- Good faith — Arbitration
This chapter focuses on Joint Operating Agreements (JOAs). A JOA is an agreement between two or more companies which defines their respective rights and obligations in the exploration of a hydrocarbon project. The purpose of the JOA is for the participating companies to share risks (costs) and rewards (revenues) in relation to the project, and to define their respective roles. Among other things, the chapter discusses leading model form JOAs, as well as the interpretation and application of clauses typically found in JOAs, such as exculpatory or liability limitation clauses, pre-emption clauses, and clauses dealing with the consequences of a party's default or forfeiture. It also analyzes case law from various jurisdictions regarding implied or statutory obligations, such as duties of ‘good and fair dealing’ and fiduciary duties amongst the partners.