Farmout Agreement: Depth Limitation

摘要

This case involves die interpretation of a depth limitation contained in a farmout agreement. The agreement states that "[t]he [assignment. . . shall be limited in depth to 100 feet below the deepest producing interval as obtained in the test well . . .." The term's purpose was to create a subsurface boundary dividing the farmor and farmee's interests, assuming the farmee earned an assignment.