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.
A Harris Texas Farm out Agreement Providing For Multiple Wells with Production Required to Earn An Assignment is a contractual arrangement in the oil and gas industry where a farmer (the party seeking to earn an assignment) agrees to drill and produce a specified number of wells on an armor's (the party granting the assignment) property in Harris County, Texas. In this agreement, the farmer must meet certain production requirements to earn the assignment of a working interest in the leased property. Keywords: 1. Harris Texas: Refers to the geographical location of the agreement, specifically Harris County, Texas. 2. Farm out Agreement: A legal contract wherein the armor grants the farmer the right to drill and produce oil or gas wells on their property. 3. Multiple Wells: Indicates that the agreement stipulates drilling and production of more than one well. 4. Production Required: Specifies that the farmer must achieve a certain level of production to earn an assignment. 5. Assignment: Refers to the transfer or assignment of a working interest in the leased property from the armor to the farmer. Types of Harris Texas Farm out Agreements Providing For Multiple Wells with Production Required to Earn An Assignment may include: 1. Single Well Assignment: This type of agreement may require the farmer to drill and produce a single well to earn an assignment. 2. Multiple Well Assignment: In this case, the farmer is obligated to drill and produce multiple wells, typically more than one, to fulfill the terms of the agreement and earn an assignment. 3. Time bound Assignment: This agreement may have specific timelines within which the farmer must achieve the required production targets to earn the assignment. 4. Minimum Production Assignment: In this type of agreement, the farmer must meet a minimum production requirement to earn the assignment, ensuring that the leased property remains productive and commercially viable. It is important to note that the specific terms, conditions, and variations of Harris Texas Farm out Agreements Providing For Multiple Wells with Production Required to Earn An Assignment can vary between individual agreements.A Harris Texas Farm out Agreement Providing For Multiple Wells with Production Required to Earn An Assignment is a contractual arrangement in the oil and gas industry where a farmer (the party seeking to earn an assignment) agrees to drill and produce a specified number of wells on an armor's (the party granting the assignment) property in Harris County, Texas. In this agreement, the farmer must meet certain production requirements to earn the assignment of a working interest in the leased property. Keywords: 1. Harris Texas: Refers to the geographical location of the agreement, specifically Harris County, Texas. 2. Farm out Agreement: A legal contract wherein the armor grants the farmer the right to drill and produce oil or gas wells on their property. 3. Multiple Wells: Indicates that the agreement stipulates drilling and production of more than one well. 4. Production Required: Specifies that the farmer must achieve a certain level of production to earn an assignment. 5. Assignment: Refers to the transfer or assignment of a working interest in the leased property from the armor to the farmer. Types of Harris Texas Farm out Agreements Providing For Multiple Wells with Production Required to Earn An Assignment may include: 1. Single Well Assignment: This type of agreement may require the farmer to drill and produce a single well to earn an assignment. 2. Multiple Well Assignment: In this case, the farmer is obligated to drill and produce multiple wells, typically more than one, to fulfill the terms of the agreement and earn an assignment. 3. Time bound Assignment: This agreement may have specific timelines within which the farmer must achieve the required production targets to earn the assignment. 4. Minimum Production Assignment: In this type of agreement, the farmer must meet a minimum production requirement to earn the assignment, ensuring that the leased property remains productive and commercially viable. It is important to note that the specific terms, conditions, and variations of Harris Texas Farm out Agreements Providing For Multiple Wells with Production Required to Earn An Assignment can vary between individual agreements.
