Two or more oil and gas operators can take an JOA to share the risk and cost of oil and gas exploration. One party is held responsible for the day-to-day operation, with costs often drawn from other JOA participants in the statement. The operator is able to keep costs low and other subscribers retain rights to their share of gas and oil that they can use as they see fit. The parties are rarely considered to be in partnership, unless the agreement expressly states that they are. In all the JOAs, parties retain an aspect of their original organization, whether it is the editorial voice, religious affiliation, vision or the ability to exploit the company`s resources. All parties participate in the financial risks of the joint venture and acquire the potential for an increased market presence and thus an increase in profits. A joint operating agreement, abbreviated JOA, is an agreement between two or more operators, under which they collaborate to share their resources and know-how to explore, develop and produce hydrocarbons from several rental lands. It is one of the largest and most widely used agreements in the oil and gas industry. The joint-operating agreement is a joint venture (JV) between different operators who sign this agreement. Operators share the profits as agreed in the JOA. Fink, Mark H. 1990.
« The Newspaper Preservation Act of 1970: Helping the Needy or the Greedy? » Detroit College of Law Review 1990 (spring). The JOas have been questioned as a means of avoiding anti-cartel problems. With International Shoe Co. v. FTC, 280 U.S. 291, 50 p. Ct. 89, 74 L.
Ed. 431 (1930), the Supreme Court created the « bankrupt company » defense, which allows mergers that would normally be contrary to antitrust law if one of the companies faces some failure, if no further action is taken. . . .