Production Revenues and the Insolvent Operator
AbstractThis paper analyzes the problems a non-operator may suffer in attempting to recover from a receiver or a trustee in bankruptcy monies received by, or paid to. an insolvent operator of an oil and gas project. The contractual relationships which give rise to the issues are reviewed with particular reference to the 1981 Canadian Association of Petroleum Landmen Operating Procedure. An overview of the remedies available to the non-operator in these circumstances is presented, with the principal emphasis upon tracing in equity and at common law. From the uncertainly and shortcomings of these remedies emanates a consideration of new measures to protect the non-operator's position.
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