protection covenant

protection covenant. Oil & gas. The implied promise in an oil-and-gas lease that the lessee will protect the property against the loss of oil and gas by drainage from the producing reservoir by drilling one or more offsetting wells. • The covenant applies only if a reasonably prudent operator would drill the additional wells. — Also termed covenant to protect against drainage. See REASONABLY PRUDENT-OPERATOR STANDARD.

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词条贡献者

译者Terence，毕业于国内顶尖法学院，擅长翻译各种与复杂结构性融资相关的法律文件。