Legal Definitions - farminor

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.

• Company A owns an oil-and-gas lease but does not have the resources to drill a well. They assign the lease to Company B, who agrees to drill a well. Company A is the farminor in this situation.
• John owns an oil-and-gas lease but is not interested in drilling a well. He assigns the lease to his friend, who is an experienced oil driller. John is the farminor in this situation.

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.