May 15th, 2010
8:30 am - 4:30 pm
Houston, Texas
Cost: $199 Per Attendee
($175 per attendee for groups of 5 or more)
This Course is Accredited for 6.5 AAPL Credits
Course Information
This course provides an overview of the widely used “Farmout” Agreement beginning with its history and how it is typically defined and distinguished from other relationships. Requirements for validity are reviewed and a review of how particular Farmout agreements and terms have been used and misused is considered. Specific topics and issues covered in this course include checkerboard arrangements-divided interests, undivided interests, Farmouts combined with other agreements, Farmouts involving federal units, limitations as to depth or formation, assignments, drilling requirements, simple Farmouts subject to “back- in” provisions, and whether Farmouts create a “carried interest.” Costs recoverable by the Farmee are discussed such as blowout expenses, interest on expenditures for mineral exploration and litigation expenses. We consider Farmor's retained interests and the extent of interests conveyed and discuss Farmouts as creating various interests or relationships.
Also included are Farmouts and gas balancing agreements, overriding royalty payments, triggering a working interest option, preferential purchase rights, effect of hold harmless clauses, performance, breach and damages when things go wrong. Students will negotiate various Farmout agreements involving various deal terms.
This program has been accredited for 6.5 RL/RPL continuing education credit(s), 6.5 CPL recertification credits(s).
Audience: Landmen, Contract Negotiators, Contract Specialists, Attorneys, Paralegals, Accountants, Division Order Analysts, Members of the Land Support Team, especially lease analysts, "Joint Account" Billing and Audit Personnel, Financial Analysts, Investors, Engineers, Geologists, Management, Production Personnel who need to know the ins and outs of oil and farmout agreements.
