lessor or a party acting on the lessor's behalf reasonably
believes to be valid and legally correct.
"Lessee." A person who has obtained the right to explore,
drill, stimulate, produce, market and sell oil, gas and natural
gas liquids, or any portion thereof, pursuant to a properly
executed lease.
"Lessor." The owner of the oil and gas in place, who
controls the oil and gas rights and has executed a lease.
Section 3. Protection of lessors.
A lessee may not retaliate by ceasing development or
production or take other reprisals against a lessor because the
lessor takes a good faith action.
Section 4. Remedies.
(a) Civil action.--A lessor who alleges a violation of
section 3 may bring a civil action in a court of competent
jurisdiction for appropriate injunctive relief or damages, or
both, within one year after the occurrence of the alleged
violation.
(b) Necessary showing of evidence.--A lessor alleging a
violation of this act must show by a preponderance of the
evidence that its action meets the definition of a good faith
action and that a retaliatory action was taken by the lessee
after it became aware of the good faith action of the lessor.
(c) Defense.--It shall be a defense to an action under this
section if the lessee proves by a preponderance of the evidence
that the action by the lessee was authorized under the terms of
the lease or occurred for legitimate business reasons.
Section 5. Enforcement.
A court that finds in favor of the lessor may order the
lessee to pay reasonable damages to the lessor and may impose a
20170SB0139PN0093 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30