Simple English definitions for legal terms
Read a random definition: recurring closing costs
Term: FARMINOR
Definition: A farminor is someone who leases land for oil and gas exploration but then assigns the lease to another person who agrees to drill a well. This person is also known as a farmouter or farmor.
FARMINOR
A farminor is an oil-and-gas lessee who assigns the lease to another party, who agrees to drill a well. It is also known as farmoutor or farmouter.
These examples illustrate the definition of farminor, which is a lessee who assigns the lease to another party who agrees to drill a well. In both cases, the original lessee did not have the resources or interest to drill a well, so they assigned the lease to someone else who did. This is a common practice in the oil-and-gas industry, as it allows companies or individuals to benefit from their leases without having to invest in drilling equipment or expertise.