Glossary
Browse the IADC Lexicon alphabetically or by category. Get comprehensive definitions of drilling industry terms.
Well Workover Incentive Tax Rate
Definition(s)
Well Workover Incentive Tax Rate
“Well workover incentive tax rate” means the tax rate NMSA 1978, Section 7-29-4 imposes on gas or oil produced from a well workover project. Source: Oil and Gas, New Mexico Administrative Code Title 19, Chapter 15, January 2013. RegulationsTertiary Recovery Project
Definition(s)
Tertiary Recovery Project
“Tertiary recovery project” means an EOR project that:- occurs subsequent to a secondary recovery project’s completion;
- involves the application, in accordance with sound engineering principles, of carbon dioxide miscible fluid displacement, pressure maintenance, water flooding or other division accepted and approved tertiary recovery method that can reasonably be expected to result in an increase, determined in light of the facts and circumstances, in the amount of oil that may ultimately be recovered; and
- encompasses a pool or portion of a pool the boundaries of which can be adequately defined and controlled.
Tertiary Recovery Project
An EOR project using a tertiary recovery method (as defined in the federal June 1979 energy regulations referred to in the Internal Revenue Code of 1986, §4993, or approved by the United States secretary of the treasury for purposes of administering the Internal Revenue Code of 1986, §4993, without regard to whether that section remains in effect) including those listed as follows. Source: Oil and Gas Division, Texas Administrative Code, Title 16, Chapter 3, February 2013. RegulationsTermination
Definition(s)
Termination
“Termination” means the abandonment, completion or suspension of a well’s operations (cessation). Source: Canada Oil and Gas Drilling and Production Regulations, SOR/2009-315, February 2013. Regulations Source: Drilling and Production Guidelines, The Canada-Nova Scotia Offshore Petroleum Board and Canada-Newfoundland and Labrador Offshore Petroleum Board, Canada, March 31, 2011. Regulatory Guidance Source: Nova Scotia Offshore Petroleum Drilling and Production Regulations, SOR/2009-317, Canada, current to May 31, 2012. RegulationsTermination
“Termination” means the operator’s discontinuance of an EOR project. Source: Oil and Gas, New Mexico Administrative Code Title 19, Chapter 15, January 2013. RegulationsTermination
Occurs when the approved fluid injection program associated with an EOR project stops or is discontinued. Source: Oil and Gas Division, Texas Administrative Code, Title 16, Chapter 3, February 2013. RegulationsStripper Well Incentive Tax Rates
Definition(s)
Stripper Well Incentive Tax Rates
“Stripper well incentive tax rates” means the tax rates set for stripper well properties by NMSA 1978, Sections 7-29-4 and 7-31-4. Source: Oil and Gas, New Mexico Administrative Code Title 19, Chapter 15, January 2013. RegulationsStripper Well Property
Definition(s)
Stripper Well Property
“Stripper well property” means an oil or gas producing property that the taxation and revenue department assigns a single production unit number (PUN) and:- if an oil producing property, produced a daily average of less than 10 barrels of oil per eligible well per day for the preceding calendar year;
- if a gas producing property, produced a daily average of less than 60,000 cubic feet of gas per eligible well per day during the preceding calendar year; or
- if a property with wells that produce both oil and gas, produced a daily average of less than 10 barrels of oil per eligible well per day for the preceding calendar year, as determined by converting the volume of gas the well produced to barrels of oil by using a ratio of 6000 cubic feet to one barrel of oil.1
Secondary Recovery Project
Definition(s)
Secondary Recovery Project
“Secondary recovery project” means an EOR project that:- occurs subsequent to the completion of primary recovery and is not a tertiary recovery project;
- involves the application, in accordance with sound engineering principles of carbon dioxide miscible fluid displacement, pressure maintenance, water flooding or other division accepted and approved secondary recovery method that can reasonably be expected to result in an increase, determined in light of the facts and circumstances, in the amount of oil that may ultimately be recovered; and
- encompasses a pool or portion of a pool the boundaries of which can be adequately defined and controlled.
