Farmouts: Critical Concepts and Practices

This class is a great one for landmen, land techs, lease title analysts, division order analysts, attorneys, paralegals, legal assistants, members of management, lenders, investors and anyone who needs to understand the widely used "Farmout Agreement."

It begins with an overview, starting with its history and how it is typically defined and distinguished from other agreements. Students will review requirements for validity and how particular types of farmout agreements or terms in the agreements are used (or misused). Students learn to apply knowledge of undivided interests, farmouts combined with other agreements, limitations as to depth or formation, assignments, drilling requirements, simple farmouts subject to "back-in" provisions, and farmouts and carried interests. Students will also learn about the costs recoverable by the farmee, such as expenses from blowouts and litigation, interest on expenditures for mineral exploration, farmor's retained interests and the extent of interests conveyed, as well as how and why farmouts create various interests or relationships. Discussions include gas balancing agreements, convertible overriding royalty payments payable to the farmor, working interest options, preferential purchase rights, the effect of hold harmless clauses, the performance expectations of the contracting parties, breach of contract, and damages when things go wrong.

Cases and practical exercises allow students to practice negotiating farmout agreements involving different deal terms.

Eligible for AAPL recertification credits.

Dr. Patrick Fitzgerald, Ph.D., Ed.D., J.D.

Dr. Patrick Fitzgerald is Senior Partner in the law firm Fitzgerald & Associates with offices in Dallas and Oklahoma City where his practice includes various areas of law related to the oil and gas industry. He is "of counsel" with a Denver law firm specializing in Oil and Gas Law. Concurrently, he is a Distinguished Visiting Industry Expert in Energy Management and Petroleum Land Practices in the Daniels College of Business at the University of Denver. He is also a Visiting Scholar in Finance in the Price College of Business at the University of Oklahoma and a Lecturer in Energy Finance with the University of Colorado Denver. At Texas Christian University, he is a Distinguished Scholar and Expert with the Energy Institute. He teaches various land management courses for the University of Texas at Austin and is an Affiliated Scholar in the Center for Global Energy, International Arbitration and Environmental Law at The University of Texas School of Law. He also teaches for the McGuire Energy Institute in the Cox School of Business of Southern Methodist University and for the American Association of Petroleum Landmen. Dr. Fitzgerald is the author of several soon to be published "must have" texts soon to be published by the American Association of Petroleum Landmen (AAPL) where Fitzgerald is a regular contributor to Landman.

G046131Q Oct 31 8:30 am - 4:30 pm
Thu  $300.00
($325.00 out-of-state)
Midland College PPDC Building
Registered: 1 7.0 Hours

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