A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Acquisition Costs - Direct costs and indirect costs incurred to acquire legal rights to wasting natural resources. Direct costs include costs incurred to obtain options to lease or purchase mineral rights and costs incurred for the actual leasing (e.g., lease bonuses) or purchasing of the rights. Indirect costs include such costs as: brokers' commissions and expenses; abstract and recording fees; filing and patenting fees; and costs of legal examination of title and documents.

Acreage - An area, measured in acres, that is subject to ownership or control by those holding total or fractional shares of working interests. Acreage is considered developed when development has been completed. (See definition for Working Interest.) A distinction may be made between 'gross' acreage and 'net' acreage: Gross. All acreage covered by any working interest, regardless of the percentage of ownership in the interest. Net. Gross acreage adjusted to reflect the percentage of ownership in the working interest in the acreage.

Affiliate - An 'affiliate' of, or a person 'affiliated' with, a specific person is a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified. The term 'affiliate' includes any subsidiary or parent of the person specified.

Aggregator - Entity responsible for all aspects of energy delivery from its own portfolio of buyers and sellers. Aggregators gather customers or generators to buy/sell bulk power, making a profit on the transaction.

Alternative Energy Source - Refer to Renewable Energy.

Amortization - The depreciation, depletion, or charge-off to expense of intangible and tangible assets over a period of time.

ASHRAE - Acronym for American Society of Heating, Refrigerating and Air Conditioning Engineers.

Average Cost - Utility revenue divided by utility sales. Average cost typically includes the costs of existing power plants, transmission and distribution lines, and any additional facilities used by the utility in behalf of the customer.

Ballast - A device that provides starting voltage and limits the current during normal operation in electrical discharge lamps (i.e., florescent lamps).

Base Load - Lowest level of power production during a given season or specified time frame.

Base Load Unit - A power generating facility that runs constantly at near capacity level.

Base Rate - Amount of the total electric or gas rate covering the general expense of business without the fuel expense.

Boiler - A closed container or vessel in which water is converted to pressurized steam.

Branded Product - A refined petroleum product sold by a refiner with the understanding that the purchaser has the right to resell the product under a trademark, trade name, service mark, or other identifying symbol or names owned by such refiner.

Brownout - Controlled reduction of power by utility in which it decreases the voltage on the power lines. Brownouts are initiated when total power demand exceeds maximum power supply.

Btu - British Thermal Unit (Btu) is the standard unit of measure of heat energy. It takes one Btu to increase the temperature of one pound of water by one degree Fahrenheit. One Btu is equivalent to 252 calories and 0.293 watt-hours.

Building Envelope - Exterior building partitions that enclose 'conditioned' areas or space.

Bulk Power Supply - Also known as wholesale power supply. Either refers to an aggregate of electric generating plants, transmission lines, and associated equipment. May refer to facilities of one electric utility or a group in which transmission lines are interconnected.

Capacity - The maximum amount of electricity that a power plant, generating facility or utility can produce under specific requirements. Capacity is measured in megawatts (MW).

Capacity Release - The secondary market for excess capacity previously contracted by a customer.

CFCs - Chlorofluorocarbons or chlorinated fluorocarbons are artificially produced chemicals that are partly responsible for depletion of the ozone layer. CFCs have been used in refrigerants and a variety of other solvents since introduced in mid-1930.

CFM - Cubic feet per minute is a measure of flow rate.

Chiller - A water-cooling device that generally reduces water temperature to approximately 45 degrees Fahrenheit and is used to cool air.

Christmas Tree - The valves and fittings installed at the top of a gas or oil well to control and direct the flow of well fluids.

Circuit - A complete set of electric conductors from the power source to various devices and back to the power source.

Coal Gasification - The process of converting coal into gas. The basic process involves crushing coal to a powder, which is then heated in the presence of steam and oxygen to produce a gas. The gas is then refined to reduce sulfur and other impurities. The gas can be used as a fuel or processed further and concentrated into chemical or liquid fuel.

Coal Liquefaction - A chemical process that converts coal into clean-burning liquid hydrocarbons, such as synthetic crude oil and methanol.

Coal Regions - The following regional definitions are used to report domestic coal reserves, production, and other operating statistics. Eastern Region. Consists of the Northern Appalachian Coal Basin. The following States comprise the Eastern Region: Alabama, Georgia, Ohio, Maryland, Mississippi, Pennsylvania, Virginia, Tennessee, North Carolina, West Virginia, and Eastern Kentucky. Midwest Region. Consists of the Illinois and Michigan Coal Basins. The following States comprise the Midwest Region: Illinois, Indiana, Michigan, and Western Kentucky. Western Region. Consists of the Northern Rocky, Southern Rocky, Western Interior, and West Coast Coal Basins. The following States comprise the Central Western Region: Alaska, Arizona, Arkansas, California, Colorado, Idaho, Iowa, Kansas, Louisiana, Missouri, Montana, New Mexico, North Dakota, Oklahoma, Oregon, Texas, South Dakota, Utah, Washington, and Wyoming.

Cogenerator - Unit that uses waste heat created by one process to produce steam which in turn is used to spin a turbine to generate electricity.

Cogeneration - Sequential use of energy for the production of electrical and useful thermal energy.

Combined Cycle Plant - Electric generating station using waste-heat from its gas turbines to produce steam for conventional steam turbines.

Comfort Conditioning - Treating the air to simultaneously control humidity, temperature, freshness, and circulation - ensuring occupant comfort.

Company Automotive (Retail) Outlet - Any retail outlet selling motor fuel under a 'reporting company' brand name. (See definition for Branded Product.)

Company Operated - A company 'retail' outlet operated by personnel paid by the reporting company. Lessee. An independent marketer who leases the station and land and has use of tanks, pumps, signs, etc. A lessee dealer typically has a supply agreement with a refiner or a distributor, and purchases products at dealer tank wagon prices. The term 'lessee dealer' is limited to those dealers who are supplied directly by a refiner or any affiliate or subsidiary company of a refiner. 'Direct supply' includes use of commission agent or common carrier delivery. Open. An independent marketer who owns or leases (from a third party-not a refiner) the station or land of a retail outlet and has use of tanks, pumps, signs, etc. An open dealer typically has a supply agreement with a refiner or a distributor, and purchases products at or below dealer tank wagon prices.

Condenser - Heat exchanger in which the refrigerant is compressed to hot air and condensed to liquid by eliminating heat.

Conservation - Proactive measures taken to reduce energy usage including for example improved efficiency, reduced waste, reduced consumption, enhanced building envelop, equipment modifications, etc.

Contribution to Net Income - The FRS segment equivalent of net income. However, many consolidated items of revenue and expense are not allocated to the segments, and therefore they are not equivalent in a strict sense. The largest item not allocated to the segments is interest expense since this is regarded as a corporate-level item for FRS purposes.

Cooperative - An aggregate of consumers, self-organized, joined together to make utility service available in their area.

Crude Oil - A mixture of hydrocarbons that exists in liquid phase in natural underground reservoirs and remains liquid at atmospheric pressure after passing through surface separating facilities. For FRS reporting, volumes reported as crude include: … Liquids technically defined as crude oil. … Small amounts of hydrocarbons that exist in the gaseous phase in natural underground reservoirs but are liquid at atmospheric pressure after being recovered from oil well (casinghead) gas in lease separators and are commingled with the crude stream without being separately measured. … Small amounts of nonhydrocarbons produced with the oil. Statistical data pertaining to crude oil production and reserves are reported as liquid equivalents at the surface (excluding base sediment and water) measured in terms of stock tank barrels of 42 U.S. gallons at atmospheric pressure, corrected to 60 degrees Fahrenheit. Where a state regulatory agency specifies a definition of crude oil which differs from that set forth above for statistical purposes, the state definition takes precedence.

DD&A - Abbreviation for depreciation, depletion and amortization.

Deferred Taxes - Taxes accrued and reflected as an expense in a company's income statement, but not payable to the taxing authority in that time period. These taxes are accrued to compensate for an understatement of income tax expense that would occur if only the tax currently due to the taxing authority was reflected as the total income tax expense.

Degree-Day - Unit used in estimating consumption of fuel and estimating annual building load requirements. The unit is based on difference in temperature over time.

Demand - The rate at which energy is delivered to loads and scheduling locations by generation, transmission, or distribution facilities. For utility, it is level at which electricity or gas is delivered to users at a point in time.

Demand Side Management - Utility-sponsored programs to influence the time of use and amount of energy use by select customers.

