A
Abandon
to temporarily or permanently cease production from a well or to cease further drilling operations.¹
Accumulator
the storage device for nitrogen pressurized hydraulic fluid, which is used in operating the blowout preventers.¹
Acetic Acid
an organic acid compound sometimes used to acidize oilwells.¹
Acid Fracture
to part or open fractures in limestone formations by using fluid under hydraulic pressure.¹
Ad Valorem Taxes
taxes imposed on property owners based on the value of the property owned. Many counties and other political subdivisions impose these taxes on owners of Mineral Interests.²
Aeration
the introduction of air or gas into a liquid.¹
AESC, Association of Energy Service Companies
a trade association that represents the interests of members of the energy service segment of the oil and gas industry. It offers publications regarding recommended industry practices and training materials.¹
Aggregate
Combination of several minerals or rocks.
Alkylation
The process of rearranging molecules to produce different petroleum products.
Annular Blowout Preventer
a well control device, usually installed above the ram preventers, that forms a seal in the annular space between the pipe and well bore or, if no pipe is present, over the well bore itself.¹
Annular overpressurization
means the accumulation of fluids within an annulus with sufficient pressure to allow migration of annular fluids into underground sources of drinking water.³
Annulus
the space around a pipe in a well bore, sometimes termed the annular space.¹
API, American Petroleum Institute
a trade association and standards organization that represents the interests of the oil and gas industry. It offers publications regarding standards, recommended practices, and other industry related information.¹
Appalachian Basin
a regional Basin that includes the states of Alabama, Georgia, Kentucky, Maryland, New York, Ohio, Pennsylvania, Tennessee, Virginia and West Virginia, and contains the Marcellus Shale and the Utica Shale.²
Aquifer
Any geological formation containing or conducting ground water, especially one that supplies the water for wells, springs, etc.⁴
Artificial Lift
any method used to raise oil to the surface after a well ceases to flow.¹
B
Back Off
to unscrew one threaded piece (such as a section of pipe) from another.¹
Bail
a cylindrical steel bar (similar to the handle or bail of a bucket, only much larger) that supports the swivel and connects it to the hook.¹
Bailer
a long, cylindrical container fitted with a valve at its lower end, used to remove water, sand, mud, drilling cuttings, or oil from a well in cable-tool drilling ¹
Balancing Item
Represents differences between the sum of the components of natural gas supply and the sum of the components of natural gas disposition. These differences may be due to quantities lost or to the effects of data reporting problems. Reporting problems include differences due to the net result of conversions off low data metered at varying temperature and pressure bases and converted to a standard temperature and pressure base; the effect of variations in company accounting and billing practices; differences between billing cycle and calendar period time frames; and imbalances resulting from the merger of data reporting systems that vary in scope, format, definitions, and type of respondents.⁵
Barite
barium sulfate, BaSO4; a mineral frequently used to increase the weight or density of drilling mud. Its relative density is 4.2 (meaning that it is 4.2 times denser than water) ¹
Barrel
A unit of volume equal to 42 U.S. gallons.⁵
Barrel of Oil Equivalent (BOE)
a metric used to convert volumes of different Hydrocarbons (e.g., NGLs, Natural Gas and Crude Oil) into a single, liquid-based, volumetric measure for comparison purposes. A unit of BOE is based off of the approximate (because different grades of Crude Oil have different heating values) energy released from burning one Barrel of Crude Oil, calculated on a Btu basis.²
Base Gas
The quantity of natural gas needed to maintain adequate reservoir pressures and deliverability rates throughout the withdrawal season. Base gas usually is not withdrawn and remains in the reservoir. All natural gas native to a depleted reservoir is included in the base gas volume.⁵
Basin
a geologic term used to describe a depression in the crust of the Earth in which sediments accumulate. Basins that contain Shale or other Hydrocarbons may be referred to as a Play.²
Billion Cubic Feet (Bcf)
a unit of measurement for Natural Gas volumes.²
Biogenesis
The process of decay and decomposition that results in crude oil and natural gas.
Biotic Materials
Any materials that originate from living organisms.
Blowout
a sudden escape of Hydrocarbons from a Well, often caused by uncontrolled high pressure (including as the result of mechanical failure or other error). Blowouts typically occur during the drilling phase of operations.²
Borehole
another term for Wellbore ²
Brine
means all saline geological formation water resulting from, obtained from, or produced in connection with exploration, drilling, well stimulation, production of oil or gas, or plugging of a well.³
Brine / Saltwater
Water saturated with salt. Ancient ocean water held in same rock formations as natural gas and oil.⁴
Bureau of Land Management (BLM)
the US government agency charged with managing onshore public lands and federally owned Mineral Estates. The BLM is a bureau within the US Department of the Interior.²
C
Carbon Cycle
Carbon is exchanged between sources and sinks.
Christmas Tree
A set of valves, spools and fittings connected to the top of a well to direct and control the flow of formation fluids from the well.
Citygate
A point or measuring station at which a distributing gas utility receives gas from a natural gas pipeline company or transmission system.
⁵
Clean Air Act (CAA)
a federal law that regulates the emissions of air pollutants from stationary and mobile sources, including oil and gas equipment and operations.²
Clean Water Act (CWA)
a federal law that establishes standards for surface water quality and for the discharge of pollutants into regulated waters. The CWA also includes regulations governing the dredging and filling of regulated wetlands and stormwater runoff from certain industrial, commercial and construction sites.²
CO2 Injection
a method of Enhanced Oil Recovery that increases the Production of oil from a given Well by injecting the Reservoir in question with carbon dioxide, thereby reducing the Viscosity of the oil contained therein.²
Coal Bearing Township
means a township designated as such by the chief of the division of mineral resources management under section 1561.06 of the Revised Code.³
Complete a Well / Completion / Completion Services / Completed
the process and/or operation(s) necessary to bring a Wellbore into Production after Drilling operations have been completed. Completion may include installation of all production facilities, installation of Casing, Perforating, Hydraulic Fracturing, conducting Well simulation and Production Testing, and commencement of hydrocarbon sales. In the case of an unsuccessful Well, this term may be used to describe the temporary or permanent Plugging and Abandonment of the Well.²
Compressed Natural Gas (CNG)
Compressed Natural Gas (CNG) is natural gas that is compacted to high pressures so large volumes can be stored in small places like a fuel tank. The burning of natural gas releases mostly water vapor. The U.S. Department of Energy recognizes CNG as one of the cleanest burning fuels available.
Compressor
a device or facility located along a Natural Gas Pipeline that raises the pressure of the Natural Gas flowing in the Pipeline, which in turn compresses the Natural Gas, thereby both increasing the effective Capacity of the Pipeline and allowing the Natural Gas to travel longer distances (and at a higher rate) to the intended Delivery Point.²
Condensate
A product of condensation, as a liquid reduced from a gas or vapor.⁴
Conventional Drilling
a drilling method used both onshore and offshore in which the Operator drills a Well vertically below the surface until a Reservoir is reached by the Well, after which time the Hydrocarbons in the Reservoir are brought to the surface through the Wellbore. (Related: unconventional drilling) ²
Correlative rights
means the reasonable opportunity to every person entitled thereto to recover and receive the oil and gas in and under the person's tract or tracts, or the equivalent thereof, without having to drill unnecessary wells or incur other unnecessary expense.³
Cracking
The process of splitting a large, heavy hydrocarbon molecule into smaller and lighter components.
Crude Oil
Petroleum as it comes from the ground, before refining. It is usually black or dark brown, but can also be yellowish, reddish, tan or even greenish. (See also: petroleum) ⁴
Cumulative Production
the aggregate amount of Hydrocarbons produced from a Reservoir as of a specific point in time. Cumulative Production metrics may also be tied to a particular Well, Basin or Field.²
D
Depleted storage field
A sub-surface natural geological reservoir, usually a depleted gas or oil field, used for storing natural gas.⁵
Derrick
The structure that supports the pulleys and the drill string of a drilling rig.
Directional Drilling
The process of drilling wells at multiple angles, not just vertically, to better reach and produce oil and gas reserves. (See also: conventional drilling)
Discovery Well
means the first well, except a stratigraphic well, capable of producing oil or gas in commercial quantities from a pool.³
Downstream
a colloquial term for one of the three major sectors of the oil and gas industry, Downstream refers to the last phase, which generally includes Refining, Processing, storage, marketing of Hydrocarbons and hydrocarbon products, and transportation of hydrocarbon products (e.g., LNG export).²
Drilled and Uncompleted (DUC)
a Well that has been Drilled but not yet Completed for commercial reasons. Because a relatively larger portion of a Well’s EUR is produced at the beginning of the Well’s life, in a low commodity-price environment an oil and gas company may choose to drill a Well, but defer the Well’s Completion (and thus defer Production of a relatively large portion of its EUR) until commodity prices rise.²
Drilling
the process of boring a hole into the surface of the Earth to explore for and extract Hydrocarbons. Drilling may also be conducted for the purposes of extracting water or disposing of certain waste byproducts, in each case, in connection with oil and gas operations.²
Drilling Engineer
a petroleum engineer specializing in overseeing the process of Drilling a Well, including engineering the technical specifications of the Drilling Rig and planning and helping to implement the actual drilling process.²
Drilling Permit
a permit granted by a governmental agency with jurisdiction over the applicable oil and gas operations that gives a party the authority to Drill a Well. Drilling Permits typically specify the following information: the type of Hydrocarbon for which the Well will be drilled (i.e., Crude Oil or Natural Gas); whether the Well will be drilled with a vertical, horizontal or slant trajectory; whether the Well at issue is a new Well or a Recompletion or Reworking of an existing Well; the Well's Surface Location and Terminus location; and any applicable regulations (and/or exceptions) applicable to such Well.²
Drilling Rig
The machine used to drill a wellbore either vertically, directionally or horizontally.
Drilling Unit
means the minimum acreage on which one well may be drilled, but does not apply to a well for
injecting gas into or removing gas from a gas storage reservoir and does not apply to a stratigraphic well.³
Dry Natural Gas
Natural gas which remains after: 1) the liquefiable hydrocarbon portion has been removed from the gas stream (i.e., gas after lease, field, and/or plant separation); and 2) any volumes of nonhydrocarbon gases have been removed where they occur in sufficient quantity to render the gas unmarketable. Note: Dry natural gas is also known as consumer-grade natural gas. The parameters for measurement are cubic feet at 60 degrees Fahrenheit and 14.73 pounds per square inch absolute. Also see Natural gas.⁵
E
Environmental Protection Agency (EPA)
the US federal agency charged with protecting human health and the environment. The EPA
promulgates and administers environmental regulations applicable to air, water, and soil with which
oil and gas companies are required to comply.²
Ethane
a gaseous hydrocarbon chain consisting of two carbon atoms. Ethane is often a component of
unrefined Natural Gas. Ethane is considered to be Dry Gas and is sometimes colloquially referred
to as “C2.” ²
Excavations and Workings
"mine," and "pillar" have the same meanings as in section 1561.01 of the Revised Code.³
Exempt domestic well
means a well that meets all of the following criteria: (1) Is owned by the owner of the surface estate of the tract on which the well is located; (2) Is used primarily to provide gas for the owner's domestic use; (3) Is located more than two hundred feet horizontal distance from any inhabited private dwelling house other than an inhabited private dwelling house located on the tract on which the well is located; (4) Is located more than two hundred feet horizontal distance from any public building that may be
used as a place of resort, assembly, education, entertainment, lodging, trade, manufacture, repair,
storage, traffic, or occupancy by the public.³
Exempt Mississippian well
means a well that meets all of the following criteria: (1) Was drilled and completed before January 1, 1980; (2) Is located in an unglaciated part of the state; (3) Was completed in a reservoir no deeper than the Mississippian Big Injun sandstone in areas underlain by Pennsylvanian or Permian stratigraphy, or the Mississippian Berea sandstone in areas directly underlain by Permian stratigraphy;
(4) Is used primarily to provide oil or gas for domestic use.³
F
Federal Energy Regulatory Commission (FERC)
the US federal agency charged with regulating the interstate transmission of gas, oil, and electricity, as well as hydroelectric and certain Natural Gas projects.²
Field
a Reservoir containing Deposits of Crude Oil and/or Natural Gas from which a producer seeks to exploit the Hydrocarbons.²
First Purchaser
the first person to purchase Hydrocarbon Production after the Hydrocarbons are produced. Under Texas law, a producer has an automatically perfected lien against the Hydrocarbons while the Hydrocarbons are held by the First Purchaser.²
Fish
a colloquial term used to refer to obstructions or debris in a Wellbore, including tools lost Downhole during operations, pieces of damaged Drill Pipe or naturally occurring obstructions such as rock Cuttings. Like its counterpart in the water, Fish can be very slippery and hard to catch.²
Fishing
the process of removing Fish from a Wellbore. Fishing Procedures involve inserting a tool into the Wellbore designed to remove any Fish and attempting to bring the Fish to the surface. If Fishing Procedures are unsuccessful (which does happen from time to time), it may be necessary to Sidetrack the Well.²
Flare
A tall stack equipped with burners used as a safety device at wellheads, refining facilities, gas processing plants, and chemical plants. Flares are used for the combustion and disposal of combustible gases. The gases are piped to a remote, usually elevated, location and burned in an open flame in the open air using a specially designed burner tip, auxiliary fuel, and steam or air. Combustible gases are flared most often due to emergency relief, overpressure, process upsets, startups, shutdowns, and other operational safety reasons. Natural gas that is uneconomical for sale is also flared. Often natural gas is flared as a result of the unavailability of a method for transporting such gas to markets.⁵
Flowline
a Pipeline through which Hydrocarbons and other constituents flow from the Wellhead downstream to other transportation systems, such as a Gathering System or interstate Pipeline or to tanks located on the Lease site.²
Formation
another term for Reservoir. The terms Formation, Reservoir and Zone, on a highly technical level, have slightly different meanings, but as a general matter the terms are often used interchangeably in the oil and gas industry.²
Fossil
Any remains, impression, or trace of a living thing of a former geologic age, as a skeleton, footprint, etc.⁴
Fossil Fuels
Sources of energy that developed within the earth over millions of years.
