A HOUSTON COURT OF APPEALS GIVES NEW INSIGHT INTO THE DEFINITION OF “WILLFUL MISCONDUCT” IN JOINT OPERATING AGREEMENTS.
In light of the inherent risks and uncertainties associated with oil and gas operations, most joint operating agreements (“JOA”) contain an exculpatory provision. Such provisions shield an operator for liability unless the non-operator can prove that damages were caused by conduct that was the result of gross negligence or willful misconduct.
June 4, 2021