Alberta Farmout and Participation Agreement
Prepare a Farmout and Participation Agreement for Alberta oil and gas wells with this fully editable template.
- Encumbrances. If the interest of any party to the Agreement becomes encumbered, such encumbrance will be charged to and paid by that party.
- No Warranty. The farmor makes no warranty of title to the farmout lands or the title documents.
- Test Well. The farmee will spud the test well and drill to at least contract depth, lot and test, and either complete, cap or abandon it in accordance with the agreement and the Regulations.
- Substitute Well. The agreement contains provisions for drilling a substitute well.
- Insurance. The farmee is responsible for obtaining and maintaining control of well insurance.
- Earned Interest Calculation. The farmee's earned interest in the farmout lands is calculated as 100% of the farmor's interest down to earning depth in the lands and title documents that comprise the test well spacing unit, subject to encumbrances, and a specified percentage of the remainder.
- Option Well. The template also includes clauses for option well election.
- Percentage Interest. Provisions for calculating each party's share of expenses and percentage of interest.
- Jurisdiction. This Farmout and Participation Agreement is governed by the laws of the Province of Alberta.
Last Updated: 24-October-2017