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.
