DUTIES ACT 2001 - SECT 84C What is a deferred farm-in agreement

DUTIES ACT 2001 - SECT 84C

84C What is a deferred farm-in agreement

(1) A
"deferred farm-in agreement" is a written agreement entered into by a farmor and another person (the
"farmee" ) in relation to an exploration authority, under which—

(a) the farmee is entitled to 1 or more transfers from the farmor of a stated interest in the exploration authority, each interest being less than 100% of the total interest in the authority; and

(b) the entitlement to each transfer arises only if the farmee spends a stated amount (an
"exploration amount" ) on relevant exploration or development—

(i) after the agreement is entered into; and

(ii) on or before the expenditure completion date for the amount.

(2) However, if the farm-in agreement is a 100% transfer farm-in agreement, the last interest in the exploration authority to be transferred under the agreement need not be subject to an obligation mentioned in subsection (1) (b) .