Joint Operating Agreements, or JOAs, are commonly used in the oil and gas industry to define the relationship between two or more parties that have come together for a specific project or purpose. Essentially, JOAs are legal agreements that dictate how the parties will work together, share costs and profits, and manage the risks associated with a given operation.

Perhaps the most defining characteristic of JOAs is that they establish a level of shared control between the parties involved. In most cases, this means that each party has a say in how the operation will be run, what resources will be used, and how profits will be distributed. This type of arrangement can be particularly useful in situations where one party may have expertise or resources that the other does not, but both parties have a vested interest in the success of the operation.

Another defining feature of JOAs is that they often include language outlining the specific responsibilities of each party involved. For example, one party may be responsible for drilling a well while another is responsible for managing the logistics of transporting the oil or gas produced from that well. By spelling out these responsibilities in advance, JOAs can help ensure that each party knows what is expected of them and that there is a clear chain of accountability in place.

Finally, JOAs can also be used to manage the risks associated with a given operation. This may include provisions for insurance or indemnification in the event that something goes wrong, as well as specific guidelines for how disputes between the parties will be resolved.

In summary, JOAs are legal agreements used in the oil and gas industry to define the relationship between two or more parties working on a specific project. They establish a level of shared control between the parties, define specific responsibilities, and manage the risks associated with the operation. By carefully crafting these agreements, parties can work together more effectively and ensure that each party`s interests are protected.