Joint Operating Agreement: Accounting

摘要

In 1998, Chisholm and Buckingham Oil Interests execute a joint operating agreement naming Chisholm as operator. The JOA covers what the parties refer to as the Texaco Fee Lease. Chisholm also is the operator for three other leases for which there are no JOA's. The operatorship on all four leases is transferred to Paint Rock in December 2005. No joint interest billings (JIBs) are sent to Chisholm until June 2006. Chisholm disputes some of the billings, but sends a check for the undisputed charges. Paint Rock files this action to collect the unpaid portion of the JIBs and attorney's fees. The trial court awards Paint Rock $ 3927.40, a sum much smaller than it requested and denies attorney's fees. Held: affirmed. As for the Texas Fee Lease, the court affirms the trial court's finding that Paint Rock breached the JOA by failing to timely bill Chisholm for the period December 2005 through May 2006.