The Energy Councilis a nonprofit trade organization that promotes safe and responsible oil and natural gas development in La Plata County. Individual and company members work to build community relations, increase public understanding, and address public issues relative to the industry.
Gas Facts : Terminology
Volume Abbreviations for Natural Gas:
Mcf: one thousand cubic feet of natural gas
Gas Tap - A stipulation in older leases that allow for free natural gas use for the "principal dwelling house" only.
BTU - British Thermal Unit
CCF - One Hundred Cubic Feet
Christmas tree - The arrangement of pipes and valves at the wellhead to control the flow of oil or natural gas and to prevent blowouts. (See Wellhead)
CNG - Compressed Natural Gas
COGCC - Colorado Oil and Gas Conservation Commission
Completion - The procedure by which a successful well is readied for production.
Compressor station - Stations located along natural gas pipelines which recompress gas to ensure an even flow.
Conventional Resource - Any area where natural gas can be drilled and extracted vertically.
Cubic foot - The amount of natural gas required at room temperature at sea level to fill a volume of one cubic foot.
Derrick/Drilling Rig - A steel structure mounted over the borehole to support the drill pipe and other equipment that is lowered and raised during drilling operations.
Directional drilling - A technique that enables drilling at an angle to reach a particular underground formation.
Drilling permit - Authorization from a regulatory agency to drill a well.
Drillbit - Tool used in drilling to break up rock mechanically in order to penetrate the subsoil. The bit drills a circular hole.
EIA - Energy Information Administration
Flaring - The controlled and safe burning of gas which cannot be used for commercial or technical reasons.
Fracturing or fracing - The pumping of a media, typically water, sand and chemical additives, into a reservoir with a controlled force to fracture reservoir rock, resulting in a greater flow of natural gas or oil from the reservoir.
Gas processing plant - A facility which extracts liquefiable hydrocarbons or sulfur from natural gas and/or fractionates a liquid stream.
Gathering - The process of collecting natural gas flowing from numerous wells and bringing it together into pooling areas where it is received into transmission pipelines.
Gathering lines - Pipelines that move natural gas or petroleum from wells to processing or transmission facilities.
Horizontal drilling - An advanced form of directional drilling in which the lateral hole is drilled horizontally.
Landman - The individual in an oil and gas company or agent who negotiates oil and gas leases with mineral owners, cures title defects and negotiates with other companies on agreements concerning the lease.
Liquefied natural gas (LNG) - Natural gas that has been cooled into a liquid state so that it takes up only 1/600 of the volume of natural gas.
Liquefied petroleum gas (LPG) - Propane, butane or propane-butane mixtures derived from crude oil refining or natural gas fractionation. For convenience of transportation, these gases are liquefied through pressurization.
Mineral interest - An ownership of the minerals beneath a tract of land. If the surface ownership and the mineral ownership are different, the minerals are said to be "severed."
Natural gas - A naturally occurring mixture of hydrocarbon and non-hydrocarbon gases found in porous rock formations. Its principal component is methane.
Natural gas liquids (NGL) - A general term for liquid products separated from natural gas in a gas processing plant. These include propane, butane, ethane and natural gasoline.
NGV - Natural Gas Vehicle
Operator - The party responsible for exploration, development or production projects.
Permeability - A measure of the resistance offered by rock to the movement of fluids through it.
Pipeline - A string of interconnected pipe providing a route for natural gas to travel from the wellhead to market. Without pipelines, natural gas cannot be transported and sold at market to provide royalty payments, clean energy and economic benefits to the community.
Plugged and Abandoned - The cementing of a well, the removal of its associated production facilities, the removal or abandonment in-place of its flowline, and the remediation and reclamation of the wellsite.
Pooling - A term frequently used interchangeably with "unitization;" more properly, it refers to the combining of small or irregular tracts into a unit large enough to meet state spacing regulations for drilling permits. "Unitization" is a term used to describe the combined operations of all or some portion of a producing reservoir.
Porosity - The open space within a rock, similar to pores in a sponge.
Processing - The separation of oil, gas and natural gas liquids and the removal of impurities.
Proved Reserves - The quantity of oil and natural gas estimated to be recoverable from known fields under existing economic and operating conditions. This is determined on the basis of drilling results, production and historical trends.
Reservoir - Porous, permeable rock containing oil and natural gas; enclosed or surrounded by layers of less permeable or impervious rock.
Royalty - The share of production or proceeds reserved to a mineral owner under the terms of a mineral lease. Normally, royalty interests are free of all costs of production except production taxes and transportation costs. It is established in the lease by reserving a royalty which is usually expressed as a fraction of production.
Shales - Gas reserves found in unusually nonporous rock, requiring special drilling and completion techniques.
Shut In Well - A well which is producing or capable of producing but is not produced. Reasons for wells being shut in may be lack of pipeline access to market or economically unfavorable market prices.
Spacing - The distance between wells allowed by a regulatory body. Spacing is based on what is deemed to be the amount of acreage that can be efficiently and economically drained by a well.
Spud - The commencement of drilling operations.
Tank Battery - Tank batteries are part of the production equipment installed after a well is completed.
Wellhead - The control equipment fitted to the top of the well, consisting of outlets, valves, blowout-prevention equipment, etc.
Working Interest - The right granted to the lessee of a property to explore for and to produce and own oil, gas or other minerals. The working interest owners bear the exploration, development and operating costs.
Unconventional Resource - Any area (shales, tight sands, fractured carbonates) where natural gas cannot be drilled and extracted vertically.