Farmout agreement: a story short but not always sweet

Journal Article · · Natural Resources and Environment; (United States)

OSTI ID:6417507

Hemingway, R W

The informality of the farmout agreement in oil and gas leases masks traps for the unwary, especially because of recent attitudes and rulings of the Internal Revenue Service. Usually in letter form, the farmout agreement may not carry an acknowledgement that would ensure recordation. The substantive provisions of the farmout agreement cover several areas: the description of the activities and performance required of the farmee, the rights that may be earned by the farmee and retained by the farmor, and the assignment of these rights to the farmee. The author defines pertinent terms, such as those relating to performance, and legal aspects of these provisions. A checklist to help in the preparation of farmouts accompanies the article.

• Research Organization: Univ. of Oklahoma, Norman
• OSTI ID: 6417507
• Journal Information: Natural Resources and Environment; (United States), Journal Name: Natural Resources and Environment; (United States) Vol. 1:2
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000* -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002 -- Energy Planning & Policy-- Petroleum
DRILLING
GEOLOGIC DEPOSITS
LAND LEASING
LEASES
LEASING
LEGAL ASPECTS
MINERAL RESOURCES
NATIONAL ORGANIZATIONS
PERFORMANCE
PETROLEUM DEPOSITS
RESOURCES
US DEPARTMENT OF TREASURY
US IRS
US ORGANIZATIONS
WELL DRILLING