Tenure Glossary and Definitions
|Capable of producing in paying quantity||
Alberta Energy determines capability by several factors, including production, tests, reserves, logs and mapping of wells on the agreement and in the area.
|continuation||Refers to the system in place for allowing lessees to retain the productive rights in their agreements past the initial term's expiry date.|
|Crown||The Government of Alberta (that is, the Crown in Right of Alberta).|
|Crown rights||Surface rights or mineral rights that are owned by the government of Alberta.|
|deeper rights reversion||The requirement that unproven zones are returned to the Crown at the expiry of an agreement.|
|Deeper Rights Reversion Zone Designation (DRRZD)||Identifies a zone by its name. DRRZDs are used primarily for deeper rights reversion, but can also be used for other purposes, such as offsets. See also zone designation. As noted in AER Decision 95-10, historically the name of the zone identified within type wells takes precedence over the depths identified in terms of utilizing a DRRZD.|
A body of rock identified by lithic characteristics and stratigraphic position; it is prevailingly but not necessarily tabular, and is mapped on the Earth’s surface or traceable in the subsurface.
|Information Letter||Publications issued periodically by the Department of Energy to advise industry clients of changes in policy and pricing, to communicate proposed changes to legislation and business rules, and to solicit feedback to proposals.|
|Information Bulletin||Publications used to notify industry regarding items such as proposed changes to legislation, regulations or operating procedures with the intent of soliciting feedback; new or changes to existing programs, projects, services, strategies or organizational structure; industry participation in department initiatives.|
|land sale||See public offering.|
|lease||An agreement that grants rights to develop and use resources.|
|lease continuation||The process of continuing the term of a lease to a company or individual who holds a primary lease (or equivalent).|
|mineral rights||The rights to explore for, produce and sell the minerals contained in a parcel of land. This entitlement may accrue through freehold ownership or through a Crown leasing arrangement.|
|potentially productive zone||A zone that is, in the opinion of the Minister, potentially capable of producing petroleum or natural gas or both in paying quantity.|
|producing||A lease classification indicating that a continued lease has met the required minimum level of production and is therefore not subject to escalating rent.|
Capable, in the opinion of the Minister, of producing petroleum or natural gas from a well in paying quantity.
|productivity test||Tests in an oil or gas well to determine the flow capacity at specific conditions of a reservoir and flowing pressures.|
|public offering||A public auction during which oil sands rights are awarded to the highest bidder. Public offerings are also called sales or land sales.|
|reservoir||A subsurface body of (sedimentary) rock having sufficient porosity and permeability to store and transmit fluids.|
This reference is used when referring to the agreement the well is drilled on. If a well is vertically or horizontally drilled within a singular licence, the source agreement is considered to be the agreement the well is drilled upon. However, if the well drills through multiple licence agreements, the agreement upon which the well bottom holes is considered to be the source agreement.
|tenure||Describes the system through which Crown-owned mineral rights, including oil sands rights, are leased and administered.|
|test||Physical recovery of a measurable quantity of hydrocarbons at the surface.|
|zone||A stratum or series of strata considered by the Minister to be a zone for the purposes of the PNG Tenure Regulation.|
|zone designation||Designates a litho-stratigraphic zone described specifically by the depths identified in a particular well. ZDs are used, for instance, to describe the zones included in natural gas leases. When a ZD is being used, the depths and the interval take precedence over the name given to the zone. Also see Deeper Rights Reversion Zone Designation DRRZD.|