Frac Fluid
a mixture of water, Proppant and chemical additives used in Hydraulic Fracturing to extend fractures, reduce friction and carry Proppant into the Target Formation. The composition of Frac Fluid will vary by Target Formation and Operator.²
Frac Sand
a type of Proppant made of sand (which may be chemically treated) that is mixed into Frac Fluid and, when shot into a Target Formation, holds or props open fractures or cracks in the Target Formation so that Hydrocarbons may pass through the fractures and into the Wellbore.²
Fracing / Fracking
(See: hydraulic fracturing)
Fractional Distillation
A process by which components in a chemical mixture are separated according to their different boiling points.
Fugitive Emissions
emissions of Natural Gas that escape into the atmosphere during the Upstream and Midstream processes.²
G
Gas
means all natural gas and all other fluid hydrocarbons that are not oil, including condensate.³
Gas Processing Plant
a set of facilities that takes raw or only lightly treated Natural Gas from the Field and filters out impurities in order to separate NGLs and other fluids from the Dry Gas. In some cases a Gas Processing Plant may have Fractionation capabilities as well.²
Gas Storage Reservoir
means a continuous area of a subterranean porous sand or rock stratum or strata into which gas is or may be injected for the purpose of storing it therein and removing it therefrom and includes a gas storage reservoir as defined in section 1571.01 of the Revised Code.³
Gauger
an employee of the Operator or applicable service provider who is responsible for monitoring and maintaining production from a Producing Well, including measuring the quantity of Hydrocarbons produced.²
Geographic Information System (GIS) Data
computerized, spatial geographic data and maps that are utilized in oil and gas exploration, Production and Development. Uses in the oil and gas industry include mapping the spatial relationships of Leases, Wells, operations, Pipelines, and other facilities and otherwise providing the user the ability to analyze, translate and manipulate the applicable geographic data.²
Geophones
A device used in seismic technology to collect and analyze sound waves, and transform the motion into electrical impulses.
Geophysicist
a type of geologist who specializes in the study of the physics of the Earth, and, in the Oil and Gas Field, is responsible for interpreting geophysical data and generating maps or models based upon such data.²
Gone to Water
with respect to an Oil Well or Gas Well, the point in time when the Production of water has increased and the Production of Hydrocarbons has decreased, reducing the Well’s profitability to the point that Production is no longer economically desirable.²
Ground Water
The water beneath the surface of the ground, consisting largely of surface water that has seeped down: the source of water in springs and wells.⁴
Gumbo
A colloquial term used to describe the wet clay frequently encountered in certain types of subsurface Formations.²
Gusher
a colloquial term used to describe a prolific Well that will usually result in a happy Lessor and Lessee.²
H
Hand
a colloquial term for an oilfield worker (e.g., floorhand, toolhand, etc.).²
Hazardous Substances
a class of substances defined by federal law, the EPA and OSHA, and/or state law as being hazardous to the environment. Substances defined as hazardous must be used and handled according to specific regulatory guidelines. The term Hazardous Substances is often used in oil and gas industry agreements and may be ascribed a meaning in the applicable agreement that is different from how the term is defined under Environmental Laws. In both contexts (i.e., the EPA regulations and the agreements), Hydrocarbons themselves are not always considered Hazardous Substances.²
Heater Treater
a piece of equipment located downstream of the Wellhead and often connected to a Tank Battery that processes produced oil by using heat to separate out water, Natural Gas and other substances from the oil.²
Heavy Crude Oil
Crude Oil that has relatively less “light” components, such as gasoline, and relatively more “heavy” components, such as asphalt, than does Light Crude Oil. Heavy Crude Oil is generally harder to produce (as it is more viscous) and is less valuable than Light Crude Oil. Heavy Crude Oil is typically understood to be Crude Oil with an API Gravity that is less than 20°.²
Horizontal Drilling
A type of directional drilling The horizontal well is drilled across an oil and gas formation, increasing production significantly compared to its vertical counterpart. (See also: unconventional drilling)
Horizontal Spacing
spacing describes the number of acres assigned to a Well by a state regulatory agency. Horizontal Spacing applies to Horizontal Wells and dictates how far the Wellbore of the Horizontal Well must be set back from lease lines.²
Horizontal Well
means a well that is drilled for the production of oil or gas in which the wellbore reaches a horizontal or near horizontal position in the Point Pleasant, Utica, or Marcellus formation and the well is stimulated. "Horizontal well" does not include a stratigraphic well.³
Hot Oiler
A machine, usually attached to or carried on a truck, that creates heat which is used to cause oil, wax or other clogging constituents in a Wellbore to become less viscous and therefore increase the flow out of the Wellbore.²
Hydraulic Fracturing / Well Stimulation
A process routinely performed on oil and gas wells that creates small fractures (or fissures) in the rock to increase permeability.
Hydrocarbon gas liquids (HGL)
A group of hydrocarbons including ethane, propane, normal butane, isobutane, and natural gasoline, and their associated olefins, including ethylene, propylene, butylene, and isobutylene. As marketed products, HGL represents all natural gas liquids (NGL) and olefins. EIA reports production of HGL from refineries (liquefied refinery gas, or LRG) and natural gas plants (natural gas plant liquids, or NGPL). Excludes liquefied natural gas (LNG).⁵
Hydrocarbons
Organic compounds composed of hydrogen and carbon.
I
Igneous Rock
Rocks formed by the cooling and solidifying of molten materials. Igneous rocks can form beneath the Earth's surface, or at its surface, as lava. There are three main rock types: igneous, metamorphic and sedimentary.⁴ ⁶
Impermeable
in the context of oil and gas Drilling, subsurface Formations that cannot be drilled through by ordinary means of Drilling. In the context of geology, Formations through which Hydrocarbons cannot flow.²
Independent Producer / Independent Oil Company
an oil and gas company that focuses exclusively on the Upstream segment of the oil and gas business, as opposed to an Integrated Oil Company. In the oil and gas industry, certain tax deductions, such as Percentage Depletion, are available only to Independent Producers. The IRS defines an Independent Producer as a taxpayer with less than 75,000 Bbl/d of refining Capacity and less than US$5 million per year in retail sales.²
Industry Player
in the context of oil and gas transactions, a term used to refer to an oil and gas company or other industry-specific entity that is a party to a transaction, in contrast to parties to the transaction that are financial investors or lenders. For example, in a joint venture transaction, often at least one party to the joint venture will be an Industry Player with the experience and know-how to operate the joint venture assets, while the other parties will contribute financially but will participate as Non-Operators.²
Injection Gas
Natural Gas that is injected through an Injection Well into an oil Reservoir to increase the pressure of the Reservoir and thereby increase the recovery of oil.²
Injection Well
A well through which fluids are injected into an underground stratum to increase reservoir pressure and to displace oil. Also called input well. Also known as underground injection control (UIC).¹
Integrated Oil Company
an oil and gas company that has businesses across the various sectors of the oil and gas industry (e.g., Upstream, Midstream and Downstream).²
Intermediate Crude Oil
Crude Oil with a sulfur content between 0.5% and 2.5%.²
Isopach Map
Displays the stratigraphic thickness of a rock unit.
J
Jack-Ups / Jack-Up Rig
an offshore rig that, once on location, is stabilized by legs that extend to the seafloor and that are adjustable in height. Jack-Up Rigs are therefore primarily designed for relatively shallow waters.²
K
Kelly
part of a Drilling Rig that is a square or hexagonal steel tube or pipe that transfers rotary motion from the swivel to the Rotary Table and the Drill String.²
Kerogen
Naturally occurring solid organic matter in sedimentary rock that is insoluble in organic solvents. Kerogen originates from algae, plankton, and plant material from aquatic and terrestrial environments. Under the right conditions of pressure, temperature, and time, kerogen can form oil and natural gas.⁵
Kerosene
A light petroleum distillate that is used in space heaters, cook stoves, and water heaters and is suitable for use as a light source when burned in wick-fed lamps. Kerosene has a maximum distillation temperature of 400 degrees Fahrenheit at the 10-percent recovery point, a final boiling point of 572 degrees Fahrenheit, and a minimum flash point of 100 degrees Fahrenheit. Included are No. 1-K and No. 2-K, the two grades recognized by ASTM Specification D 3699 as well as all other grades of kerosene called range or stove oil, which have properties similar to those of No. 1 fuel oil. Also see Kerosene-type jet fuel.⁵
Kill a Well
the intentional or unintentional action of causing a Well to temporarily or permanently cease Production of Hydrocarbons. A Well is killed by the uphole presence of fluids sufficiently heavy to prevent the Hydrocarbons from continuing uphole, including through injecting high density Drilling Mud into the Wellbore.²
L
Landman
a professional in the oil and gas industry who is responsible for securing and managing Mineral Rights (e.g., through signing up an Oil and Gas Lease and Running Title), facilitating the permitting of Wells, and managing and maintaining oil and gas interests, including relations with Landowners and Lessors.²
Landowner
generally this term is used to refer to someone who owns either the Surface Estate and/or the Mineral Estate, which (if the Mineral Estate owner) is often times the Lessor under an Oil and Gas Lease.²
Lay Down Pipe
in connection with the Drilling of a Well, this term refers to the process of pulling Drill Pipe from the Well and placing the pipe back on the pipe racks or on the ground. In connection with Pipelines, Lay Down Pipe is also a colloquial term used to refer to the installation of Pipelines.²
Light Crude Oil
Crude Oil that has relatively more “light” components, such as gasoline, and relatively less “heavy” components such as asphalt, than does Heavy Crude Oil. Light Crude Oil has a lower density and lower Viscosity than Heavy Crude Oil.²
Limestone
Formed in shallow marine waters primarily from the remains of marine skeletons.
Liquefied natural gas (LNG)
Natural gas (primarily methane) that has been liquefied by reducing its temperature to -260 degrees Fahrenheit at atmospheric pressure.
⁵
Liquefied Petroleum Gas (LPG)
flammable hydrocarbon gases such as Butane and Propane that are in a liquid state. LPGs may be derived from Natural Gas Processing or from Crude Oil Refining.²
Liquid Hydrocarbons
a broad term that captures Hydrocarbons in liquid form, such as Crude Oil, Condensate, NGLs, LNG and LPG.²
Liquid-Rich Shales
Shale rock Formations that bear relatively more Crude Oil and Condensate than Dry Gas. Within a given Basin, certain areas may be more liquid-prone than others.²
Live Oil
Crude Oil infused with a very high concentration of Natural Gas, causing the Crude Oil to be volatile and more combustible ²
Losing the Hole
a colloquial term used to refer to the loss of usability of a Wellbore, usually due to a collapse caused during the Drilling of a Well or from mechanical difficulties.²
Lubricant
a liquid or mixture of liquids and solid constituents added to Drilling Fluid in order to reduce friction in the Wellbore during Drilling operations.²
M
Making Hole
colloquial term for the act of Drilling a Well.²
Marcellus Shale
a popular name used for a Shale Formation that is generally located under parts of Ohio, West Virginia, Pennsylvania and New York.²
Material and substantial violation
means any of the following: (1) Failure to obtain a permit to drill, reopen, convert, plugback, or plug a well under this chapter; (2) Failure to obtain, maintain, update, or submit proof of insurance coverage that is required under this chapter; (3) Failure to obtain, maintain, update, or submit proof of a surety bond that is required under this chapter; (4) Failure to restore a disturbed land surface as required by section 1509.072 of the Revised Code; (5) Failure to reimburse the oil and gas well fund pursuant to a final order issued under section 1509.071 of the Revised Code; (6) Failure to comply with a final nonappealable order of the chief issued under section 1509.04 of the Revised Code; (7) Failure to submit a report, test result, fee, or document that is required in this chapter or rules adopted under it.³
Maturation
the process whereby organic material in a Source Rock becomes a Hydrocarbon; the type and form of the Hydrocarbon depending, generally, on the duration, heat and pressure exerted upon the Source Rock.²
Measured Depth
the measurement of the Wellbore’s total length, often measured by using the Drill String in the Wellbore.²
Measuring Tank
a tank equipped to measure volumes of Liquid Hydrocarbons as they pass through the tank, often in connection with Well testing.²
Metamorphic Rock
Rock that was once one form of rock but has changed to another under the influence of heat, pressure, or some other agent without passing through a liquid phase. There are three main rock types: igneous, metamorphic and sedimentary.⁴ ⁶
Methane
a gaseous hydrocarbon chain consisting of one carbon atom. Methane is often the primary component of unrefined Natural Gas and is considered to be Dry Gas.²
Midstream
a colloquial term for one of the three major sectors of the oil and gas industry, Midstream refers to the second phase, which involves the movement and storage of Hydrocarbons and is comprised of Gathering, shipping and transporting, Processing and storage of Hydrocarbons.²
Migration
the naturally occurring subsurface movement of Hydrocarbons, including movement from a Source Rock to a Reservoir and movement within a Reservoir. The Porosity and Permeability of the Source Rock or Reservoir Rock affects Migration.²
Mineral
Any of a class of substances occurring in nature, usually comprising inorganic substances, as quartz or feldspar, of definite chemical composition and usually of definite crystal structure, but sometimes also including rocks formed by these substances as well as certain natural products of organic origin, as asphalt or coal.⁴
Mineral Interest / Mineral Rights
a legal interest in the ownership of the minerals underlying a property, which grants the holder the right to enter and occupy the surface as is reasonably necessary to explore, drill, mine, remove and market such minerals and the right to assign or convey such rights to third parties. The Mineral Interest is cost bearing, meaning it bears the costs associated with exploring, Drilling, mining, removing and marketing.²
Minimum Volume Commitment (MVC)
in connection with Midstream services, an MVC is a contractual commitment from a customer to provide a minimum amount of volumes of Hydrocarbons to the service provider over a set time period. Often, a Shortfall Payment will be owed if the volumes provided to the Midstream service provider are below the applicable MVC.²
Mining
Extraction of industrial minerals and hydrocarbons.
