This form creates an Area of Mutual Interest ( AMI ) comprising the Contract Area. During the term of this AMI, if any Party acquires all or any interest in any Oil and Gas Leases, any mineral interest, or any farmouts or other contracts which affect lands and minerals lying within the AMI, the Acquiring Party shall promptly advise each of the other Parties of the acquisition, at which time each Offeree shall have the right to acquire its proportionate interest in the Oil and Gas Interest.
Montana Area of Mutual Interest (AOI) is a term used in the oil and gas industry to describe an agreement between multiple parties regarding the exploration and development of hydrocarbon resources in a specific geographic area. In the context of Montana's oil and gas industry, an AOI typically refers to a designated region within the state where multiple operators have agreed to cooperate and share information about their findings. This collaboration allows operators to collectively evaluate the potential for oil and gas discoveries and plan the most efficient extraction activities. The Montana Board of Oil and Gas Conservation (BOG) plays a crucial role in overseeing and facilitating AOI agreements in the state. The BOG helps operators establish Axis by setting specific criteria for participation and ensuring compliance with applicable laws and regulations. There are various types of Montana Axis, each with its own characteristics and objectives. Some examples include: 1. Prospect-Specific Axis: This Axis focus on a particular geological prospect or formation within Montana. Operators with an interest in exploring and developing resources in that specific area join forces sharing data, reduce costs, and optimize drilling strategies. 2. County or Regional Axis: This Axis encompasses an entire county or a larger geographical region and involve multiple operators. The purpose is to identify potential resource-rich areas and collaborate on leasing, exploration, and production activities within that jurisdiction. 3. Infrastructure Axis: In some cases, Axis are established around existing infrastructure, such as pipelines, gathering systems, or processing facilities. Operators in proximity agree to coordinate their activities to maximize infrastructure usage and minimize costs. 4. Research and Development Axis: This Axis focus on advancing the understanding of unconventional resources, such as shale or tight oil and gas formations. Operators, along with research institutions and government agencies, collaborate to gather data, conduct studies, and share best practices for effective and environmentally responsible extraction techniques. To summarize, Montana Axis are cooperative arrangements in the oil and gas industry that enable operators to work together within a defined geographic area to evaluate, develop, and produce oil and gas resources. These agreements facilitate information sharing, reduce costs, and promote efficient and responsible resource extraction.
