Oil & Gas Partnership Agreement

The launch of a new business in the oil and gas sector will be driven in large part by the legal agreements that the parties enter into that will direct this new business venture, such that it is extremely important that these contractual arrangements need to be clearly defined and established. Such a contract needs to be appropriately negotiated and drafted such that each side is properly protected and capable of realize the most from this new business venture (while having the capacity to resolve problems and settle disputes).

What should be noted is that general partnership agreements need to be particularized to the circumstances, given the unique aspects of each contractual relationship. Particular aspects seen in such contracts have included:

"Creation of the Partnership. The Partners hereby agree to jointly create and form a partnership in accordance with, and subject to, the Partnership Act and the Agreement."

"Use of Partnership Assets. The Partners agree to use the Partnership’s assets in the best interests thereof and according to their function and purpose and agree to ensure that the rights of the other Partners are not limited by their use."

"Indemnification. The Partners agree to indemnify and hold each other harmless from and against any Loss which they may sustain or incur resulting from (i) any misrepresentation, inaccuracy, or erroneous statement made by them in the Agreement; (ii) any negligent or wilful action or omission by them or their Legal Representatives whenever they are acting on their behalf; (iii) any failure to perform their duties and obligations under the Agreement; (iv) any taxes, interest, or penalties attributable to them or their Legal Representatives whenever they are acting on their behalf; (v) any infringement of a third Person’s Intellectual Property caused by them or their Legal Representatives whenever they are acting on their behalf; (vi) any Breach by them, or any of their Legal Representatives whenever they are acting on their behalf, of any applicable Law, regulation, order, or decree; or (vii) any product or service warranty made by them other than its usual warranty."

For more information on the legal services of Neufeld Legal P.C. with respect to launching your new business in the oil & gas sector, whether as a partnership or other business structure, contact our lead lawyer Christopher Neufeld at Christopher@OilGasLawyer.ca or 403-400-4092.

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Agreements pertaining to the launch of an oil and gas business start-up.

Unanimous Shareholder Agreement

Joint Venture Agreement

General Partnership Agreement

Pre-Incorporation Partnership Agreement

Joint Ownership and Management Agreement