A lessee of a renewable energy lease is not under a fiduciary obligation to his lessor, but the lessee 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 of the lessee to develop and operate the leased property.
La. R.S. 30:1163
Lessee's obligation to act as reasonably prudent operator
Known as the Louisiana Geologic Sequestration of Carbon Dioxide Act
The act spans §§ 30–30 (55 sections).
Acts 2023, No. 455, §1, eff
Official source: Louisiana State Legislature. Reproduced from public-domain Louisiana statutes; confirm against the official source for the current text. Not legal advice.