Washington Release of Farmout Agreement

• Category: Oil Gas and Minerals - Releases
• State: Multi-State
• Control #: US-OG-561
• Format: Word; Rich Text

Description

This is a form of a Release of Farmout Agreement. The Washington Release of Farm out Agreement is a legal document used in the state of Washington to establish the terms and conditions of a farm out arrangement between two parties in the oil and gas industry. This agreement is designed to allow the transfer of working interests from one party, known as the armor, to another party, known as the farmer, in the exploration and development of oil and gas resources. The Washington Release of Farm out Agreement outlines the rights, obligations, and responsibilities of both the armor and the farmer. It specifies the areas covered by the agreement, including the specific oil and gas leases or properties that are subject to the farm out arrangement. Additionally, the agreement outlines the duration of the farm out, which can be for a fixed period or until specific conditions are met. This agreement includes provisions for the payment of consideration by the farmer to the armor, which may include cash, securities, or other assets. It also establishes the terms for the retention of a portion of the working interest acquired by the farmer, often referred to as the back-in or diversionary interest, in the event that the farmer successfully develops the oil and gas reserves. In Washington, there are two main types of Release of Farm out Agreements that are commonly used: 1. Standard Washington Release of Farm out Agreement: This is the typical agreement used between the armor and farmer in Washington. It covers the general terms and conditions of a farm out arrangement, including the transfer of working interests and the payment of consideration. 2. Modified Washington Release of Farm out Agreement: This type of agreement is often customized to meet the specific needs and requirements of the parties involved. It may include additional provisions, such as clauses related to drilling commitments, joint operations, or shared infrastructure. In conclusion, the Washington Release of Farm out Agreement is a critical legal document that facilitates the transfer of working interests in the exploration and development of oil and gas resources in the state of Washington. It provides a comprehensive framework for the parties involved, ensuring clarity and protection of their rights and obligations.

The Washington Release of Farm out Agreement is a legal document used in the state of Washington to establish the terms and conditions of a farm out arrangement between two parties in the oil and gas industry. This agreement is designed to allow the transfer of working interests from one party, known as the armor, to another party, known as the farmer, in the exploration and development of oil and gas resources. The Washington Release of Farm out Agreement outlines the rights, obligations, and responsibilities of both the armor and the farmer. It specifies the areas covered by the agreement, including the specific oil and gas leases or properties that are subject to the farm out arrangement. Additionally, the agreement outlines the duration of the farm out, which can be for a fixed period or until specific conditions are met. This agreement includes provisions for the payment of consideration by the farmer to the armor, which may include cash, securities, or other assets. It also establishes the terms for the retention of a portion of the working interest acquired by the farmer, often referred to as the back-in or diversionary interest, in the event that the farmer successfully develops the oil and gas reserves. In Washington, there are two main types of Release of Farm out Agreements that are commonly used: 1. Standard Washington Release of Farm out Agreement: This is the typical agreement used between the armor and farmer in Washington. It covers the general terms and conditions of a farm out arrangement, including the transfer of working interests and the payment of consideration. 2. Modified Washington Release of Farm out Agreement: This type of agreement is often customized to meet the specific needs and requirements of the parties involved. It may include additional provisions, such as clauses related to drilling commitments, joint operations, or shared infrastructure. In conclusion, the Washington Release of Farm out Agreement is a critical legal document that facilitates the transfer of working interests in the exploration and development of oil and gas resources in the state of Washington. It provides a comprehensive framework for the parties involved, ensuring clarity and protection of their rights and obligations.