GENERAL PROVISIONS
§ 79.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Act—The Oil and Gas Conservation Law (58 P. S. § § 401—419). This chapter applies only to the formations and the wells which are covered by the act.
Blowout—A sudden or violent escape of oil or natural gas, as from a drilling well when high formational pressure is encountered.
Blowout preventer—A heavy casinghead control fitted with special gates or rams which can be closed around the drill pipe, or which completely closes the top of the casing.
Casinghead gas—Gas or vapor, or both gas and vapor, indigenous to an oil stratum and produced from the stratum with oil.
Common source of supply—A pool.
Condensate—Liquid hydrocarbons which were originally in the gaseous phase in the reservoir.
Correlative rights—The rights of each owner of oil and gas interest in a common pool or source of supply of oil or gas to have a fair and reasonable opportunity to obtain and produce his just and equitable share of the oil and gas in the pool or sources of supply without being required to drill unnecessary wells or incur other unnecessary expense to recover or receive the oil or gas or its equivalent.
Cubic foot of gas—The volume of gas contained in one cubic foot of space at a standard pressure base and a standard temperature base. For Department reports only, the standard pressure base shall be 14.73 pounds per square inch absolute and the standard temperature base shall be 60°F.
Drill—To drill or redrill a well or deepen an existing well.
Drilling unit—The term includes spacing unit and means the area designated in a spacing order as a unit and within which all operators have the opportunity to participate in the well or wells drilled thereon on a just and equitable basis.
Fees—Fees, as provided in the act, shall be made payable to the ‘‘Commonwealth of Pennsylvania’’ and credited to the account of the Department for its use under the act.
Gas—Natural gas and other volatile hydrocarbons not defined as oil, including condensate because it originally was in a gaseous phase in the reservoir.
Lease—A tract or tracts of land which by virtue of an oil and gas lease, fee or oil and gas ownership, constitute a single tract or leasehold estate for the purpose of the development or operation thereof for oil or gas, or both.
Nonparticipating operator—An operator who owns an interest in land included in a spacing unit, and who has not elected to participate in the drilling, equipping, completing and operating the well or wells to be drilled on the unit, and to share in the costs of the same.
Oil—Crude petroleum oil and other hydrocarbons regardless of gravity produced at a well in liquid form by ordinary production methods. The term does not include liquid hydrocarbons which were originally in a gaseous phase in the reservoir.
Operator—An owner of the right to develop, operate and produce oil and gas from the pool. If there is no oil and gas lease in existence, the owner of the oil and gas rights shall be considered as operator to the extent of 7/8 of the oil and gas in that portion of the pool underlying the tract owned by that owner and a royalty owner as to a 1/8 interest in the oil and gas. If the oil is owned separately from the gas, the owner of the substance being produced or sought to be produced from the pool shall be considered as operator of the pool.
Participating operator—An operator who owns an interest in land included in a spacing unit, and who has elected to participate in the drilling, equipping, completing and operating the well to be drilled on the unit, and to share in the costs of the same.
Person—A natural person, corporation, association, partnership, receiver, trustee, executor, administrator, guardian, fiduciary or other representative, of any kind. The term includes a department, agency or instrumentality of the Commonwealth or a governmental subdivision thereof.
Pool—An underground reservoir containing a common accumulation of oil or gas, or both, not in communication laterally or vertically with another accumulation of oil or gas.
Producer—The owner of a well capable of producing oil or gas, or both.
Royalty owner—An owner of oil or gas in place of oil or gas rights subject to a lease covering the oil or gas in place or oil or gas rights. The term also includes an owner of an interest in an oil or gas lease which entitles him to share in the production of the oil or gas under the lease or the proceeds therefrom without obligating him to pay any costs under the lease. The term also includes the owner of an interest in the oil or gas in place or oil or gas rights who has not executed an oil or gas lease to the extent that the owner is not designated an operator.
Spacing unit—A drilling unit.
Waste—The following is considered waste:(i) Physical waste as the term is generally understood in the oil and gas industry which includes the following:
(A) Permitting the migration of oil, gas or water from the stratum in which it is found to other strata if the migration would result in the loss of recoverable oil or gas, or both.
(B) The drowning with water of a stratum or part thereof capable of producing oil or gas in paying quantities except for secondary recovery purposes or in hydraulic fracturing or other completion practices.
(C) The unnecessary or excessive surface loss or destruction of oil or gas.
(D) The inefficient or improper use, or unnecessary dissipation of reservoir energy.
(ii) The drilling of more wells than are reasonably required to recover efficiently and economically the maximum amount of oil and gas from a pool.
Authority The provisions of this § 79.1 amended under the Oil and Gas Act (58 P. S. § § 601.101—601.605); the Coal and Gas Resource Coordination Act (58 P. S. § § 501—518); the Oil and Gas Conservation Law (58 P. S. § § 401—419); Article XIX-A of The Administrative Code of 1929 (71 P. S. § § 510-1—510-108); The Clean Streams Law (35 P. S. § § 691.1—691.1001); and the Soild Waste Management Act (35 P. S. § § 6018.101—6018.1003).
Source The provisions of this § 97.1 adopted August 12, 1971, effective August 13, 1971, 1 Pa.B. 1726; amended July 28, 1989, effective July 29, 1989, 19 Pa.B. 3229. Immediately preceding text appears at serial pages (121570) and (4461) to (4462).
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