Moonpool
an opening in the center of a Drill Ship or Semi-Submersible Drilling Rig, which allows for passage of equipment and/or divers into and from the water.²
Mousehole
a hole in the floor of a Drilling Rig in which a joint of pipe can be held in anticipation of connecting that pipe to the Drill String.²
Multi-Stage Hydraulic Fracturing
a method of Hydraulic Fracturing whereby portions of the Lateral are isolated and fractured at various times; the entire Lateral is fractured in stages.²
Multilateral Well
a Horizontal Well that has multiple Laterals drilled from the same vertical Wellbore, whether in the same Target Formation or in different Zones.²
N
National Environmental Policy Act (NEPA)
a federal environmental law that governs the approval of major projects that receive federal funding or require federal permits. The law contains no substantive environmental regulations, but rather outlines a process by which federal agencies may approve major projects, including the requirement that the relevant federal agency (often with the project sponsor’s support) prepare various impact reports on how the project will affect the environment.²
National Oil Company (NOC)
an oil company that is owned, completely or in the majority, by a national government, as opposed to an oil company that is independently owned. Examples of NOCs include Pemex (Mexico), Eni (Italy) and Saudi Aramco (Saudi Arabia).²
Native Gas
in the context of Underground Gas Storage, Native Gas is the Natural Gas that was already present in the applicable Formation being utilized for storage, as opposed to the Natural Gas that is injected into the storage Formation.²
Natural Gas
A combustible mixture of gaseous hydrocarbons that accumulates in porous sedimentary rocks, especially those yielding petroleum, consisting usually of over 80 percent methane together with minor amounts of ethane, propane, butane, nitrogen, and, sometimes, helium: used as a fuel and to make carbon black, acetylene, and synthesis gas.⁴
Natural Gas Liquids (NGL)
A group of hydrocarbons including ethane, propane, normal butane, isobutane, and natural gasoline. Generally include natural gas plant liquids and all liquefied refinery gases except olefins.⁵
Natural Gas Policy Act of 1978 (NGPA)
Signed into law on November 9, 1978, the NGPA is a framework for the regulation of most facets of the natural gas industry.⁵
Natural gas sweetening
The process of removing hydrogen sulfide (H2S), carbon dioxide (CO2), and mercaptans from natural gas to make it suitable for transport and sale. Sour natural gas must be sweetened because H2S is highly toxic, and H2S and CO2 corrode natural gas pipelines.⁵
Natural Gasoline
A commodity product commonly traded in NGL markets that comprises liquid hydrocarbons (mostly pentanes and hexanes) and generally remains liquid at ambient temperatures and atmospheric pressure. Natural gasoline is equivalent to pentanes plus.⁵
Naturally Flowing Well
a Well in which the natural Reservoir Pressure is sufficient to lift Hydrocarbons to the surface without the need for any external pumping enhancement (e.g., a Pump Jack or Artificial Lift drive).²
Naturally Occurring Radioactive Material (NORM)
radioactive material that is naturally present in various mediums. NORM is often exposed (or potentially exposed) in connection with oil and gas E&P activities.²
Nipple Down
the process of disassembling a Drilling Rig and its related equipment, typically to prepare the Drilling Rig to be moved from one drilling location to another.²
Nipple Up
the process of assembling a Drilling Rig and its related equipment for use at a Drilling location.²
Nodding Donkey
colloquial term for Pump Jack.²
Non-Commercial
a Well, Formation or Play that is not capable of, or not currently capable of Production in Paying Quantities (whether due to insufficient reserve quantities, high Development Costs or technological hurdles).²
Non-Conforming Hydrocarbons
in connection with Midstream services agreements or Marketing Agreements, Non-Conforming Hydrocarbons are those Hydrocarbons that do not meet the applicable Quality specifications for such Hydrocarbons contained in such agreement.²
Nonhydrocarbon gases
Typical nonhydrocarbon gases that may be present in reservoir natural gas, such as carbondioxide, helium, hydrogen sulfide, and nitrogen.⁵
Nonrenewable Energy
Energy resources that are exhaustible relative to the human life span, such as gas, coal, or petroleum. (Related: renewable energy) ⁶
O
Occupational Safety & Health Administration (OSHA)
the US government agency charged with ensuring that workers are provided safe and healthful working conditions. OSHA promulgates and administers health and safety regulations with which oil and gas companies are required to comply.²
Offshore reserves and production
Unless otherwise dedicated, reserves and production that are in either state or Federal domains, located seaward of the coastline.⁵
Oil
means crude petroleum oil and all other hydrocarbons, regardless of gravity, that are produced in liquid form by ordinary production methods, but does not include hydrocarbons that were originally in a gaseous phase in the reservoir.³
Oil and Gas Separator
a mechanical device, typically located at the Wellhead of a Producing Well, which separates Crude Oil from Natural Gas after a combined production stream reaches the surface.²
Oil Field
a Reservoir containing Deposits of Crude Oil and/or Natural Gas from which a producer seeks to exploit the Hydrocarbons.²
Oil Pollution Act (OPA)
a federal law that provides a civil liability regime for oil spills and imposes obligations on the owners and Operators of oil storage facilities and vessels that seek to prevent oil spills and mitigate any damage to regulated waters.²
Oil Prone
a geological term used to describe a Formation or Source Rock that tends to produce relatively more oil, as opposed to Natural Gas, than do comparable Formations or Source Rocks.²
Oil Sands
a Bitumen bearing sand that must be mined and heated to produce usable oil, typically Heavy Crude Oil. The processes used to develop Oil Sand Deposits are different than for Conventional or Unconventional Drilling, and, as a result, Oil Sands Deposits are typically more expensive to produce.²
Oil-in-Place (OIP)
a petroleum geology term referring to the estimate of the total amount of oil contained in an applicable Reservoir.²
On the Pump
a phrase used in the oil and gas industry to describe when a Well is not, or is no longer, a Flowing Well, and a Pump Jack is being used to drive the Hydrocarbons to the surface.²
Open Formation
a Formation or Reservoir in which Hydrocarbons are able to migrate due to good Porosity and Permeability.²
Orphaned Well
means a well that has not been properly plugged or its land surface restored in accordance with this chapter and the rules adopted under it to which either of the following apply:(1) The owner of the well is unknown, deceased, or cannot be located and the well is abandoned. (2) The owner of the well has abandoned the well and there is no money available to plug the well in accordance with this chapter and the rules adopted under it.³
Over-Delivered
a term used to describe a Pipeline Imbalance at a certain point on a Pipeline, typically an interconnection point, due to the fact that the amount of Hydrocarbons a party has delivered to such point at a particular point in time exceeds the amount of Hydrocarbons Nominated by or allocated to such party at such interconnection.²
Over-Produced
a term used to describe a Well Imbalance due to the fact that the amount of Hydrocarbons produced from an applicable Well and allocated to a party exceeds the share of Production from such Well to which the party is entitled.²
Owner
unless referring to a mine, means the person who has the right to drill on a tract or drilling unit, to drill into and produce from a pool, and to appropriate the oil or gas produced therefrom either for the person or for others, except that a person ceases to be an owner with respect to a well when the well has been plugged in accordance with applicable rules adopted and orders issued under this chapter. "Owner" does not include a person who obtains a lease of the mineral rights for oil and gas on a parcel of land if the person does not attempt to produce or produce oil or gas from a well or obtain a permit under this chapter for a well or if the entire interest of a well is transferred to the person in accordance with division (B) of section 1509.31 of the Revised Code.³
P
Permeability
The measurement of a rock’s ability for fluids (gas or liquid) to flow through it.
