The operations clause, also known as a continuous-operations clause or well-completion clause, is a provision in an oil and gas exploration agreement that ensures the lease remains valid as long as there is ongoing development of oil and gas on the property. This means that the lease will not expire as long as the company continues to work on the land.
An operations clause, also known as a continuous-operations clause or a well-completion clause, is a provision in an oil-and-gas lease that guarantees the lease’s validity as long as oil-and-gas development persists on the leased property. This clause safeguards the company’s investment in the lease and incentivizes them to continue developing the property. Similarly, if a landowner includes an operations clause in their lease to an oil-and-gas company, the lease would expire if the company ceases drilling or extracting oil and gas, allowing the landowner to lease the property to another company. In essence, an operations clause is an essential provision in an oil-and-gas lease that ensures the lease remains valid as long as oil-and-gas development continues on the leased property.
An operations clause is a provision in a legal document, such as a contract or a company’s bylaws, that outlines the specific activities and procedures related to the operation of a business or organisation.
An operations clause is important because it helps establish clear guidelines and expectations for how a business or organisation should be run. It can help prevent misunderstandings and disputes among stakeholders.
An operations clause should include details about the decision-making process, roles and responsibilities of key individuals, financial management procedures, dispute resolution mechanisms, and any other specific operational requirements relevant to the business or organisation.
Yes, an operations clause can be modified or amended if all parties involved agree to the changes. It is important to follow any procedures outlined in the original document for making modifications.
Yes, an operations clause can be enforced in court if it is deemed legally binding and if one party breaches the terms outlined in the clause. However, the enforceability may depend on various factors, including the jurisdiction and the specific language used in the clause.
Yes, an operations clause can be included in various types of legal documents, such as contracts, bylaws, partnership agreements, and articles of incorporation. Its inclusion depends on the specific needs and requirements of the business or organisation.
Yes, an operations clause can include provisions for dispute resolution, such as mediation or arbitration, to help parties resolve conflicts without resorting to litigation. This can save time and costs associated with court proceedings.
Yes, an operations clause can include provisions related to the protection of intellectual property rights, such as trademarks, copyrights, or trade secrets. This can help safeguard the business’s valuable assets.
Yes, an operations clause can include provisions that limit the liability of certain individuals or entities involved in the business or organisation. However, the enforceability of such limitations may vary depending on the jurisdiction and the specific circumstances.
It is highly recommended to consult a lawyer when drafting or reviewing an operations clause. A lawyer can provide legal advice, ensure compliance with applicable laws and regulations, and help tailor the clause to meet the specific needs and goals of the business or organisation.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 27th April 2024.
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