Louisiana Revised Statutes 30:1163 – 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 p
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Terms Used In Louisiana Revised Statutes 30:1163
- Contract: A legal written agreement that becomes binding when signed.
- Fiduciary: A trustee, executor, or administrator.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
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.