Person
includes any political subdivision, department, agency, or instrumentality of this state; the United States and any department, agency, or instrumentality thereof; any legal entity defined as a person under section 1.59 of the Revised Code; and any other form of business organization or entity recognized by the laws of this state.³
Petroleum
Petroleum, also called crude oil, is a fossil fuel. Like coal and natural gas, petroleum was formed from the remains of ancient marine organisms, such as plants, algae, and bacteria. Over millions of years of intense heat and pressure, these organic remains (fossils) transformed into carbon-rich substances we rely on as raw materials for fuel and a wide variety of products. (See also: crude oil) ⁶
Petroleum Jelly
A semi-solid oily product produced from de-waxing lubricating oil basestocks.⁵
Pig
Devices with blades or brushes inserted into a pipeline to clean out rust, wax, scale and debris. The use of a pig in a pipeline is referred to as pigging.
Pipeline (natural gas)
A continuous pipe conduit, complete with such equipment as valves, compressor stations, communications systems, and meters for transporting natural and/or supplemental gas from one point to another, usually from a point in or beyond the producing field or processing plant to another pipeline or to points of utilization. Also refers to a company operating such facilities.⁵
Pipeline (petroleum)
Crude oil and product pipelines used to transport crude oil and petroleum products, respectively (including interstate, intrastate, and intracompany pipelines), within the 50 states and the District of Columbia.⁵
Pool
means an underground reservoir containing a common accumulation of oil or gas, or both, but does not include a gas storage reservoir. Each zone of a geological structure that is completely separated from any other zone in the same structure may contain a separate pool.
³
Poor Boy
a safety device for controlling unexpected pressure differentials between the Wellbore and the Producing Formation by separating free gas from Drilling Mud after the Mud is brought to the surface.²
Porosity
The percentage of pore volume (or void space) within a rock that can contain fluids (gas or liquid).
Prepared Clay
means a clay that is plastic and is thoroughly saturated with fresh water to a weight and consistency great enough to settle through saltwater in the well in which it is to be used, except as otherwise approved by the chief of the division of oil and gas resources management.³
Producing Formation
the Formation from which Hydrocarbons are being produced. Producing Formation can also refer to only those Formations that are producing Hydrocarbons in Paying Quantities.²
Production Operation
means all operations and activities and all related equipment, facilities, and other structures that may be used in or associated with the exploration and production of oil, gas, or other mineral resources that are regulated under this chapter, including operations and activities associated with site preparation, site construction, access road construction, well drilling, well completion, well stimulation, well site activities, reclamation, and plugging. "Production operation" also includes all of the following: (1) The piping, equipment, and facilities used for the production and preparation of hydrocarbon gas or liquids for transportation or delivery; (2) The processes of extraction and recovery, lifting, stabilization, treatment, separation, production processing, storage, waste disposal, and measurement of hydrocarbon gas and liquids, including related equipment and facilities; (3) The processes and related equipment and facilities associated with production compression, gas lift, gas injection, fuel gas supply, well drilling, well stimulation, and well completion activities, including dikes, pits, and earthen and other impoundments used for the temporary storage of fluids and waste substances associated with well drilling, well stimulation, and well completion activities; (4) Equipment and facilities at a wellpad or other location that are used for the transportation, handling, recycling, temporary storage, management, processing, or treatment of any equipment, material, and by-products or other substances from an operation at a wellpad that may be used or reused at the same or another operation at a wellpad or that will be disposed of in accordance with applicable laws and rules adopted under them.³
Proved energy reserves
Estimated quantities of energy sources that analysis of geologic and engineering data demonstrates with reasonable certainty are recoverable under existing economic and operating conditions. The location, quantity, and grade of the energy source are usually considered to be well established in such reserves. Note: This term is equivalent to "Measured Reserves" as defined in the resource/reserve classification contained in the U.S. Geological Survey Circular 831, 1980. Measured and indicated reserves, when combined, constitute demonstrated reserves.⁵
Pumpjack
A mechanical component that may lift liquid out of the well. (aka: horsehead, nodding donkey, rocking horse, dinosaur or grasshopper pump)
Q
R
Rathole
a colloquial term for a hole in the floor of a Drilling Rig used to store certain equipment.²
Recycled Gas
gas produced from a Well that is then injected back into the Reservoir after the gas is produced in order to maintain Reservoir Pressure. Recycled Gas can also refer to Natural Gas produced from landfills.²
Refinery / Processing Facility
An industrial plant where crude oil and natural gas are refined and processed into more useful products.
Reforming
The process of combining smaller hydrocarbons to create larger ones.
Renewable Energy
Energy obtained from sources that are virtually inexhaustible and replenish naturally over small time scales relative to the human life span. (Related: nonrenewable energy) ⁶
Reservoir
a subsurface accumulation of Hydrocarbons.²
Reservoir Rocks
Porous or fractured rock formations Hydrocarbons migrate to be stored in these types of rocks.
Residual Oil
incremental amounts of oil that are produced from a Gas Well.²
Rig Down
the process of dismantling and shutting down a Drilling Rig down after a Well has been drilled.²
Rig Up
the process of moving a Drilling Rig on location and commencing the Drilling of a Well.²
Road Oil
Any heavy petroleum oil, including residual asphaltic oil used as a dust palliative and surface treatment on roads and highways. It is generally produced in six grades, from 0, the most liquid, to 5, the most viscous.⁵
Rock
Mineral matter of variable composition, consolidated or unconsolidated, assembled in masses or considerable quantities in nature, as by the action of heat or water.⁴
Rock Sediment
means the combined cutting and residue from drilling sedimentary rocks and formation.³
Roughneck
a colloquial term for a member of the drilling crew that assists with daily operations and maintenance on the Drilling Rig ²
Royalty Interest
means the fee holder's share in the production from a well, except a stratigraphic well.³
S
Safe Drinking Water Act
means the "Safe Drinking Water Act," 88 Stat. 1661 (1974), 42 U.S.C.A. 300(f), as amended by the "Safe Drinking Water Amendments of 1977," 91 Stat. 1393, 42 U.S.C.A. 300(f), the "Safe Drinking Water Act Amendments of 1986," 100 Stat. 642, 42 U.S.C.A. 300(f), and the "Safe Drinking Water Act Amendments of 1996," 110 Stat. 1613, 42 U.S.C.A. 300(f), and regulations adopted under those acts.³
Salt Dome
a geological feature commonly associated with trapped Hydrocarbons and therefore considered to be an indicator of the presence of Hydrocarbons within such feature.²
Sandstone
Clastic sediment composed of sand-sized mineral or rock grains.
