Picture of Alberta Farmout Agreement with Substitute Well Clauses Picture of Alberta Farmout Agreement with Substitute Well Clauses Picture of Alberta Farmout Agreement with Substitute Well Clauses Picture of Alberta Farmout Agreement with Substitute Well Clauses

Alberta Farmout Agreement with Substitute Well Clauses

Buy and download this Farmout Agreement for Alberta oil and gas properties which includes provisions for a substitute well.

  • Drilling of Earning Well. The farmee will begin drilling the earning well at its sole cost and risk. The well will be drilled to the contract depth and the farmee will log and test, and either complete, equip or abandon the well in accordance with the agreement.
  • Substitute Well. The agreement contains provisions for drilling a substitute well if serious difficulties are encountered and the first well is abandoned.
  • Calculation of Earned Interest. The farmee's earned interest in the farmout lands is calculated as undivided 100% of Farmor's interest in the producing zones, undivided 50% of the remainder of the lands.
  • Royalty Calculation. The agreement sets out how the farmor's royalty will be calculated on the farmee's interest in crude oil and crude naphtha, natural gas, and all other hydrocarbons.
  • Payment of Costs. The farmor is responsible for all charges payable with respect to the farmout lands.
  • Governing Law. This Farmout Letter Agreement template is intended to be used only for lands within the Province of Alberta, Canada.
  • Format. This is a downloadable legal form which can be modified and re-used. Available as a MS Word document. Other formats available on request.
Document Type: Microsoft Word
Last Updated: 24-November-2024
SKU: 704
$29.99
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Alberta Farmout and Option Agreement

Prepare a Farmout and Option Agreement with this document template for Alberta oil and gas wells.

  • Test Well. The farmor will start drilling of the test well at its sole cost and risk. The farmee will then continue drilling to the contract depth, log and test, and either complete, equip or abandon the test well in accordance with the agreement.
  • Option Well. The agreement includes provisions for drilling an option well if serious difficulties are encountered with the test well.
  • Reimbursement of Costs. The farmee will reimburse the farmor on a per diem basis for rentals and penalties payable under the title document.
  • Earned Interest Calculation. The farmee's earned interest in the farmout lands will be 100% of the farmor's interest in the producing zones, and 50% of the remainder of the lands.
  • CAPL Procedures to Apply. The CAPL PASC Accounting Procedure and specified clauses of the Operating Procedure will apply to the agreement.
  • This downloadable form is intended for use only in the Province of Alberta, Canada.
  • Available in MS Word format.
$29.99
Picture of Alberta Farmout and Participation Agreement

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.
  • Available as a downloadable MS Word template.
$29.99
Picture of Alberta Pooling and Farmout Agreement

Alberta Pooling and Farmout Agreement

Prepare a Pooling and Farmout Agreement to pool several interests in Alberta oil and gas properties with this downloadable contract template.

  • The agreement deals with ownership, operation, development of and production of petroleum substances from the pooled lands.
  • Operations on the pooled lands will be conducted without regard to boundaries of the title documents, as if the pooled lands were covered by a single petroleum and natural gas lease.
  • Each party holds its title documents in trust for the other parties, insofar as they relate to the pooled lands.
  • Production, revenue and expenses are allocated to the parties according to their respective pooled interest.
  • The pooling arrangement will terminate if the farmee fails to earn its earned interest.
  • The farmee will spud the test well at its sole cost and risk, and will then continue drilling to the contract depth, log and test, and either complete or cap or abandon the well in accordance with the agreement and the Regulations.
  • Provisions for drilling a substitute well if serious difficulties are encountered and the first well is abandoned.
  • The CAPL Operating Procedure will govern.
  • This Alberta Pooling and Farmout Agreement can be easily edited to fit your circumstances.
$29.99