Depletion - A term for either (1) a periodic assignment to expense of recorded amounts or (2) an allowable income tax deduction that is related to the exhaustion of mineral reserves. Depletion is included as one of the elements of amortization. When used in that manner, depletion refers only to book depletion (see definition for Amortization). Book. The portion of the carrying value (other than the portion associated with tangible assets) prorated in each accounting period, for financial reporting purposes, to the extracted portion of an economic interest in a wasting natural resource. Tax-cost. A deduction (allowance) under U.S. Federal Income taxation. Normally calculated under a specified formula whereby the adjusted basis of the mineral property is multiplied by a fraction. The numerator is the number of units of minerals sold during the tax year) and the denominator is the estimated number of units of 'un-extracted' minerals remaining at the end of the tax year plus the number of units of minerals sold during the tax-year. Tax- percentage (or Statutory). A deduction (allowance) allowed to certain mineral producers under U.S. Federal income taxation. It's calculated on the basis of a specified percentage of gross revenue from the sale of minerals from each mineral property not to exceed the lesser of 50 percent of the taxable income from the property computed without allowance for depletion. (There are also other limits on percentage depletion on oil and gas production.) The taxpayer is entitled to a deduction encompassing either the tax-cost depletion amount or the percentage of (statutory) depletion; whichever is greater. Excess Statutory Depletion. The excess of estimated statutory depletion allowable as an income tax deduction over the amount of cost depletion otherwise allowable as a tax deduction, determined on a total enterprise basis.

Depreciation - See definition for Amortization.

Development - The preparation of a specific mineral deposit for commercial production; this preparation includes construction of access to the deposit and of facilities to extract the minerals. The development process is sometimes further distinguished between a pre-production stage and a current stage, with the distinction being made on the basis of whether the development work is performed before or after production from the mineral deposit has commenced on a commercial scale.

Development Costs - Costs incurred to obtain access to proved reserves and to provide facilities for extracting, treating, gathering, and storing the oil and gas. More specifically, development costs, and also depreciation and applicable operating costs of support equipment and facilities and other costs of development activities, are costs incurred to: Gain access to and prepare well locations for drilling, including surveying well locations for the purpose of determining specific development drilling sites, clearing ground, draining, road building, and relocating public roads, gas lines, and power lines, to the extent necessary in developing the proved reserves; Drill and equip development wells, development-type stratigraphic test wells, and service wells, including the costs of platforms and of well equipment such as casing, tubing, pumping equipment, and the wellhead assembly; Acquire, construct, and install production facilities such as lease flow lines, separators, treaters, heaters, manifolds, measuring devices, and production storage tanks, natural gas cycling and processing plants, and utility waste disposal systems; and Provide improved recovery systems.

Direct Access - Ability of a retail electricity customer to purchase commodity directly from the wholesale market rather than through a local distribution company (LDC).

Disaggregation - Functional separation of the 'vertically-integrated' utility into smaller, individually owned business units (i.e., generation, transmission, and distribution). Refer to divestiture.

Distillate - A general classification for one of the petroleum fractions produced in conventional distillation operations. Included are kerosene and products known as heating oils and diesel fuels, specifically No. 1, No. 2, and No. 4 Fuel Oils and No. 1, No. 2, and No. 4 Diesel Fuels.

Distributed Generation - This type of system involves small amounts of generation located on the utility's distribution system for the purpose of meeting substation level (local) peak loads and/or eliminating the need to upgrade local distribution lines.

Distribution - Delivery of electricity to retail customer (home or business) through low- voltage distribution lines.

Distribution System - Electric Grid. Substations, transformers, and lines that convey electricity from high-power transmission lines to the end-user customer.

Distribution Utility/Company - (Disco). Regulated utility that constructs and maintains the distribution wires connecting the transmission grid to the end-user customer. At times, discos perform other services such as: customer aggregation, purchasing power supply, transmission services, billing, reimbursing suppliers and offering other regulated or non-regulated energy services to retail customers.

Divestiture - Removal of utility functions from one another by selling-off or in some other way changing the ownership of the related assets. For example, this is most commonly associated with generation assets that are 'spun-off,' so these assets are no longer associated with the shareholders that own the transmission and distribution (T&D) assets.

Domestic Operations - Domestic operations are those operations located in the United States. The U.S. is defined as the 50 states, including their offshore territorial waters, the District of Columbia, U.S. commonwealth territories, and protectorates.

Drilling - The act of boring a hole (1) to determine whether minerals are present in commercially recoverable quantities and (2) to accomplish production of the minerals (including drilling to inject fluids). Exploratory. Drilling to locate probable mineral deposits or to establish the nature of geological structures; such wells may not be capable of production if minerals are discovered.

Developmental Drilling - to delineate the boundaries of a known mineral deposit to enhance the productive capacity of the producing mineral property.

Directional Drilling - that is deliberately made to depart significantly from the vertical.

Drilling and Equipping of Wells - The drilling and equipping of wells through completion of the 'christmas tree'.

Dry- Hole Charge - The charge-off to expense of a previously capitalized cost upon the conclusion of an unsuccessful drilling effort.

DSM - Demand side management is a method used to manage energy demand including energy efficiency, load management, alternate fuels, and load build.

Economy Energy - Electricity purchased by one utility from another to take the place of electricity that would have cost more to produce on the utility's own system.

EEI - The Edison Electric Institute is an association of electric companies born in 1933 to exchange information concerning industry developments and to function as an advocate in behalf of the utilities on subjects of national interest.

Efficacy Lighting - Ratio of light from a lamp to the electricity consumed, including ballast loss in terms of lumens per watt.

Efficiency - The ratio of useful energy delivered compared to the energy supplied to it over a specified time frame or cycle.

Electric Generator - A system that converts heat, chemical, or mechanical energy into electricity.

Electric Utility - Any individual or state agency (i.e., municipality) with a monopoly franchise that sells electricity to end-use customers. This term includes the Tennessee Valley Authority (TVA), but does not include other Federal power marketing agencies from the EPAct.

Electricity - Form of energy with magnetic, radiant and chemical effects. Electric current is created by a flow of charged particles (electrons).

Emission Standard - The maximum amount of a pollutant legally discharged from a source.

Energy Efficiency - Reduce the amount of energy/electricity used to perform the same function more efficiently. Refer to Energy Conservation.

Energy Management System - (EMS) A control system designed to regulate a building's energy consumption including HVAC and lighting,

EPA - The Environmental Protection Agency is a federal agency born in 1970 -charged with protecting the environment.

EPAct - The Energy Policy Act of 1992 addresses a wide variety of issues. This legislation created a new class of energy wholesale generators (EWG) that are exempt form the Public Utilities Holding Company Act of 1935 and provides the authority to FERC to order and commission access by eligible parties to the interconnected transmission grid.

Equity in Earnings of Unconsolidated Affiliates - A company's proportional share (based on ownership) of the net earnings or losses of an unconsolidated affiliate.

ESCO - An energy service company is one that offers comprehensive, customized energy saving solutions to its customers. NORESCO.

Exploration - The identification of areas that may warrant examination and to examine specific areas that are considered to have prospects of containing oil and gas reserves, including drilling exploratory wells and exploratory-type stratigraphic test wells. Exploration costs may be incurred both before acquiring the related property (sometimes referred to in part as prospecting costs) and after acquiring the property.

Exploration Costs - Costs, including depreciation and applicable operating costs, of support equipment and facilities and other costs directly identifiable with exploration activities, such as: … Costs of topographical, geological, and geophysical studies, rights of access to properties to conduct those studies, and salaries and other expenses of geologists, geophysical crews, and others conducting those studies. Collectively, these costs are sometimes referred to as geological and geophysical, or 'G&G' costs. … Costs of carrying and retaining undeveloped properties, such as delay rentals, ad valorem taxes on the properties, legal costs for title defense, and the maintenance of land and lease records. … Dry hole contributions and bottom hole contributions. Costs of drilling and equipping exploratory wells. … Costs of drilling exploratory-type stratigraphic test wells.

Extraordinary Item - Income and expense items associated with events and transactions that possess a high degree of abnormality and are of a type that would not reasonably be expected to recur in the foreseeable future.

Federal Emergency Management Agency - FEMA is the federal agency in charge of disaster recovery in locations declared 'official' disaster areas.

Federal Energy Regulatory Commission - FERC is an independent regulatory commission within the U.S. DOE and has jurisdiction over energy producers that sell or transport fuel for resale in interstate commerce.

Field - An area consisting of a single reservoir or multiple reservoirs all grouped on or related to the same individual geological structural feature and/or stratigraphic condition. There may be two or more reservoirs in a field, which are separated vertically by intervening impervious strata, or laterally by local geologic barriers, or by both.

Firm Energy - Supply guaranteed to be delivered under terms defined by contract.

Fluorescent Lamp - Tubular electric lamp that is coated on the inside surface with a phosphor and that also contains mercury vapor. When inundated by electrons from the cathode, it provides ultraviolet light that causes the phosphor to emit visible light.

Footage Drilled - Total footage for wells in various categories, as reported for any specified period. Includes: (1) the deepest total depth (length of well bores) of all wells drilled from the surface, (2) the total of all bypassed footage drilled in connection with reported wells, and (3) all new footage drilled for directional 'sidetrack' wells. Footage reported for directional 'sidetrack' wells do not include footage in the common bore; reported as footage for the original well. In the case of old wells drilled deeper, the reported footage is that which was drilled below the total depth of the old well. Deepest Total Depth. The deepest total depth of a given well is the distance from a surface reference point (usually the Kelly bushing) to the point of deepest penetration measured along the well bore. If a well is drilled from a platform or barge over water, the depth of the water is included in the total length of the well bore. Sidetrack Drilling. This is a remedial operation that results in the creation of a new section of well bore for the purpose of (1) detouring around junk, (2) re-drilling lost hole, or (3) straightening key seats and crooked holes. Directional 'sidetrack' wells do not include footage in the common bore that is reported as footage for the original well.

