Sheet no 49 effective july 11 2018 community based form
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AREA OF MUTUAL INTEREST AGREEMENT
State: County:
First Party: (Name and Address)
Second Party: (Name and Address)
Effective Date: First Party and Second Party, named above (sometimes collectively referred to as the
“Parties,” or individually as a “Party”), own leasehold interests created by oil and ga s leases
(“Leases”) on lands located in the state and county named above. To facilitate the coordinated
acquisition of additional Leases and exploration for and development of oil, gas, and ot her
minerals from lands located in the general area of the Parties’ Leases, the Parti es desire to enter
into this Agreement to create an Area of Mutual Interest (the “AMI”).
In consideration of the mutual benefits to be derived by each Party resulting from the
terms of this Agreement, the Parties agree as follows:
1. The AMI shall encompass those lands described on Exhibit “A” to this Agreement, which
lands are depicted on the Plat attached to this Agreement as Exhibit “B,” and the Parties each
contribute to the AMI, the Leases each of them own, as described in Exhibit “C,” l ocated with
the AMI.
2. It is anticipated that Leases on lands within the AMI will be obtained by eit her First
and/or Second Party, or by third parties acting on behalf of either of the Parties. It is agre ed that
any Leases obtained on land within the AMI by either First or Second Party, or by third parties
acting on behalf of either of the Parties, after the Effective Date, shall be owned in the following
proportions:
First Party (Percentage Interest Owned)
Second Party (Percentage Interest Owned)
3. The Parties agree to use their best efforts, when obtaining Leases within the AMI, to
secure the Leases on substantially the same form of lease as attached to this Agre ement as
Exhibit “D.”
4. Within ______ days of obtaining a Lease or Leases on lands within the AMI, the Party
obtaining the Lease or Leases shall deliver to the other Party an assignment, in recordable form,
assigning the percentage ownership in the Lease or Leases, as provided in paragraph 2 above.
This assignment of oil and gas lease shall be on the same form of assignment as provided on
Exhibit “E” to this Agreement.
5. If either Party, including any assigns or affiliates of the Parties, amend, extend, or renew
a Lease or Leases on land within the AMI, the Lease or Leases shall be owned by First Party and
Second Party in the same proportions set forth in paragraph 2 above. Within ______ days of the
execution and delivery of the amended, extended, or renewed Lease, the Party obtaining t he
amendment, extension, or renewal shall execute and deliver to the other Party an a ssignment of
the Lease. The assignment shall be on the same form of assignment as Exhibit “E.”
6. This Agreement shall continue for a term of ______ from the Effective Date provided
above. First Party and Second Party shall, however, have the right to terminate this Agreem ent
prior to the end of such ______ term by giving the other Party ______ days advance written
notice. If First Party or Second Party make the election to terminate this Agreeme nt, the
terminating Party shall not have the right to obtain Leases on land in the AMI until the expiration
of the ______ term provided above. Any Leases on lands within the AMI obtained during the
remainder of the ______ term shall be owned by the Party that did not terminate this Agree ment.
In any case, at the end of the ______ term, First Party and Second Party shall be free t o obtain oil
and gas leases on land within the AMI without any obligation to assign a part of such Lea ses to
the other Party.
All Exhibits referred to and attached are incorporated into this Agreement for all
purposes.
This Agreement shall be binding on and will inure to the benefit of the Parties and their
respective heirs, personal representatives, successors, and/or assigns.
This Agreement is signed by the Parties as of the date of the acknowledgment of their
respective signatures below, but shall be effective for all purposes as of the Effective Da te stated
above.
First Party
Second Party
(acknowledgment)
[Exhibit “A”: Description of Lands included in AMI]
[Exhibit “B”: Plat of AMI]
[Exhibit “C”: Schedule of Leases owned by the Parties]
[Exhibit “D”: Form of Oil and Gas Lease]
[Exhibit “E”: Form of Assignment]
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