Reassignment as a term is also a challenge for the development of a manner applicable according to the legal order of the country in which the issuing instrument is issued and according to the welfare agreement (if it is different). Many legal issues should be considered, including the possibility of reallocation, the applicability of a trust contract, as well as the requirements and administrative approval date of the reassignment, and possible liability for additional allocation bonuses or other payments for such a reallocation. Since 1990, the Association of International Petroleum Negotiators (AIPN) has entered into standard contracts for use in a wide range of international energy industry agreements – joint enterprise agreements, agricultural agreements, gas sales and gas transmission contracts, and contracts for the sale and sale of liquefied natural gas, to name a few. If there is a cash payment element of the consideration, the parties have several options to agree on the structure of the cash payment: including the date of payment (linked to the parties` position regarding the transfer date of operating interest; (z.B. when the contract is signed or farmout interests are transferred to the buyer/farmer) and to whom they are paid and on what basis (i.e. in reimbursement of past or historical costs, as a bonus or to the operator under the joint operating contract for cash calls as an advertising call or carry). It is important to note that the ASPA model adopts English law as an applicable law and that, therefore, English legal terms pass through the DNA of the document. In particular, certain legal concepts may be treated differently under English law (unlike another jurisdiction) and may have different legal consequences. For example, English legislation (except for trusts and insurance contracts) generally does not impose a tacit duty in good faith and the performance of contractual obligations may require different degrees of effort depending on the drafting (for example. B the best efforts are a heavier burden than reasonable efforts). The concept of representations, guarantees and compensation also has a different meaning than that of American courts such as New York law. However, the AIPN has rightly established the ASPA model on the basis of English law: it is the most popular legal choice of the parties for international upstream asset purchase and sale transactions. When I teach the aIPNs course on the Modell-International Farmout Agreement of the Association of International Petroleum Negotiator (AIPN), I tell participants that farmouts (and the model form) are very similar to the “Choose Your Own Adventure” books that I like to remember reading when I was a child.
For those of you, unfamiliar with this literary genre, the “Choose Your Own Adventure” books are a style of children`s literature (particularly popular in the 1980s) written in the second person (i.e. from your point of view) that allows the reader to make decisions for the protagonist throughout the story and, at each point of decision, the reader is guided by another page (and another result), guided by his or her response. It is the work obligation that distinguishes a single farmout contract from a standard sales contract.