Prudent operator standard

  1. Law
  2. Arkansas Code
  3. Natural Resources and Economic Development
  4. Oil, Gas, and Brine
  5. Oil And Gas Leases And Lease Interests
  6. Leases Generally
  7. Prudent operator standard

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  1. (a) A mineral lessee under an oil and gas lease does not owe a fiduciary duty or a fiduciary obligation to the mineral lessor.

  2. (b) The mineral lessee shall:

    1. (1) Perform the covenants of the lease in good faith; and

    2. (2) Develop and operate the leased mineral estate as a prudent operator for the mutual benefit of the mineral lessor and mineral lessee.


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