The oil and gas industry uses a lot of terms and phrases you may not be familiar with, so we have compiled a list of some of the most commonly used terms used in the industry in Australia.
Oil and Gas Glossary
A negotiated agreement between a resource company and landholder relating to the rights over designated ‘access land.’
An activity permitted for the resource authority by the particular Act under which it is granted.
Billion cubic feet (of gas)
Environmentally Relevant Activities are industrial, resource or intensive agricultural activities with the potential to release contaminants into the environment. They include a wide range of activities such as aquaculture, sewage treatment, cattle feedlotting, mining and resource activities such as petroleum (which includes coal seam gas), geothermal and greenhouse gas storage activities.
CSIRO’s Gas Industry Social & Environmental Research Alliance is a collaboration between CSIRO, Commonwealth and State Governments and industry established to undertake publicly-reported independent research.
Is a safe and established method used by the petroleum and gas industry since the late 1940s to increase the rate and total amount of petroleum and gas extracted from reservoirs. Water, sand (99%) and household chemicals (1%) are pressure pumped into steel-encased wells to stimulate the opening of cracks in gas-bearing formations.
In order to completely fill a gas piping system (gathering lines) you must be able to purge all air from the pipes – air will naturally accumulate in the high points of the system. Thus companies install High Point Vents on gathering lines to get rid of any air.
The owner and/or occupier (e.g. rental tenant) of private land.
See HPV. Once all air has been purged from a gas piping system (gathering lines), companies must be drain out all the water. Water naturally gravitates to low points of the system, so companies install Low Point Drains.
Liquefied petroleum gas.
Methane is a chemical compound with the chemical formula CH4. It is the primary constituent of natural gas.
A Make Good Agreement is a legally binding agreement entered into by a resource tenure holder and a bore owner about a water bore. An MGA is required for all bores that have had a bore assessment undertaken (not just those with an impaired capacity).
Million tonnes per annum (Mtpa of LNG)
A resource company wishing to begin formal negotiations with a landholder may give the landholder a Notice of Intent to Negotiate. This period is 20 business days and provides a formal window for negotiation of a CCA. The notice will state whether the resource company wishes to negotiate a CCA or a Deferral Agreement.
A legal agreement in which the landholder chooses to ‘opt-out’ of the requirement to enter into a CCA or Deferral Agreement.
A priority agricultural area (as defined in the RPI Act 2014) is an area that includes one or more areas used for a priority agricultural land use, whether it also includes other areas or features, including, for example, a regionally significant water source.
The joule is the standard unit of energy in general scientific applications. One joule is the equivalent of one watt of power radiated or dispatched for one second. One petajoule in 1015 joules (1 million billion) or 278 gigawatt hours.
Liquid, gaseous and solid hydrocarbons including oil, natural gas, gas condensate, ethane, propane, butane and pentane.
A petroleum lease gives its holder the right to explore, test for production and produce petroleum within the defined area of the lease.
An activity that will have no impact or only a minor impact on the business or land use activities of a landholder on which the activity is to be carried out. (N.B. These activities are not considered preliminary activities if they are carried out on land that is being used for intensive farming or broadacre agriculture that is less than 100ha in size or if they affect organic or bio-organic farming).
Is freehold land, or an interest in land less than fee simple held from the State under another Act.
Proven Reserves (1P)
Petroleum that can be estimated with reasonable certainty (at least 90%) to be commercially recoverable. Also known as 1P/P90 reserves.
Proven and Probable Reserves (2P)
Proven petroleum reserves plus reserves deemed probable (at least 50% likely) to be commercially recoverable. Also known as 2P/P50 reserves.
Proven, Probable and Possible Reserves (3P)
Proven and probable reserves plus reserves deemed possible (at least 10%) to be commercially recoverable. Also known as 3P/P10 reserves.