Prudent operator standard

Ark. Code Ann. § 15-73-207 — under Oil And Gas Leases And Lease Interests.

Ark. Code Ann. § 15-73-207

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

(b) The mineral lessee shall:(1) Perform the covenants of the lease in good faith; and(2) Develop and operate the leased mineral estate as a prudent operator for the mutual benefit of the mineral lessor and mineral lessee.

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

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