RS 30:1163 - Lessee's obligation to act as reasonably prudent operator 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. Acts 2023, No. 455, §1, eff. June 28, 2023.
Louisiana Legal Code