Cotenants typically draft a JOA when more than one party holds the title to an oil and gas estate in a particular geographic region. While multiple JOA forms exist to address issues unique to various oil and gas sectors, all JOAs facilitate the appointment of a sole operator tasked with overseeing exploration, production, and development activities in accordance with the JOA, while other cotenants, or non-operators, aid in decision-making on subsequent operations.
The wide variety of JOA forms includes the American Association of Professional Landmen (AAPL) Model Form 610, which serves as a general JOA that is applicable to several operational areas. This standard form creates a contractual basis for the collaborative operations, cost and liability sharing, equipment ownership, and production responsibilities of cotenants based on their ownership percentages. Additionally, Model Form 610 outlines terms and conditions for initial well drilling, the voting process, and financial allocations, as well as the methods for resolving issues related to future title disputes, acquisitions, and dispositions.