.Shoreline Blvd.,Suite 800Corpus Christi,Texas 78401(361)880-5858  \nPeter E.Hosey,Treasurer112 E.Pecan Street,Suite 2400San Antonio,TX78205(210)228-2423  \nTimothy R.Brown,Immediate Past Chair1201 Lake Robbins DriveThe Woodlands,Texas 77380(832)636-7560  \n# COUNCIL\n\nTERMS EXPIRE 2014Doug Dashiell,AustinKathleen E.Magruder,HoustonMark C.Rodriguez,Houston  \nTERMS EXPIRE 2015  \nProf.Owen Anderson.Oklahoma CityMichael D.Jones,HoustonLisa Vaughn Lumley,Fort Worth  \nTERMS EXPIRE 2016Chris Aycock,MidlandJohn Bowman,HoustonMike McElroy,Austin  \n# SECTION REPORT EDITOR\n\nDoug Dashiell  \nScott Douglass &McConnico LLP600 Congress Ave,Suite 1500Austin,TX78701-3236(512)495-6300ddashiell@scottdoug.com  \n# OIL,GAS &ENERGY RESOURCES LAWSECTION OF THE STATE BAR OF TEXAS\n\nDr.Daniel Yergin Speaking at the75ᵗAnniversary Gala of theOil,Gas and Energy Resources Law Section  \n# THE AAPL OPERATING AGREEMENTAND THE DEADBEAT NON-OPERATOR¹\n\nPaul G.Yale  \nHouston,Texas  \n# INTRODUCTION\n\nI.  \n\"Mr.Green Leisure Suit,\"as I will callhim,dropped in on me unexpectedly in myDenver office where I was employed as anear entry-level landman by a major oilcompany (Exxon)in the early 1980s.Thepassage of time has obscured some details,but I recall most.He entered my office in apastel green,bell-bottomed leisure suit witha gold puka shell necklace adorning hiswell-tanned,very hairy chest.His girlfriendwas dressed in a tight fitting,memorablyscant outfit similar to what might be worntoday by a “Zumba”dance fitness instructorin a women's workout studio.Her attire wascertainly not business dress,even bybusiness casual dress standards to theextent such standards existed n the early1980s;  but no matter,  she wasaccompanying him for no apparent businessreason.  \nI had been assigned the task ofputting a lease play together inNortheastern Colorado,in the same areathat today is seeing large scale horizontaldrilling and development in the Niobraraformation.But this was long beforehorizontal fracking had come of age,Exxonwanted to drill vertical test wells,perhaps asmany as a dozen,at a drilling andcompletion cost per well of several milliondollars.I had contacted “Mr.Green LeisureSuit\"for a farmout of his approximately 10%leasehold position on the prospect.Mr.Green Leisure Suit was the son of a very  \nwell known,wealthy,Houston businessmanwhich was a fact that I,having recentlymoved to Colorado from Texas,was undulyimpressed by.  \nMr.Green Leisure Suit told me thathe was in town to snow ski but wanted torespond to my farmout request in personwhile he was here.He then told me hewanted to join in the wells,not farmout.Iexplained to him that even a 10%interestcould cost him millions of dollars given howexpensive the wells were and the number ofthem that Exxon planned to drill.I alsowarned him about Exxon's propensity at thetime for significant cost overruns.Hisresponse was something like,\"Not aproblem,I'm ready to run with the big dogs.So let's drill these suckers,where do Isign?”  \nI then had my secretary prepare astack of authorities for expenditure(AFEs)and signature pages to a Model FormAmerican Association of ProfessionalLandmen(AAPL)610 Operating Agreement(probably the 1977 version)all of which Mr.Green Leisure Suit enthusiasticallyexecuted.The deal with Mr.Green LeisureSuit having been closed,  Exxoncommenced its exploration program.Wedrilled six or seven dry holes in a row beforeabandoning the play.There were significantcost overruns.Mr.Green Leisure Suit's finalshare of costs was $2-3 million,a fairamount of money today,even more so inthe early 1980s.  \nA month or so after we shut theprogram down,I was contacted by ouraccounting department.As it turned out,Exxon had bille","cbCaii0O3aKFs7wz","https://ap.wps.com/l/cbCaii0O3aKFs7wz","pdf",2881379,"English","# COUNCIL\n## TERMS EXPIRE 2014\n## TERMS EXPIRE 2015\n## TERMS EXPIRE 2016\n# INTRODUCTION\n## I\n# A BRIEF OVERVIEW OF HISTORY AND USE OF OPERATING AGREEMENTS IN THE UPSTREAM EXPLORATION AND PRODUCTION\n## II","[{\"question\":\"What is the AAPL 610 Operating Agreement discussed in the document?\",\"answer\":\"It is a model American Association of Professional Landmen operating agreement used as a template for how parties jointly develop an oil and gas lease.\"},{\"question\":\"Why are operating agreements used in upstream oil and gas development?\",\"answer\":\"Operating agreements coordinate joint development among parties, typically through a joint operating agreement framework, clarifying responsibilities and managing the practicalities of shared exploration and production activities.\"},{\"question\":\"What is a deadbeat non-operator and how does it arise in joint operations?\",\"answer\":\"A deadbeat non-operator is a non-operator party who fails to pay its billed share of costs. The document’s narrative describes a case where the non-operator was billed but did not pay, ultimately leading to bankruptcy.\"}]","The AAPL Operating Agreement and the Deadbeat Non-Operator | PDF",1789574327,6]