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Code · Louisiana · Title 31 — Mineral Code

RS 31:122

87 words·~1 min read·/la/title-31/31-27

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RS 31:122
PART 4. THE OBLIGATIONS OF THE LESSEE
§122. Lessee's obligation to act as reasonably prudent operator
A mineral lessee is not under a fiduciary obligation to his lessor, but he is bound to perform the contract in good faith and to develop and operate the property leased as a reasonably prudent operator for the mutual benefit of himself and his lessor. Parties may stipulate what shall constitute reasonably prudent conduct on the part of the lessee.
Acts 1974, No. 50, §122, eff. Jan. 1, 1975.
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