HLS 12RS-935 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 863
BY REPRESENTATIVE MONTOUCET
MINERALS: Provides for the lessee's obligation to restore the leased premises
AN ACT1
To amend and reenact R.S. 31:122, relative to a mineral lessee; to provide for a lessee's2
obligation to restore property to its original condition; and to provide for related3
matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 31:122 is hereby amended and reenacted to read as follows: 6
ยง122. Lessee's obligation to act as reasonably prudent operator7
A mineral lessee is not under a fiduciary obligation to his lessor, but he is8
bound to perform the contract in good faith and to develop and operate the property9
leased as a reasonably prudent operator for the mutual benefit of himself and his10
lessor. Parties may stipulate what shall constitute reasonably prudent conduct on the11
part of the lessee. Unless the parties otherwise agree by lease or other contract, the12
lessee's duties shall include the obligation to restore the leased premises to the13
condition it was in before oil and gas operations took place.14
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Montoucet HB No. 863
Abstract: Provides relative to a lessee's obligation to restore leased property to the
condition it was in before oil and gas operations began. HLS 12RS-935 ORIGINAL
HB NO. 863
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Present law provides that a lessee is not under fiduciary obligation to his lessee but is bound
to perform the contract in good faith.
Proposed law retains present law and provides that a lessee shall restore leased property to
the condition it was in before oil and gas operations began.
(Amends R.S. 31:122)