Duties Act 2001

An upfront 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—

the farmor must make 1 or more transfers to the farmee of a stated interest in the exploration authority, each interest being less than 100% of the total interest in the authority; and

on the transfer of each interest, the interest is held by the farmee subject to the farmee spending a stated amount (an exploration amount) on relevant exploration or development—

after the agreement is entered into; and

on or before the expenditure completion date for the amount; and

the farmee must, if the obligation under the agreement mentioned in paragraph (b) is not complied with for the interest transferred, transfer the interest back to the farmor.

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 held by the farmee subject to an obligation mentioned in subsection (1)(b).