Fill and Sign the Model Form Operating Agreement Nm Oil

ARBITRATION AGREEMENT (Between Operator and Nonoperator) State: County: Operator: Nonoperator: Effective Date: Operator and Nonoperator, both named above, own undivided leasehold interests in the oil and gas leases described on Exhibit "A" to this Agreement (the "Leases"). The Lease s cover the following lands located in the county and state named above: (Description of Lands Covered by the Leases which are the Subject of this Agreement)Operator and Nonoperator (sometime collectively called the "Parties") have ente red into several agreements, including an Operating Agreement, governing operation of the Leases. In the event questions, differences, or disputes arise with regard to any of their agreements or the operations of the Leases, Operator and Nonoperator desire that the resolution of these questions, differences, and disputes be by arbitration rather than resorting to the court systems. Accordingly, for adequate consideration, the Parties agree as follows: 1. All questions, differences, and disputes arising from the terms of any agreements between the Parties which govern operations of the Leases or which arise in connection with the conduct of operations of the Leases, which the Parties cannot resolve, are to be settled by a rbitration. This method of resolving any questions, differences, and disputes is in the best interest of t he Parties. Any matter which cannot be resolved shall be submitted to a panel of arbitra tors. The panel shall consist of three arbitrators, one of which shall be named by Operator, one of which shall be named by Nonoperator, with the two selected arbitrators then selecting or appoi nting a third arbitrator. The decision of the panel of arbitrators in the settlement of any que stion, difference, or dispute between Operator and Nonoperator, including any disputes that may arise in the future, shall be final and binding upon Operator and Nonoperator with respect to all matters embraced in such arbitration. Operator and Nonoperator stipulate, agree, and acknowledge that any award or decision made in such arbitration is and shall be bindi ng and enforceable in the same manner as any contract obligation. 2. The Parties agree to be bound by the statutes, rules, and regulations of the state named above which govern or affect the arbitration process. 3. Either Party may transfer, sell, or assign all or any part of their interest in the Leases. If a Parties interest in the Leases becomes, owned by more than one owner, and a dispute arises giving rise to the need or advisability of arbitration, the parties initiating the arbitration shall only have the right to select one arbitration panel member. 4. Any assignment by Operator or Nonoperator of an interest in the Leases shall be made expressly subject to the terms and provisions of this Agreement. This Agreement shall be binding on Operator and Nonoperator and their respective heirs, personal representatives, successors, and assigns. This Agreement is signed by Operator and Nonoperator as of the date of acknowledgment of their signatures below, but is effective for all purposes as of the Effect ive Date stated above. Operator Nonoperator (acknowledgments) [Exhibit "A": Description of Oil and Gas Leases]