Prudent Operator Standard

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Prudent Operator Standard

 

 The lessee’s care in performing these implied obligations is measured by the “prudent operator” standard. H. Williams & C. Meyers, Oil And Gas Terms 452 (7th ed 1987)  Generally, courts have held that prudent operators do what “would be reasonably expected of operators of ordinary prudence, having regard to the interests of both lessor and lessee.” 5 H.Williams & C. Meyers, Oil And Gas Law, §806.3 at 36 (1989).  The prudent operator does not have to lose money. Id.

Copyright 2011 by Edward G, Hawkins. All rights reserved.