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Question
I have working interest in a producing project that is being mismanaged horribly.  the syndicators have only 1% working interest and some back end interest left.  I have been in contact with other working interest owners and all are in agreement that we need to remove the operator and take away authority from the syndicator.  Is there a way to do this because we will have a majority of more than 51% of the working interests in agreement?

Answer
Dave,

The answer will be found in the documents that were associated with your investment.  

When I participate in a drilling program as a working interest owner the answer is found in the Joint Operating Agreement.  The agreement will discuss what circumstances are required for the removal of the "Operator".  If you find how this is handled in your situation then you will find the answer to your question.  

There is no default answer except that everything can be determined by the paperwork or by filing suit in the district court where the well is located.  

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Cliff Williams

Expertise

I will try to answer any question you have. Even if I reject a question, I still will give a shot at what I would do in your position. The only questions I will not take a shot at would be a highly technical engineering or geological question. I am beginning to see quite a few questions from land men and other oil companies and that doesn't matter to me either. I will attempt to help.

Experience

I am an oil and gas attorney that has been in the business for more than 20 years. I have held a series 22 and 63 securities license, been in oil and gas operations, land man, division order analyst all prior to obtaining my law degree. Today, I typically write title opinions verifying ownership of oil and gas minerals, assist landowners in negotiations on oil, gas and mineral leases, easements and conveyances. I also assist oil and gas companies with the sale of working interest ownership as well as common business law issues.

Organizations
State Bar of Texas, Member of the Tarrant County Bar and the Dallas County Bar Associations.

Publications
Multiple oil and gas topical columns on ezine.com.

Education/Credentials
I have a B.S. degree which I rely upon more than my Business Mgmt degree or Law degree...

Awards and Honors
Husband and father of 26 years

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