Sedimentary Basin
Low area where sediments accumulate.
Sedimentary Rock
Rock that has formed through the deposition and solidification of sediment, especially sediment transported by water (rivers, lakes, and oceans), ice (glaciers), and wind. Sedimentary rocks are often deposited in layers, and frequently contain fossils. There are three main rock types: igneous, metamorphic and sedimentary.⁴ ⁶
Seismic
Pertaining to, of the nature of, or caused by an earthquake or vibration of the earth, whether due to natural or artificial causes.⁴
Seismic Data License
an agreement whereby an owner of certain Seismic Data (i.e., the licensor) grants permission to a third party (i.e., the licensee) to use Seismic Data for the licensee’s benefit. Typically, a Seismic Data License is very licensor-friendly and the licensee cannot assign the Seismic Data Licensee without paying a fee to the licensor (which may be up to 100% of the cost of obtaining the original Seismic Data License).²
Seismic Technology
Used by scientists to interpret the composition, fluid content, extent and geometry of subsurface rocks.
Seismic Waves
Waves of energy that move through the Earth’s layers.
Seismicity
The frequency, intensity, and distribution of earthquakes in a given area.⁴
Seismograph
Instrument that measures the details of seismic activity.
Separator
A vessel designed to separate production fluids into their constituent components of crude oil, natural gas and water (also called brine or saltwater).
Severer
has the same meaning as in section 5749.01 of the Revised Code.³
Shale
Fine grained, clastic sediment composed of mud and minerals.
Shale Gas
Natural gas produced from wells that are open to shale formations. Shale is a fine-grained, sedimentary rock composed of mud from flakes of clay minerals and tiny fragments (silt-sized particles) of other materials. The shale acts as both the source and the reservoir for the natural gas. See natural gas.⁵
Shale Shaker
an oilfield tool used to remove solid Deposits from Drilling Mud.²
Shrinkage
a negligible amount of Production that is lost during the transportation of Hydrocarbons from a Receipt Point to a Delivery Point. Shrinkage can also refer to the loss of Btu content in a gas stream due to the Processing of such gas to produce NGLs.²
Shut-In Well
a Well capable of Production that has been shut-in due to lack of market, take-away Capacity or other adverse condition.²
Sidetracking / Sidetrack Operations
a Drilling operation that uses a portion of an existing Wellbore to create a new Wellbore for the same Well. Sidetracking is typically utilized to bypass a portion of the existing Wellbore that is unable to be Re-entered because of Junk in the original Wellbore or impenetrable subsurface obstacles in the original Wellbore’s path that cannot be drilled through.²
Society of Petroleum Engineers (SPE)
a professional organization founded in 1957 focused on the Upstream sector of the oil and gas industry. The purpose of the SPE is to provide a platform for disseminating technical expertise about the exploration, Development and production of oil and gas and provide opportunities for industry professionals to increase their technical and professional competence.²
Sour Crude Oil
Crude Oil with sulfur content over 0.5%. Sour Crude Oil requires more processing than Sweet Crude Oil due to Sour Crude Oil’s higher sulfur content. As a result, Sour Crude Oil is typically more costly and less valuable than Sweet Crude Oil.²
Sour Gas
Gas with a high hydrogen sulfide and carbon dioxide content. Sour Gas is less valuable than Sweet Gas because Sour Gas requires purification to remove such contaminants. Due to its corrosive nature, Sour Gas requires specialized valves and Pipelines for transportation purposes.²
Source Rocks
Organic-rich rocks from which hydrocarbons have been generated or are capable of being generated.
Spud / Spud-In
a colloquial term for the initial Drilling of a new Well, specifically referencing when the Drill Bit breaks the surface.²
Stimulation
a general reference to various operations or techniques employed to “stimulate” or increase Production of a Well by improving the flow of Hydrocarbons from the applicable Reservoir, such as through the use of Hydraulic Fracturing to extend the perforation tunnels and fractures or Acidizing to remove any blockage.²
Strategic Petroleum Reserve (SPR)
Petroleum stocks maintained by the Federal Government for use during periods of major supply interruption.⁵
Stratigraphic well
means a borehole that is drilled within the state on a tract solely to conduct research or testing of the subsurface geology, including porosity and permeability. "Stratigraphic well" does not include geotechnical or soil borings or a borehole drilled for seismic shot or mining of industrial minerals or coal.³
Stripper Well / Strippers
a colloquial term used to reference a marginally-producing Well or an old Well beyond its economically useful life. Despite their low production rates, Strippers collectively generate a significant percentage of oil and gas Production in the US.²
Substitute Well
a Well drilled to replace a previously drilled Well that was unsuccessful for one reason or another. This concept is often included in Farmout Agreements, so that if the Farmee encounters an impenetrable Formation or other conditions that render further Drilling in the original Well impractical, the Farmee can still earn Acreage under the Farmout with a Substitute Well.²
Surface Use Agreement
an agreement between a surface owner and a counterparty that desires to use such surface for a certain purpose (e.g., oil and gas operations) that delineates the rights and obligations of each party with respect to the use of the surface.²
Sweet Crude Oil
Crude Oil with a sulfur content of less than 0.5%. Sweet Crude Oil is more valuable than Sour Crude Oil because it requires less processing.²
Sweet Gas
Natural Gas with a low sulfur content that requires little purification.²
Sweet Spot
A colloquial term used to designate the most productive portion of an oil and gas Reservoir.²
Synthetic
Something made by a synthetic, or chemical, process. Human-made.⁴
Synthetic Natural Gas (SNG)
(Also referred to as substitute natural gas) A manufactured product, chemically similar in most respects to natural gas, resulting from the conversion or reforming of hydrocarbons that may easily be substituted for or interchanged with pipeline-quality natural gas.⁵
T
Temporarily inactive well
means a well that has been granted temporary inactive status under section 1509.062 of the Revised Code.³
Tight Oil
Oil produced from petroleum-bearing formations with low permeability such as the Eagle Ford, the Bakken, and other formations that must be hydraulically fractured to produce oil at commercial rates. Shale oil is a subset of tight oil.⁵
Tract
means a single, individual parcel of land or a portion of a single, individual parcel of land.³
U
Unassociated Gas
Natural Gas that is produced from a Well other than an Oil Well (i.e., a Gas Well) or that is found in a non-oil bearing Formation.²
Unconventional Drilling
drilling in Unconventional Resource Plays, such as Shale. Unconventional Drilling typically includes Horizontal Drilling and will often require Hydraulic Fracturing or other Stimulation techniques in order to effectuate Production from the applicable Well, as the Reserves in such Unconventional Resource Plays typically cannot be economically developed with Conventional Drilling methods alone. (Related: conventional drilling) ²
Under-Produced
