Farm out (in) arrangement

{
  "id": "MLC-T-ENE-000759",
  "term": "Farm out (in) arrangement",
  "field": "Energy",
  "definition": "An arrangement, used primarily in the oil and gas industry, in which the owner or lessee of mineral rights (the first party) assigns a working interest to an operator (the second party), the consideration for which is specified exploration and/or development activities. The first party retains an overriding royalty or other type of economic interest in the mineral production. The arrangement from the viewpoint of the second party is termed a \"farm-in arrangement.\"",
  "references": [
    "EIA Glossary"
  ],
  "url": "https://mlchart.com/terminology/energy/farm-out-in-arrangement/"
}