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Legal Memorandum: Privilege of the Operator and Non-operator

Issue: Under Louisiana law, what is required to sustain a plaintiff’s claim against a defendant to enforce an operator’s privilege over the proceeds of the sale of hydrocarbons?

Area of Law: Litigation & Procedure
Keywords: Operator's privilege; Proceeds of the sale of hydrocarbons
Jurisdiction: Louisiana
Cited Cases: None
Cited Statutes: La. Rev. Stat. §§ 9:4882-9:4883, Article 4889; La. Rev. Stat. §§ 9:4871-9:4872
Date: 12/01/2013

La. Rev. Stat. §§ 9:4882-9:4883 grant an operator’s privilege over the proceeds of the sale of hydrocarbons “to secure payment of all obligations incurred in the conduct of operations which the non-operator is personally bound to pay or reimburse.”  La. Rev. Stat. § 9:4882.  Article 4889 provides that this privilege may be enforced according to the provisions of La. Rev. Stat. §§ 9:4871-9:4872, which allows for enforcement of the operator’s privilege by a writ of sequestration. 

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