a term used to describe a Well Imbalance due to the fact that the amount of Hydrocarbons produced from an applicable Well and allocated to a party falls short of the share of Production from the Well to which the party is entitled.²
Underground Gas Storage
typically, a depleted cavern or subsurface Formation where Natural Gas that has previously been extracted from another Formation is reinjected and stored until a market is secured.²
Underground Injection Control (UIC)
The UIC program is a federal EPA regulatory program defined by the Safe Drinking Water Act of 1974 that contains minimum federal requirements for injection practices with the purpose to protect public health by preventing contamination of USDWs. (See: Injection Well)
Unfinished Oil
All oils requiring further processing, except those requiring only mechanical blending. Unfinished oils are produced by partial refining of crude oil and include naphthas and lighter oils, kerosene and light gas oils, heavy gas oils, and residuum.⁵
United States Geological Survey (USGS)
a government agency tasked with providing impartial scientific information for increased understanding of the Earth’s energy, mineral and biological resources. The USGS is a public information source, focusing its oil and gas research efforts on the location, Quality and quantity of Hydrocarbons so it can evaluate Reserve growth, Unconventional Resources and energy economics in the United States.²
Upstream
a colloquial term for one of the three major sectors of the oil and gas industry, Upstream refers to the first phase, which involves finding and Drilling for Hydrocarbons to extract Hydrocarbons from the earth, also known as E&P operations.²
Urbanized area
means an area where a well or production facilities of a well are located within a municipal corporation or within a township that has an unincorporated population of more than five thousand in the most recent federal decennial census prior to the issuance of the permit for the well or production facilities.³
Utica Shale
a Shale Formation located in the Mid-Atlantic / Northeastern regions of the US, typically thought to be centered in West Virginia, Ohio, Pennsylvania and New York. The Utica Shale underlies the Marcellus Shale in many locations.²
V
Valve
a device used to control the rate of flow in a line to open or shut off a line completely, or to serve as an automatic or semiautomatic safety device. Those used extensively include the check valve, gate valve, globe valve, needle valve, plug valve, and pressure relief valve.¹
Vee-Door
an opening in the side of a Derrick that allows long Drill Pipes and large tools to pass through easily.²
Venting
the controlled Release of gases into the atmosphere during oil and gas operations.²
Vertical Drilling
The process of drilling a straight hole to the depth where the crude oil and natural gas formation is located. (See also: conventional drilling)
Vertical Spacing
Vertical Spacing applies to Vertical Wells and dictates a Wellbore location (minimum distance from other Lease lines) as well as the number of Wells allowed in a geographic area. Although Vertical Spacing varies greatly from state to state and Field to Field, typically it is 40 acres for an Oil Well and 640 acres for a Gas Well.²
Vertical Well
a traditional Oil Well or Gas Well, drilled vertically from the surface directly to the Target Formation.²
Viscosity
A measure of a fluid’s “thickness” or resistance to flow.
Volatile Oil
oil that contains a higher gas content and typically has a higher Flow Rate than heavier Crude Oil types.²
W
Waste
includes all of the following: (1) Physical waste, as that term generally is understood in the oil and gas industry; (2) Inefficient, excessive, or improper use, or the unnecessary dissipation, of reservoir energy; (3) Inefficient storing of oil or gas; (4) Locating, drilling, equipping, operating, or producing an oil or gas well in a manner that reduces or tends to reduce the quantity of oil or gas ultimately recoverable under prudent and proper operations from the pool into which it is drilled or that causes or tends to cause unnecessary or excessive surface loss or destruction of oil or gas; (5) Other underground or surface waste in the production or storage of oil, gas, or condensate, however caused.³
Water Rights Agreement
an agreement entered into between an owner of water rights and a counterparty under which the counterparty obtains the right to use a certain amount of water for its operations, subject to certain terms and conditions. Water Rights Agreements are often used in the context of Unconventional Resource Plays and in Hydraulic Fracturing operations.²
Waters of the state
means all streams, lakes, ponds, marshes, watercourses, waterways, springs, irrigation systems, drainage systems, and other bodies of water, surface or underground, natural or artificial, that are situated wholly or partially within this state or within its jurisdiction, except those private waters that do not combine or effect a junction with natural surface or underground waters.³
Wax
A solid or semi-solid material consisting of a mixture of hydrocarbons obtained or derived from petroleum fractions, or through a Fischer-Tropsch type process, in which the straight- chained paraffin series predominates. This includes all marketable wax, whether crude or refined, with a congealing point (ASTM D 938) between 100 and 200 degrees Fahrenheit and a maximum oil content (ASTM D 3235) of 50 weight percent. ⁵
Well
means any borehole, whether drilled or bored, within the state for production, extraction, or injection of any gas or liquid mineral, excluding potable water to be used as such, but including natural or artificial brines and oil field waters. "Well" includes a stratigraphic well.³
Well Completion
1. the activities and methods of preparing a well for the production of oil and gas or for other purposes, such as injection; the method by which one or more flow paths for hydrocarbons are established between the reservoir and the surface. 2. the system of tubulars, packers, and other tools installed beneath the wellhead in the production casing; that is, the tool assembly that provides the hydrocarbon flow path or paths.¹
Well Logs
A detailed record of the geologic formations penetrated by a borehole.
Well pad
means the area that is cleared or prepared for the drilling of one or more horizontal wells.³
Well stimulation
or "stimulation of a well" means the process of enhancing well productivity, including hydraulic fracturing operations.³
Wellhead
A system of valves, spools and assorted adapters that provide pressure control of a production well.
Wildcat
a well drilled in an area where no oil or gas production exists.¹
Work String
1. in drilling, the string of drill pipe or tubing suspended in a well to which is attached a special tool or device that is used to carry out a certain task, such as squeeze cementing or fishing. 2. in pipeline construction, the string of washpipe that replaces the pilot string in a directionally drilled river crossing. The work string remains in place under the river until the actual pipeline is made up and is ready to be pulled back across the river.¹
Workover Fluid
a special drilling mud used to keep a well under control while it is being worked over. A workover fluid is compounded carefully so that it will not cause formation damage.¹
Workover Rig
a portable rig used for working over a well.¹
X
Xylene
Colorless liquid of the aromatic group of hydrocarbons made the catalytic reforming of certain naphthenic petroleum fractions. Used as high-octane motor and aviation gasoline blending agents, solvents, chemical intermediates. Isomers are metaxylene, orthoxylene, paraxylene.⁵
Y
Z