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.
The Harris Texas Farm out Agreement — Short Form is a legally binding document that outlines the terms and conditions of an agreement between two parties involved in the oil and gas industry. This agreement essentially allows one party, known as the "farmer," to gain the right to explore, develop, and produce oil and gas resources on a property owned by the other party, known as the "armor." Keywords: Harris Texas, Farm out Agreement, Short Form, oil and gas industry, explore, develop, produce, resources, property, farmer, armor. There might be variations or different types of Harris Texas Farm out Agreement — Short Form, which can include: 1. Harris Texas Farm out Agreement — Exploration Only: This type of agreement focuses solely on granting the farmer permission to explore the property for potential oil and gas resources. 2. Harris Texas Farm out Agreement — Development Only: This variant of the agreement specifically allows the farmer to develop and produce oil and gas once the resources have been discovered and proven. 3. Harris Texas Farm out Agreement — Exploration and Development: This type of agreement combines the provisions of both exploration and development, permitting the farmer to actively search for oil and gas reserves and proceed with extraction and production activities upon successful exploration. 4. Harris Texas Farm out Agreement — Partial Assignment: This form of the agreement involves the farmer gaining partial interest or ownership in the property's oil and gas rights, allowing them to participate in exploration and development activities while sharing the associated costs and profits with the armor. Overall, the Harris Texas Farm out Agreement — Short Form provides a structured framework for parties involved in the oil and gas sector to collaborate and negotiate terms for the exploration, development, and production of valuable resources on a specified property.The Harris Texas Farm out Agreement — Short Form is a legally binding document that outlines the terms and conditions of an agreement between two parties involved in the oil and gas industry. This agreement essentially allows one party, known as the "farmer," to gain the right to explore, develop, and produce oil and gas resources on a property owned by the other party, known as the "armor." Keywords: Harris Texas, Farm out Agreement, Short Form, oil and gas industry, explore, develop, produce, resources, property, farmer, armor. There might be variations or different types of Harris Texas Farm out Agreement — Short Form, which can include: 1. Harris Texas Farm out Agreement — Exploration Only: This type of agreement focuses solely on granting the farmer permission to explore the property for potential oil and gas resources. 2. Harris Texas Farm out Agreement — Development Only: This variant of the agreement specifically allows the farmer to develop and produce oil and gas once the resources have been discovered and proven. 3. Harris Texas Farm out Agreement — Exploration and Development: This type of agreement combines the provisions of both exploration and development, permitting the farmer to actively search for oil and gas reserves and proceed with extraction and production activities upon successful exploration. 4. Harris Texas Farm out Agreement — Partial Assignment: This form of the agreement involves the farmer gaining partial interest or ownership in the property's oil and gas rights, allowing them to participate in exploration and development activities while sharing the associated costs and profits with the armor. Overall, the Harris Texas Farm out Agreement — Short Form provides a structured framework for parties involved in the oil and gas sector to collaborate and negotiate terms for the exploration, development, and production of valuable resources on a specified property.
