Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 4/54)
Character Range: 1095837–1098987

the partners (not on the partnership), but may be discharged by any of them.
 (6) A partner must not intentionally refuse or fail to comply with that obligation.
Penalty: 10 penalty units.
 (7) Subsection (6) does not apply if another partner has already complied with that obligation.
Note: A defendant bears an evidential burden in relation to the matters in subsection (7), see subsection 13.3(3) of the Criminal Code.

Limits on giving a notice
 (8) Only one notice can be given in relation to the same trees.

Subdivision 40‑K—Farm‑in farm‑out arrangements

Guide to Subdivision 40‑K

40‑1095  What this Subdivision is about
      The costs and termination values of parts of interests in mining, quarrying or prospecting rights that are transferred under farm‑in farm‑out arrangements are reduced by the market value of the exploration benefits conferred under the arrangements.

Table of sections

Farm‑in farm‑out arrangements and exploration benefits
40‑1100 Meaning of farm‑in farm‑out arrangement and exploration benefit

Consequences for transferors
40‑1105 Treatment of certain exploration benefits received under farm‑in farm‑out arrangements
40‑1110 Cost of split interests resulting from farm‑in farm‑out arrangements
40‑1115 Deductions relating to receipt of exploration benefits
40‑1120 Cost base and reduced cost base of exploration benefits etc.
40‑1125 Effect of exploration benefits on the cost of mining, quarrying or prospecting information

Consequences for transferees
40‑1130 Consequences of certain exploration benefits provided under farm‑in farm‑out arrangements

Farm‑in farm‑out arrangements and exploration benefits

40‑1100  Meaning of farm‑in farm‑out arrangement and exploration benefit
 (1) A farm‑in farm‑out arrangement is an *arrangement under which:
 (a) an entity (the transferor) transfers, or agrees to transfer, part of the entity's interest in a *mining, quarrying or prospecting right to another entity (the transferee); and
 (b) in exchange for the transfer, the transferee provides to the transferor one or more *exploration benefits.
 (2) The transferee provides an exploration benefit to the transferor if:
 (a) the transferee:
 (i) conducts *exploration or prospecting for *minerals, or quarry materials, obtainable by *mining and quarrying operations; or
 (ii) undertakes to conduct exploration or prospecting for minerals, or quarry materials, obtainable by mining and quarrying operations; or
 (iii) funds, on the transferor's behalf, expenditure that the transferor incurs in relation to exploration or prospecting by the transferor or another entity (other than the transferee); or
 (iv) undertakes to fund, on the transferor's behalf, expenditure that the transferor incurs in relation to exploration or prospecting by the transferor or another entity (other than the transferee); and
 (b) the exploration or prospecting relates to the part of the transferor's interest in the *mining, quarrying or prospecting right that the transferor does not transfer, or agree to transfer, under the arrangement; and
 (c) in a case where the transferor conducts the exploration or prospecting—expenditure