REASONABLY-PRUDENT-OPERATOR STANDARD

reasonably-prudent-operator standard.Oil & gas. The test generally applied to determine a

lessee’s compliance with implied lease covenants by considering what a reasonable, competent

operator in the oil-and-gas industry would do under the circumstances, acting in good faith and

with economic motivation, and taking into account the lessor’s interests as well as that of the

operator. — Also termed reasonable-prudent-operator standard; prudent-operator standard. [Blacks Law 8^th]