Tennessee Area of Mutual Interest Agreement
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How to fill out Area Of Mutual Interest Agreement?
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FAQ
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.
Under Title 12, Chapter 9, Part 1 of the Tennessee Code Annotated, local governments are permitted to cooperate with other localities in an attempt to provide services and facilities in the most efficient and mutually advantageous fashion.
In Tennessee, any contract for the sale of goods valued over $500 must be in writing to be legally binding (the Statute of Frauds). If the sale is for a good that has a price tag of less than $500, there does not need to be a written contract for the transaction to be legally valid.
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.
Meanings of mutual and interest (of two or more people or groups) feeling the same emotion, or doing the same thing to or for ... See more at mutual. interest. noun.
1. 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 AMI agreement binds the signatory parties to jointly explore for oil and gas in a defined geographic area for a specified period of time.
Ami is a legal term that means "friend". It is often used in traditional legal phrases like "prochein ami" which means "next friend". In legal cases, a next friend is someone who appears in court to act on behalf of a minor or incompetent plaintiff.