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Legal Definitions - farmee
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Definition of farmee
Definition: Farmee is a term used in the oil and gas industry to refer to a sublessee who is assigned a lease for the purpose of drilling a well. It is also known as farmoutee or farminee.
Example: ABC Oil Company leases a piece of land for oil and gas exploration. They then assign the lease to XYZ Oil Company, who becomes the farmee and drills a well on the land.
This example illustrates how a farmee is a sublessee who takes over the lease from the original lessee for the purpose of drilling a well.
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Simple Definition
Term: FARMEE
Definition: A farmee 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's like when you borrow a toy from a friend to play with it for a while. The friend is the owner of the toy, but they let you use it for a specific purpose. In the same way, the landowner is the owner of the land, but they let the farmee use it to extract oil and gas.
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