Oil & Gas Litigation- Third in a Series

oil wellThis will be my final installment on the duties of a lessee/operator as it relates to an oil and gas lease. The first post on this topic discussed the implied duty of an operator to protect the leasehold from drainage. The second post discussed the implied duty of the operator to develop the leasehold as a reasonably prudent operator.

The third implied duty of an operator is the duty to reasonably market the oil and gas produced from the premises. This requires the lessee to market with due diligence and to obtain the best price reasonably possible. There is not as much litigation with respect to this duty since most operators are seeking to sell their product for the highest possible price.

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