Gulf Oil Corp. 000 X.X. 2d 903 (Tex. 1982), to the extent such instruments are made available to Company’s or Remora Holdings, upon Company or Remora Holdings’ reasonable request to the Applicable Contributing Party, or are publicly available) that as of the Execution Date and subject to and except for Permitted Liens:
Gulf Oil Corp. 637 S.W.2d 903, 908 (Tex. 1982).
Gulf Oil Corp. 82 an area of mutual interest (AMI) clause in a letter agree- ment assigning the farmee’s rights under a farmout agreement provided that if any of the parties acquired any additional leasehold interests af- fecting “the lands covered by said farmout agreement, or any additional interest . . . under lands in the area of the farmout acreage,” the interests acquired would be subject to the provisions of the AMI.83 The farmout well that was drilled was marginal, but it earned the acreage.84 The as- signment of the leases in the farmout block referred to an operating 74. Id. at 826. 75. Id. 76. Id. 77. Id. 78. Id. at 827.
Gulf Oil Corp. 637 S.W.2d 903, 911 (Tex. 1982). that a burden created by a covenant have a direct impact upon the land itself and its value, not just the parties personally.92 The farmee’s rights contained in a farmout agreement can directly impact the farmor’s use and enjoyment of the underlying leasehold, thereby satisfying the touch and concern element. First, by farming out its right to enter, drill and develop the leasehold (which is a real property interest under Texas law),93 a farmor creates a burden on the use of its real property in favor of the farmee that binds any successors.94 Second, the farmor’s leasehold is burdened by its obligation, upon drilling and completion of a well by the farmee, to assign to the farmee the portion of its working interest to which the farmee is entitled under the farmout agreement.95 Third, a farmout agreement impacts the value of the underlying leasehold since the farmor cannot transfer the leasehold separate and apart from the farmee’s right to drill.
