Reasonably Prudent Operator definition

Reasonably Prudent Operator means an operator that operates to maximize economic return to both Lessor and Lessee, taking into account market conditions, comparable production activities in the same field or area and all applicable regulatory conditions.

Reasonably Prudent Operator means conducting the applicable activities as a reasonably prudent operator, in a good and workmanlike manner, with due diligence and dispatch, in accordance with good oilfield practice, and in compliance with applicable law and regulation, but with no liability for losses sustained or liabilities incurred, except as such may result from gross negligence or willful misconduct.

Reasonably Prudent Operator has the meaning ascribed to it in Article 7.12(B)(2). 1. 138 Received has the meaning ascribed to it in Article 19.

Examples of Reasonably Prudent Operator in a sentence

• In exercising its powers and performing its duties as Assignee’s agent and representative, Assignor shall act in good faith and in accordance with the Reasonably Prudent Operator Standard.

• Assignor shall market or shall cause to be marketed Assignor’s Net Share of Minerals (including Assignee Minerals) in good faith and in accordance with the Reasonably Prudent Operator Standard and Section 4.02(d).

• It shall not be a violation of such standard of conduct for Assignor (i) to sell Assignor’s Net Share of Minerals or Assignee Minerals to an Affiliate pursuant to any purchase agreement or contract, or (ii) to delegate some or all of Assignor’s duties as Assignee’s agent and representative to its Affiliates (so long as such Affiliates perform in good faith and in accordance with the Reasonably Prudent Operator Standard), with Assignor remaining liable to Assignee for the performance of such duties.

• For purposes of determining the amount of Assignee Proceeds for any Computation Period, if, when calculating Assignee Minerals for any Computation Period, Assignor is unable to determine the precise volume of Minerals produced, sold and attributable to Assignor’s Net Share of Minerals, then Assignor shall, in good faith and in accordance with the Reasonably Prudent Operator Standard, estimate the volume of such Minerals produced, sold and attributable to Assignor’s Net Share of Minerals.

• Except as otherwise specifically provided in this Conveyance, Assignor shall (a) operate and maintain the Subject Interests and (b) make elections under each applicable lease, operating agreement, unit agreement, contract for development and other similar instrument or agreement (including elections concerning abandonment of any Development Well or release of any Subject Interest) in good faith and in accordance with the Reasonably Prudent Operator Standard.

• Except as otherwise specifically provided in this Conveyance, Assignor shall (a) operate and maintain the Subject Interests and (b) make elections under each applicable lease, operating agreement, unit agreement, contract for development and other similar instrument or agreement (including elections concerning abandonment of any Well or release of any Subject Interest) in good faith and in accordance with the Reasonably Prudent Operator Standard.

• XxxxXxxxx shall drill or caused to be drilled, at XxxxXxxxx’x sole cost and expense, each of the Development Xxxxx in a diligent manner in accordance with the Reasonably Prudent Operator Standard.

• Prior to commencing the drilling of any Development Well, XxxxXxxxx shall perform such title due diligence and such title curative work as would be performed by an oil and gas operator drilling a well and acting in accordance with the Reasonably Prudent Operator Standard.

• Where Assignor or one of its Affiliates does not operate the Subject Interests but Assignor has elected to participate as a non-operator in the drilling of a Development Well, Assignor shall use commercially reasonable efforts to exercise its contractual rights (under the applicable operating agreement or otherwise) to cause the operators of such Subject Interests to act in accordance with the Reasonably Prudent Operator Standard.

• Except as otherwise specifically provided in this Conveyance, Assignor shall (a) operate and maintain the Subject Interests, and (b) make elections under each applicable lease, operating agreement, unit agreement, contract for development and other similar instrument or agreement (including elections concerning abandonment of any Development Well or release of any Subject Interest) in good faith and in accordance with the Reasonably Prudent Operator Standard.

More Definitions of Reasonably Prudent Operator

Reasonably Prudent Operator means an Operator that operates and conducts oil field operations in a proper and workmanlike manner, consistent with rules and regulations of the OCD (including standards provided by the OCD called "Pollution Prevention Best Management Practices"), common industry practices, and guidelines of the American Petroleum Institute.

Reasonably Prudent Operator means an operator of ordinary prudence acting with ordinary diligence under the same or similar circumstances, having due regard for the inter- ests of both Don Davis and Paul Payne.