farmout-agreement

name	farmout-agreement
title	Farmout Agreement
description	Drafts U.S. upstream oil and gas farmout agreements transferring working interests through earn-in obligations. Use when drafting farmout/farm-in agreements, defining earning well requirements, negotiating farmee/farmor terms, integrating JOA/AMI provisions, or handling reassignment and reversion mechanics.
author	CaseMark
author_url	https://github.com/CaseMark/skills/tree/main/skills/legal/farmout-agreement
license	Apache-2.0
version	0.1.0
execution_mode	open
jurisdiction	us
practice	energy
language	en
tags	["agreement","drafting","regulatory","transactional"]

Farmout Agreement

Drafts a recordable farmout agreement defining earning obligations, earned interests, and post-earn operations for U.S. oil and gas properties.

Prerequisites

Collect before drafting:

• Parties: names, entity types, formation jurisdictions, addresses, signing authority
• Leases: schedule with recording data, current WI/NRI, all burdens
• Contract area: legal description, map, depth/formation limits
• Earning terms: well count, location, depth/formation, commencement deadline, completion standard, dry hole rules, substitute well rules
• Costs: pre-earn allocation (typically 100% Farmee), post-earn sharing
• JOA: form, version year, operator designation, negotiated deviations
• AMI (if applicable): boundaries, term, offer mechanics, exclusions
• Title: examination window, title standard, cure timeline, remedies
• Regulatory: state-specific filing and recording requirements

Workflow

1. Validate Inputs

Confirm before drafting:

• Contract area description and exhibit references
• WI/NRI math reconciled with all burdens
• Earning well location and depth criteria specified
• Deadlines and force majeure triggers defined
• Operator and JOA form/version identified

2. Build Exhibits

Exhibit	Content
A	Lease schedule with recording data and WI/NRI by lease
B	Legal description and contract area map
C	Earning well location (plat or coordinates)
D	JOA form and any addenda
E	AMI map and description (if used)
F	Form of Assignment and Bill of Sale
G	Memorandum of Farmout (if recording summary only)

3. Draft Agreement Sections

Draft in this order: