prudent operator rule

prudent operator rule
The rule that a stipulation in an oil and gas lease on a royalty basis that development shall be at the discretion of the lessee does not leave development to the uncontrolled will of the lessee, he being required to do by way of development that which a prudent operator would deem just and proper under the circumstances. 24 Am J1st Gas & O § 62. See the ordinary prudent man.

Ballentine's law dictionary. . 1998.

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