The Nature and Effect of Conservation Orders and Possible Civil Liabilities that May Result from Violations of Conservation Orders

Abstract

An oil operator is subject to a vast number of conservation orders in the conduct of his oil and gas operations. This article considers the civil liabilities that an operator may be subject to for breach of a conservation order. It suggests that with respect to liability to a third party for breach of a conservation order, an operator may be liable on the basis of a breach of statutory duty, or alternatively, the breach of the conservation order may be considered as evidence of negligence per se. With respect to contractual liability to his lessor or to other contracting parties, this article advises that a violation of a conservation order might constitute a breach of contract.