Farmout Acreage Clause Samples
The Farmout Acreage clause defines the specific area of land or mineral rights that are subject to a farmout agreement between parties, typically in the oil and gas industry. This clause details the boundaries, size, and legal description of the acreage being transferred or made available for exploration and development by the farmee. By clearly identifying the relevant acreage, the clause ensures both parties understand the scope of the agreement and prevents disputes over which land is included, thereby providing clarity and certainty in the transaction.
Farmout Acreage. Farmor claims, without warranty, to own certain Oil and Gas Leases, all with various dates which are described in detail on Exhibit "A" and Exhibit "B" which is attached hereto and made a part hereof for all purposes and are recorded in the Official Public Records of C▇▇▇▇▇▇▇ County, Texas, (herein referred to as "Said Leases"). The Said Leases covers the following lands and premises (herein sometimes referred to as the ("Farmout Acreage") as also set out in Exhibit "A" and Exhibit "B" attached hereto and made a part of this Farmout Agreement.
Farmout Acreage. During the term of this Agreement Producer shall be entitled to farmout to a third party undeveloped acreage covered by an oil, gas and mineral lease or mineral fee interest held by Producer (including, but not limited to, a non-producing horizon under a producing lease) in the event Producer, acting as a prudent operator, determines that such a farmout is in the best interests of Producer. In the event of such a farmout, Producer will exercise reasonable efforts to (i) retain a call on gas produced from the acreage subject to the farmout, provided that such a call does not diminish the return to Producer when compared to the return in the absence of the call; or (ii) minimize the period of time elapsing before Producer is entitled to take and market its proportionate share of the gas produced from the farmout acreage. Gas produced from farmout acreage shall not be Committed Gas under this Agreement until such time that Producer is entitled to take and market such gas and has elected to do so.
Farmout Acreage. During the term of this Agreement, UPR shall be entitled to farm out to any third Person any acreage covered by an oil, Gas and mineral lease or mineral fee interest held by UPR. If there is production from acreage subject to a farmout, Gas produced from such acreage shall be Committed Gas, but only if such acreage is also committed to a gathering or processing agreement with UPFUELS on the date of such farmout. Except as specifically provided in the immediately preceding sentence, Gas produced from farmout acreage shall not be Committed Gas under this Agreement.
Farmout Acreage. In the event that Farmee elects to proceed with the development of the Farmout Acreage pursuant to the terms provided for herein, any and all cost, risk and expense associated with such operations shall be solely for Farmee's account, unless and until the effective time of Farmor's conversion of its Reserved ORRI (as hereinbelow defined) to a working interest as provided for in Section 3.3, below.
Farmout Acreage. During the term of this Agreement CUSA shall be entitled to farmout to a third party undeveloped acreage covered by an oil, gas and mineral lease or mineral fee interest held by CUSA in the event CUSA, acting as a prudent operator, determines that such a farmout is in the best interests of CUSA. In the event of such a farmout, CUSA will exercise reasonable efforts to (i) retain a call on gas produced from the acreage subject to the farmout, provided that such a call does not diminish the return to CUSA when compared to the return in the absence of the call; or (ii) minimize the period of time elapsing before CUSA is entitled to take and market its proportionate share of the gas produced from the farmout acreage. Gas produced from farmout acreage shall not be Committed Gas under this Agreement until such time that CUSA is entitled to take and market such gas.
Farmout Acreage. 6 2.2.2 Pre-Effective Date Commitments................................................6 2.2.3