Secondary Recovery Project
An enhanced recovery project that is not a tertiary recovery project. Source: Oil and Gas Division, Texas Administrative Code, Title 16, Chapter 3, February 2013. RegulationsRoutine Maintenance
Definition(s)
Routine Maintenance
“Routine maintenance” means repair or like-for-like replacement of downhole equipment or other procedure an operator performs to maintain the well’s current production. Source: Oil and Gas, New Mexico Administrative Code Title 19, Chapter 15, January 2013. RegulationsRecovered Oil Tax Rate
Definition(s)
Recovered Oil Tax Rate
“Recovered oil tax rate” means the tax rate set forth in NMSA 1978, Section 7-29-4, on oil produced from an EOR project. Source: Oil and Gas, New Mexico Administrative Code Title 19, Chapter 15, January 2013. RegulationsRecovered Oil Tax Rate
The tax rate provided by the Tax Code, §202.052(b). Source: Oil and Gas Division, Texas Administrative Code, Title 16, Chapter 3, February 2013. RegulationsProduction Restoration Project
Definition(s)
production restoration project
“Production restoration project” means returning to production a gas or oil well, including an injection well that has previously produced, which had no more than 30 days of production in a period of 24 consecutive months beginning on or after January 1, 1993 the division has approved and certified. Source: Oil and Gas, New Mexico Administrative Code Title 19, Chapter 15, January 2013. RegulationsProduction Restoration Incentive Tax Exemption
Definition(s)
Production Restoration Incentive Tax Exemption
“Production restoration incentive tax exemption” means the severance tax exemption for natural gas or oil produced from an approved production restoration project found in NMSA 1978, Section 7-29-4. Source: Oil and Gas, New Mexico Administrative Code Title 19, Chapter 15, January 2013. RegulationsPrimary Recovery
Definition(s)
Primary Recovery
“Primary recovery” means the displacement of oil from an oil well or division-designated pool into the well bore by means of the natural pressure of the oil well or pool, including artificial lift. Source: Oil and Gas, New Mexico Administrative Code Title 19, Chapter 15, January 2013. RegulationsPrimary Recovery
The displacement of oil from the reservoir into the wellbore(s) by means of the natural pressure of the oil reservoir, including artificial lift. Source: Oil and Gas Division, Texas Administrative Code, Title 16, Chapter 3, February 2013. RegulationsProject Area
Definition(s)
Project Area
“Project area” means a pool or a portion of a pool that EOR operations directly affect. Source: Oil and Gas, New Mexico Administrative Code Title 19, Chapter 15, January 2013. RegulationsProject Area
“Project area” means an area the operator designates on form C-102, well location and acreage dedication plat that comprises; (1) one or more complete, contiguous spacing units (in one section or in more than one section) that are developed by the horizontal well; or (2) an entire voluntary or statutory unit for an approved enhanced recovery or pressure maintenance project, an approved state exploratory unit, or a participating area in a federal unit. Source: Oil and Gas, New Mexico Administrative Code Title 19, Chapter 15, January 2013. RegulationsProject Area
The geographic area in which a related group of cathodic protection wells is drilled. Source: Oil and Gas Division, Texas Administrative Code, Title 16, Chapter 3, February 2013. RegulationsProject Area
The geographic area in which an exploratory survey involving one or more seismic holes or core holes is carried out. Source: Oil and Gas Division, Texas Administrative Code, Title 16, Chapter 3, February 2013. RegulationsFlow System
Definition(s)
Flow System
“Flow system” means the flow meters, auxiliary equipment attached to the flow meters, fluid sampling devices, production test equipment, the master meter and meter prover used to measure and record the rate and volumes at which fluids are- produced from or injected into a pool;
- used as a fuel;
- used for artificial lift; or
- flared or transferred from a production installation (système d’écoulement).
Expansion Or Expanded Use
Definition(s)
Expansion Or Expanded Use
“Expansion or expanded use” means a significant change or modification as the division determines in:- the technology or process used for the displacement of oil from an oil well or division-designated pool; or
- the expansion, extension or increase in size of the geologic area or adjacent geologic area that could reasonably be determined to represent a new or unique area of activity.