South Carolina Area of Mutual Interest Agreement

Q: What are preferential rights in oil and gas?

Hear this out loud Pause1. n. Oil and Gas Business The right that nonselling participating parties have in a lease, well or unit to proportionately acquire the interest that a participating party proposes to sell to a third party.

Category:

Oil Gas and Minerals - Agreements

State:

Multi-State

Control #:

US-OG-682

Format:

Instant download

Description

This form is an agreement between parties that own leasehold interests created by oil and gas leases. To facilitate the coordinated acquisition of additional Leases and exploration for and development of oil, gas, and other minerals from lands located in the general area of the Parties Leases, the Parties desire to enter into this Agreement to create an Area of Mutual Interest (the AMI).

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FAQ

Area of Mutual Interest (AMI): a geographic area generally defined by a contract (e.g., Farmout, JOA, JDA or similar agreement) within which two or more persons hold an interest.

Hear this out loud Pause1. n. [Oil and Gas Business] The right that nonselling participating parties have in a lease, well or unit to proportionately acquire the interest that a participating party proposes to sell to a third party.

An area of mutual interest (AMI) contract describes the geographic area contained in the AMI, the rights of each party (such as the percentage interest allocated to each company), the agreement's term, and how contract provisions are to be implemented.