David Sweeney Authors Book Chapters on Joint Operating Agreements for Rocky Mountain Mineral Law Foundation

Akin Gump oil and gas partner David Sweeney has co-authored two chapters in The Rocky Mountain Mineral Law Foundation book Joint Operating Agreement: Applicability and Enforceability of Default Provisions.

In chapter three, “Operator’s Default,” Sweeney explores the complexities of the operator as a defaulting party. He begins with a discussion of the financial obligations of the parties and main duties of the operator. He then looks at the consequences of operator default, which includes the removal and replacement of the operator, the operations pending appointment of a new operator and the appointment of the new operator.

Chapter five, “Insolvency,” focuses on the effect of the insolvency of a joint operating agreement party. It explains the financial obligations of the parties and the results of the insolvency of the operator, non-operators and contractors. It also highlights the potential methods of protection such as joint operating agreement provisions, extra-contractual solutions, credit support and security, and offset.