ELR Citation: ELR 20260
No(s). 09-C-0449 (La. Oct 20, 2009)

The Louisiana Supreme Court held that property owners who leased their land for oil and gas development were not required to give oil companies pre-suit notice or an opportunity to perform prior to filing their suit against the companies for property contamination. The companies argued that Article 136 of the Louisiana Mineral Code requires plaintiffs to provide defendants with written notice and a reasonable opportunity to perform, prior to filing suit, where there are allegations that a mineral lessee breached an obligation to operate the leased property as a reasonably prudent operator. But the property owners' claims relate to the remediation/restoration of their property as a result of contamination allegedly caused by companies' oil and gas operations. Claims for property damage and remediation/restoration are not "claims for failure to develop and operate as a prudent operator" under Article 136. Because there is no allegation that the companies failed to search, produce, or market oil under the leases, there is no allegation that the companies failed to properly develop and operate the leases. Thus, the owners were not required to provide the companies with pre-suit notice and an opportunity to perform prior to filing suit.