A farmout agreement is used when the "farmor" agrees to assign acreage to the "farmee" in return for the "farmee" performing specified drilling and testing obligations, with the "farmor" also reserving an interest in the acreage assigned and in the production from the wells drilled by the second company.
Bexar Texas Farmout Agreement - Short Form
Category:
State:
Multi-State
County:
Bexar
Control #:
US-OG-224
Format:
Word;
Rich Text
Instant download
Description
Free preview
How to fill out Farmout Agreement - Short Form?
A documentation process consistently accompanies any legal tasks you undertake.
Establishing a business, applying for or accepting a job opportunity, transferring ownership, and various other life situations necessitate the preparation of official paperwork that varies by region.
This is why consolidating everything in a single location is immensely beneficial.
US Legal Forms is the largest digital repository of current federal and state-specific legal documents.
This is the most straightforward and reliable method to acquire legal documents. All templates offered by our library are expertly prepared and validated for compliance with local laws and regulations. Organize your paperwork and manage your legal matters efficiently with US Legal Forms!
- On this site, you can effortlessly find and obtain a document for any personal or business requirement relevant to your area, including the Bexar Farmout Agreement - Short Form.
- Finding forms on the site is incredibly straightforward.
- If you already hold a subscription to our platform, Log In to your account, search for the template in the search bar, and click Download to save it on your device.
- Afterward, the Bexar Farmout Agreement - Short Form will be accessible for subsequent use in the My documents section of your account.
- If you are utilizing US Legal Forms for the first time, follow this brief guide to obtain the Bexar Farmout Agreement - Short Form.
- Ensure you have accessed the correct page with your local form.
- Utilize the Preview feature (if available) and browse through the template.
- Examine the description (if provided) to verify that the template meets your needs.
- Look for an alternative document using the search tool if the sample does not suit you.
- Click Buy Now once you identify the required template.
Form popularity
FAQ
In the context of land management, 'farm out' refers to the process where an oil or gas company delegates their rights to explore or extract resources from a specific parcel of land to another company. This transaction is often formalized through what is known as a Bexar Texas Farmout Agreement - Short Form. Essentially, the original company hands over operational responsibilities while retaining some interest in the production. This arrangement can be beneficial for both parties, as it allows the original company to mitigate risk while providing the other company an opportunity to develop the land.
in is an agreement between two operators, one of which owns the interest in a piece of land where oil or gas has been discovered. The current owner of the interest makes the agreement in order to offset the costs associated with drilling, developing, or otherwise removing the resources from the land.
A farmout is when a resource-producing property is outsourced for development to a third party or farmee. The farmee pays the owner (farmor) royalties on income generated from the outsourced activities. Farmouts are most common in natural resources exploration and extraction, such as with oil, gas, or minerals mining.
The Earning Barrier On the other hand, a farmee under a drill-to-earn contract earns an interest in the property once he drills to a specified formation and conducts the specified testing. Again, the farmor's motivations in seeking a farmee will dictate which earning barrier is most appropriate.
It is willing to drill the well(s) for you and pay the drilling costs (what is known as a drilling carry), in exchange for you assigning them a percentage of your working interest. Another way to think of it is obtaining drilling services where the consideration is an assignment of working interest rather than cash.
Before Payout (BPO): The period before a well has paid out the costs to drill, complete and operate.
Noun. farmor (plural farmors) (mining) An owner of oil or gas leases that exchanges part of them to a farmee for services.