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Utah Division of Oil and Gas Operating Agreement

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NON-DISCRIMINATION AND CERTIFICATION OF NON-SEGREGATED FACILITIES

EXHIBIT "F"

To Operating Agreement dated effective
between , as Operator,
and , as Non-Operators

1. During the performance of this Contract, the Operator agrees as follows:

A. The Operator will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The Operator will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training including apprenticeship. The Operator agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting office setting forth the provisions of this non-discrimination clause.

B. The Operator will, in all solicitations or advertisements for employees places by or on behalf of the Operator, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin.

C. The Operator will send to each labor union or representative or workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the agency contracting office, advising the labor union or worker’s representatives of the Operator's commitments under Section 202 of Executive Order No. 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

D. The Operator will comply with all provisions of Executive Order No. 11246 of September 24, 1965, and by the rules, regulations and relevant orders of the Secretary of Labor.

E. The Operator will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, and by the rules, regulations and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders.

F. In the event of Operator's non-compliance with the non-discrimination of this contract or with any of such rules, regulations or orders, this contract may be canceled, terminated or suspended, or in whole or in part, and the Operator may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in said Executive Order No. 11246 of September 24, 1965, or by rules, regulation or order of the Secretary of Labor, or as otherwise provided by law.

G. The Operator will include the provisions of Paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order No. 11246 of September 24, 1965, so that such provisions will be binding upon each contractor or vendor. The Operator will take such action with respect to any contract or purchase order as the contracting agency may direct as a means of enforcing such provisions, including sanctions for non-compliance; provided, however, that in the even the Operator becomes involved in or is threatened with litigation with a contractor or vendor as a result of such direction by the contracting agency, the Operator may request the United States to enter into such litigation to protect the interest of the United States.

2. Equal Employment Opportunity Reporting.

The Operator, unless exempt, agrees to file with the appropriate federal agency a complete and accurate report on Standard Form 100 (EEO-1) within thirty (30) days after the signing of this Agreement or the award of any such purchase order, as the case may be, (unless such a report has been filed in the last 12 months), and agrees to continue to file such reports annual, on or before March 31st. (41 CFR 60-1.7(a)).

3. Affirmative Action Compliance Program.

The Operator agrees to develop and maintain a current written affirmative action compliance program for each of its establishments in accordance with the regulations of the Secretary of Labor promulgated under Executive Order No. 11246, as amended (41 CFR 60-01.40).

4. Veteran's Employment.

In the event the agreement to which this exhibit is attached is for the purpose of carrying with any department or agency of the United States for the procurement of personal property and non-personal services (including construction) for the United States as provided by Section 2012 of Title 38 USC, Operator agrees to give special emphasis to the employment of qualified disabled veterans and veterans of the Vietnam era and to list immediately with the appropriate local employment service office all of its suitable employment openings.

5. Equal Opportunity in Employment Certification of Non-Segregated Facilities.

Operator, by entering into the contract to which this Exhibit D is attached, certifies that he does not maintain or provide for his employees any segregated facilities at any of his establishments, and that he does not permit his employees to perform their services at any location, under his control, where segregated facilities are maintained. Operator agrees that a breach of this certification is a violation of the Equal Opportunity clause in this contract. As used in this certification, the term "segregated facilities" means, but is not limited to, any waiting rooms, work areas, restrooms and washrooms, restaurants, and other eating areas, time clocks, locker rooms, and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing facilities provided for employees which are segregated by explicit directive or are in fact segregated on the basis of race, creed, color or national origin, because of habit, local custom, or otherwise. He further agrees that (except where he has obtained identical certifications from proposed contracts for specific time periods) he will obtain identical certifications from proposed contractors prior to the award of contracts exceeding $10,000.00 which are not exempt from the provisions of the Equal Opportunity clause, that he will retain such certifications in his files; and that he will forward the following notice to such proposed contractors (except where the proposed contractors have submitted identical certifications for specific time periods):

6. Notice to Prospective Contractors of Requirement for Certifications of Facilities.

A Certification of Non-Segregated Facilities, as required by the May 9, 1967 Order (32 F.R. 7439, May 19, 1967) on Elimination of Segregated Facilities, by the Secretary of Labor, must be submitted prior to the award of a contract exceeding $10,000.00 which is not exempt from the provisions of the Equal Opportunity clause. The certification may be submitted either for each contract or for all contracts during a period (i.e., quarterly, semi-annually, or annually).

Operator Signature

Date

Certification

I certify that the above information is true and correct to the best of my knowledge.

