PURPOSE: Since many of the terms used in the oil and gas industry are unique to that industry, this rule provides the definitions found in section 259.050, RSMo for the convenience of those using these rules.

1. (1) See Chapter 259, RSMo, section 259.050 for those words specifically defined by statute—

   1. (A) Applicant well, the well or group of wells from which an area of review is calculated;
   2. (B) Area of review, an area surrounding a single applicant well or extending from the outer perimeter of a group of applicant wells to a minimum of one-half (1/2) mile from the well(s) and including the project area of the well(s);
   3. (C) Area of review well, any well, including water wells and abandoned wells located within the area of review, which penetrates the injection interval;
   4. (D) Certificate of clearance means a permit prescribed by the council for the transportation or the delivery of oil or gas or product and issued or registered in accordance with the rule or order requiring the permit;
   5. (E) Corrective action, remedial action on any area of review well to prevent the migration of fluids from one (1) stratum to another;
   6. (F) Council, the State Oil and Gas Council established by section 259.010;
   7. (G) Exempted aquifer, an aquifer or its portion that meets the criteria in the definition of Underground Source of Drinking Water set forth in subsection (1)(X) of this rule but which has been exempted by the director of the Department of Natural Resources because the aquifer or its portion is oilor gas-producing;
   8. (H) Field, the general area underlain by one (1) or more pools;
   9. (I) Fluid, any material or substance which flows or moves whether in a semi-solid, liquid, sludge or gaseous state;
   10. (J) Gas, all natural gas and all other fluid hydrocarbons which are produced at the wellhead and not defined in this rule as oil;
   11. (K) Illegal gas means gas which has been produced from any well within this state in excess of the quantity permitted by any rule or order of the council;
   12. (L) Illegal oil means oil which has been produced from any well within the state in excess of the quantity permitted by any rule or order of the council;
   13. (M) Illegal product means any product derived in whole or in part from illegal oil or illegal gas;
   14. (N) Injection well, a well into which fluids are injected during all or part of the life of the well, but not including oilor gas-producing wells into which cumulative fluid injection is less than three thousand (3000) reservoir barrels;
   15. (O) Mechanical integrity exists if there is no significant leakage in the casing, tubing or packer; and there is no significant fluid movement into and underground source of drinking water through vertical channels adjacent to the well bore;
   16. (P) Non-commercial gaswell, a well drilled for the sole purpose of furnishing gas for private domestic consumption by the owner and not for resale or trade;
   17. (Q) Oil, crude petroleum oil and other hydrocarbons regardless of gravity which are produced at the wellhead in liquid form and the liquid hydrocarbons known as distillate or condensate recovered or extracted from gas, other than gas produced in association with oil and commonly known as casinghead gas;
   18. (R) Oil and Gas Remedial Fund, fund established by section 259.190.5 into which forfeited bond monies, penalty monies and proceeds from the sale of illegal oil, illegal gas or illegal product are deposited, the monies in which are to be used for plugging abandoned wells as provided for in 10 CSR 50-2.060(10);
   19. (S) Owner, the person who has the right to drill into and produce from a pool and to appropriate the oil or gas s/he produces therefrom either for him/herself or others or for him/herself and others;
   20. (T) Pool, an underground reservoir containing a common accumulation of oil or gas or both; each zone of a structure which is completely separated from any other zone in the same structure is a pool, as that term is used in this chapter;
   21. (U) Producer, the owner of a well(s) capable of producing oil or gas or both;
   22. (V) Product, any commodity made from oil or gas and includes refined crude oil, crude tops, topped crude, processed crude, processed crude petroleum, residue from crude petroleum, cracking stock, uncracked fuel oil, fuel oil, treated crude oil, residuum, gas oil, casinghead gasoline, natural gas gasoline, kerosene, benzine, wash oil, waste oil, blended gasoline, lubricating oil, blends or mixtures of oil with one (1) or more liquid products or by-products derived from oil or gas, and blends or mixtures or two (2) or more liquid products or by-products, derived from oil or gas whether enumerated in this rule or not;
   23. (W) Reasonable market demand means the demand for oil or gas for reasonable current requirements for consumption and use within and without the state, together with such quantities as are reasonably necessary for building up or maintaining reasonable working stocks and reasonable reserves of oil or gas or product;
   24. (X) Underground source of drinking water an aquifer or its portion; which supplies drinking water for human consumption; or in which the water contains less than ten thousand (10,000) mg/l total dissolved solids;

   25. (Y) Waste means and includes:

       1. 1. Physical waste, as that term is gener-

ally understood in the oil and gas industry, but not including unavoidable or accidental waste;

1. 2. The inefficient, excessive or improp-

er use of, or the unnecessary dissipation of reservoir energy;

1. 3. The location, spacing, drilling,

equipping, operating or producing of any oil or gas well(s) in a manner which causes, or tends to cause, reduction in the quantity of oil or gas ultimately recoverable from a pool under prudent and proper operations or which causes or tends to cause unnecessary or excessive surface loss or destruction of oil or gas;

1. 4. The inefficient storing of oil;
2. 5. The production of oil or gas in excess

of transportation or marketing facilities or in excess of reasonable market demand; and

1. 6. Through negligence, the unnecessary

or excessive surface loss or destruction of oil or gas resulting from evaporation, seepage, leakage or deliberate combustion; and

1. (Z) Well, any hole drilled in the earth for or in connection with the exploration, discovery, or recovery of oil or gas, or for, or in connection with the underground storage of gas in natural formation, or for, or in connection with the disposal of salt water, nonusable gas or other waste accompanying the production of oil or gas.

1. (2) All other words used in this rule shall be given their usual customary and accepted meaning, and all words of a technical nature, or peculiar to the oil and gas industry, shall be given that meaning which is generally accepted in the oil and gas industry.

AUTHORITY: sections 259.050, 259.070, 259.140 and 259.190, RSMo 1986.* Original rule filed Oct. 11, 1966, effective Oct. 22, 1966. Amended: Filed Sept. 12, 1973, effective Sept. 22, 1973. Amended: Filed Oct. 14, 1981, effective Feb. 11, 1982. Amended: Filed Sept. 13, 1983, effective Dec. 11, 1983. Amended: Filed May 18, 1987, effective July 24, 1987. *Original authority: 259.050, RSMo 1965, amended 1972, 1987; 259.070, RSMo 1965, amended 1972, 1983, 1987; 259.140, RSMo 1965; and 259.190, RSMo 1965, amended 1983.