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Simple English definitions for legal terms
farminee
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A quick definition of farminee:
Term: FARMINEE
Definition: A farminee is a person or company that is given a lease to drill for oil and gas on a piece of land. They are responsible for drilling a well and extracting the resources from the land. It is also known as a farmee or farmoutee.
A more thorough explanation:
FARMINEE
A farminee is a sublessee in the oil and gas industry who is assigned a lease for the purpose of drilling a well. It is also known as a farmee or farmoutee.
Example 1: XYZ Oil Company leases a piece of land for oil and gas exploration. They then assign the lease to ABC Drilling Company, who will be responsible for drilling the well. ABC Drilling Company is the farminee in this scenario.
Example 2: John owns a small oil and gas company and wants to expand his operations. He decides to become a farminee and takes on a lease from a larger company to drill a well on their land.
These examples illustrate how a farminee is a sublessee who is assigned a lease for the purpose of drilling a well. In both examples, the farminee is responsible for the drilling process and any associated costs.