Enter text✕

What the Utah Division of Oil and Gas Operating Agreement Is

The Utah Division of Oil and Gas Operating Agreement is a formal contract used by operators, working interest owners, and mineral owners to document authority, cost sharing, production allocation, and operational governance for oil and gas activity in Utah. It sets forth operator duties, accounting and audit rights, cost recovery methods, revenue distribution, joint operations procedures, and dispute resolution. The agreement supports regulatory compliance with Utah Division rules while creating contractually enforceable obligations among parties who share drilling, production, and plugging responsibilities on specific leases or pooled units.

Why a Clear Operating Agreement Matters

A properly drafted Utah Division of Oil and Gas Operating Agreement reduces disputes, clarifies cost and revenue allocations, documents operator authority, and helps ensure compliance with Utah statutes and Division rules while protecting non‑operators and royalty owners.

Why a Clear Operating Agreement Matters

Who Typically Uses This Agreement

Typical users include operators, non‑operator working interest holders, mineral owners, landmen, and attorneys who manage or advise on Utah oil and gas projects.

  • Operators managing drilling, production, unitization, and cost recovery across multiple leases.
  • Non‑operators and royalty owners protecting revenue shares, audit rights, and accounting transparency.
  • Landmen and regulatory counsel preparing, reviewing, or amending operating provisions for Utah compliance.

Identifying the right audience early helps determine signing order, authentication level, and whether notary or recording steps are needed.

Representative Parties and Their Roles

Operator

The operator oversees drilling and production, pays or advances shared costs, provides operational notices, maintains records, and answers audit requests. Operators often carry liability for day‑to‑day operations and must comply with Division reporting and safety rules.

Non‑Operator

Non‑operators hold working or royalty interests, contribute funds when required, exercise audit and inspection rights, and rely on the agreement for clear allocation of production and accounting information.

Key Sections Found in a Professional Operating Agreement

A complete Utah Division of Oil and Gas Operating Agreement combines governance, finance, and compliance language to minimize ambiguity and document practical workflows.

Operator Authority

Defines who may operate wells, make expenditures, enter contracts, and act in emergencies, including approval thresholds for capital and change orders.

Cost Allocation

Specifies accounting methods for joint expenses, burdened versus unburdened costs, cash calls, advances, and how overruns are handled among parties.

Production Allocation

Describes how produced hydrocarbons and proceeds are measured, allocated, and paid to parties based on working interest percentages and unit agreements.

Accounting & Audit

Sets the cadence for accounting statements, allowable deductions, audit rights, record retention, and dispute resolution for accounting discrepancies.

Unitization & Pooling

Addresses relationship to unitization orders, pooled acreage, and how unit operating costs and production are shared across participating tracts.

Dispute Resolution

Includes negotiation, mediation, arbitration, or litigation pathways, choice of governing law, and venue for resolving contract disputes.

Required Information and Core Fields

Parties' Legal Names: Exact legal entity names
Lease or Unit ID: Lease number or unit identifier
Effective Date: MM/DD/YYYY
Ownership Percentages: Working interest shares
Operator Contact: Mailing and emergency contact
Signatures: Names, titles, dates

Step‑by‑Step: Completing the Agreement

Follow a consistent sequence to draft, review, sign, and distribute the agreement to reduce errors and accelerate execution.

  • 01
    Gather Parties: Confirm legal entity names and authorized signatories before drafting.
  • 02
    Populate Fields: Enter lease IDs, effective date, and interest percentages accurately.
  • 03
    Negotiate Terms: Resolve cost, accounting, and unitization language with counsel.
  • 04
    Sign and Record: Obtain required signatures, notarization (if any), and distribute final copies.

Customizing an Online Workflow for This Agreement

Configure an online signing workflow to match your internal approvals and external signature sequence.

Field Configuration
Signing Order Sequential or parallel routing
Authentication Email, SMS code, or ID verification
Reminders Auto reminders and expiry
Audit Trail Capture timestamp, IP, and actions

Where to File and How to Route Final Documents

Decide who retains originals, which copies go to the Utah Division, and how participants receive executed copies.

  • Internal Record: Retain an executed original for corporate records and accounting.
  • Division Filing: Submit required reports or notifications to the Utah Division per regulatory rules.
  • Participant Copies: Provide each party a fully executed copy with audit certificate.
  • Third‑Party Recording: Record a memorandum only if required by county recording rules.

How to Share and Distribute the Agreement Securely

Choose secure distribution channels that support audit trails, access controls, and consent records for electronic delivery.

  • Email with PDF: Attach secured PDF and request receipt confirmation.
  • Secure Link: Use time‑limited links and access codes for external signers.
  • Document Storage: Store in encrypted cloud or corporate repository

Preserve the audit trail, signed PDF/A copies, and distribution logs to support enforceability and future audits.

Typical Timelines and Processing Expectations

Processing times vary by party responsiveness, required approvals, and any agency filings; plan for coordination and buffer time.

Negotiation Period:

Often 1–6 weeks depending on complexity and number of stakeholders.

Internal Approval:

Allow 3–10 business days for corporate signatory review and legal clearance.

Signature Completion:

Execution can be same day with coordinated eSignature or several days with sequential signing.

Notarization / Recording:

Add 1–10 business days if notary, RON, or county recording is needed.

Distribution:

Provide executed copies and audit certificates immediately after final signature.

Common Mistakes to Avoid

  • Using informal or inconsistent party names that create ambiguity in enforcement or tax reporting.
  • Failing to specify accounting methods, leading to disputes over deductible versus non‑deductible costs.
  • Neglecting to document authority or provide powers of attorney for signatories who lack corporate authorization.
  • Skipping audit, inspection, or notice provisions that impede recovery of costs or verification of production.

Risks and Consequences of an Incorrect Agreement

Contract Dispute: Damages exposure
Revenue Misallocation: Incorrect payments
Regulatory Noncompliance: Division notices
Invalid Signature: Enforceability risk
Audit Failure: Cost disallowance
Recording Errors: Title or lien issues

How This Operating Agreement Differs from Related Documents

Compare similar agreements to choose the right document for the intended commercial and regulatory outcome.

Document Type Primary Use Notarization?
Operating Agreement joint operations governance optional
Unitization Agreement pooling production rights often required
Lease Assignment transfer of lease rights often recorded
Memorandum of Agreement public notice of interests commonly recorded

eSignature Pricing Comparison Relevant to Executing the Agreement

Comparison of common eSignature vendors and plan starting prices to help budget for secure execution and signature workflows.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7‑day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Saving and Exporting the Final Agreement

Save executed documents in durable, tamper‑evident formats and maintain a complete audit trail for future verification.

Signed PDF/A

Store a signed PDF/A copy with embedded audit metadata to preserve integrity and long‑term readability across systems.

Native Word File

Keep an editable DOCX copy for internal amendment drafts, clearly labeled as non‑executed working copy.

Certificate of Completion

Include an audit certificate showing timestamps, IP addresses, and signer authentication details for legal proof.

Secure Archive

Retain copies in encrypted cloud storage or corporate repositories with access controls and logging enabled.

Real‑World Execution Examples

Practical examples show how parties use eSignature and online workflows to complete operating agreements with multiple stakeholders.

Martin Properties

A mid‑sized landowner used online signing to finalize a multi‑party operating agreement quickly

  • One day from distribution to full execution
  • The team processed signatures remotely, preserved audit trails, and avoided travel and scheduling delays while maintaining compliance.

Optica Ventures LLC

An investment firm coordinated multiple non‑operator signatures across states using a secure workflow

  • Coordinated bulk invites reduced manual follow‑up
  • The approach provided transparent accounting paths and a single stored executed copy for investor records and audits.

Practical Tips for Accurate and Efficient Completion

Adopt consistent processes and controls to minimize errors and speed execution when multiple parties are involved.

Standardize Party Names
Use the exact legal name and entity type for each party across all documents, certificates, and schedules to avoid confusion during audits or title checks.
Use Clear Accounting Rules
Define cost categories, allowable expenses, and timing for cash calls to reduce disputes and ensure consistent reporting across operators and non‑operators.
Plan Signing Sequence
Decide whether signatures are sequential or parallel and set up reminders, authentication, and deadlines to avoid hold‑ups.
Preserve Audit Records
Maintain signed PDFs, completion certificates, and distribution logs in encrypted storage for the recommended retention period.

Key Milestones from Negotiation to Ongoing Compliance

Track milestones to coordinate parties, approvals, and regulatory interactions across the agreement lifecycle.

01

Negotiation Complete

Agreement language finalized and circulated for internal approval.

02

Execution & Notary

Signatures obtained and notarization completed where required.

03

Distribution

Executed copies delivered to participants and uploaded to records.

04

Ongoing Reporting

Accounting, audits, and Division reports performed per schedule.

FAQs: Common Questions About the Agreement

Answers to frequent questions about drafting, signing, notarization, legal validity, and common execution issues for Utah operating agreements.


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