Foreign Access - Refers to proved reserves of crude (including lease-condensate) and natural gas liquids applicable to long-term supply agreements with foreign governments or authorities in which the company acts as producer.

Foreign Operations - These are operations that are located outside the United States. Determination of whether an enterprise's mobile assets, such as offshore drilling rigs or ocean-going vessels, constitute foreign operations should depend on whether such assets are normally identified with operations located outside the United States. Foreign operations are segregated into the following areas for FRS reporting purposes: OECD Europe. Includes Austria, Belgium, Denmark, Finland, France, the Federal Republic of Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, and the United Kingdom. Former Soviet Union (FSU) and East Europe. The Baltic States of Estonia, Latvia, and Lithuania, as well as Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgystan, Moldova, Russia, Tajikstan, Turkmenistan, Ukraine, Uzbekistan, Albania, Bulgaria, Czech Republic, Hungary, Poland, Romania, Slovakia, and Yugoslavia. Middle East. Includes Saudi Arabia, the United Arab Emirates, Iraq, Iran, Kuwait, the Iraq- Saudi Arabia Neutral Zone, Qatar, Dubai, Bahrain, Oman, Yemen, Syria, Jordan, and Israel. Canada. Africa (the African continent). Other Eastern Hemisphere. Areas eastward of the Greenwich prime meridian to 180 degrees longitude and not included in other specified domestic or foreign classifications. Other Western Hemisphere. Areas westward of the Greenwich prime meridian to 180 degrees longitude not included in other domestic or foreign classifications.

Fuel - A substance used to produce heat.

Fuel Cell - A device that converts the chemical energy of a fuel and an oxidant directly into electricity. The principal components of a fuel cell include electrodes catalytically activated for the fuel (anode) and the oxidant (cathode), and an electrolyte to conduct ions between two electrodes; thereby producing electricity.

Funds From Operations - Calculated by adding non-cash charges back to net income or contribution to net income. Deferred taxes and depreciation, depletion, and amortization (DD&A) are the largest non-cash charges.

Funds, Total Sources of - The total source of funds including net income plus non-cash charges such as DD&A and deferred taxes, issuance of stocks and bonds, and proceeds from the sale or property, plant, and equipment. The concept is similar to cash flow generated, but does not attempt to account for changes in working capital items. Thus, for example, an inventory buildup or drawdown would not be accounted for under the 'funds' concept since both cash and inventory are items of working capital.

Gas - Gaseous fuel, typically natural gas that is burned to produce heat energy.

Gas Utility - Individual or entity engaged in distributing or transporting natural gas.

Generating Station - A central station generating facility-producing energy. Refer to Power Plant.

Generation Company - A GENCO is a regulated or non- regulated entity that operates and maintains existing generating plants.

Geological and Geophysical (G&G) Costs - Costs incurred in making geological and geophysical studies, including, but not limited to, costs incurred for salaries, equipment, obtaining rights of access, and supplies for scouts, geologists, and geophysical crews.

Gigawatt Hour - A GWH is one million kilowatt- hours of electric power.

Grid - The electric grid is a system of interconnected power lines and generators that is managed so generators are dispatched as needed to points on the grid. A grid can also refer to the layout of a gas distribution system in which pipes are laid in both directions and connected at intersections.

Heat Pump - Conditioning unit capable of heating air by refrigeration transferring heat from one medium to another. It may/may not include a capability for cooling.

HVAC - Heating, ventilation and air conditioning. A system providing heating, ventilation, and/or cooling.

Hydrocarbon - An organic chemical compound of hydrogen and carbon in either the gaseous, liquid, or solid phase. The molecular structure of hydrocarbon compounds varies from the simplest (e.g., methane, a constituent of natural gas) to the very heavy and very complex.

Improved Recovery - The operation whereby crude oil or natural gas is recovered using any method other than those that rely primarily on the use of natural reservoir pressure, gas lift, or a pump.

Incandescent Lamp - Electric lamp in which an electric current heats a filament until it emits light.

Independent Power Producer - An IPP generates power, which is then purchased at wholesale price by the electric utility. The utility then resells the electricity to end-use customers.

Intangible Drilling and Development Costs (IDC) - Costs incurred in preparing well locations, drilling and deepening wells, and preparing wells for initial production up through the point of installing control valves. None of these functions, because of their nature, have salvage value. Such costs would include labor, transportation, consumable supplies, drilling tool rentals, site clearance, and similar costs.

Interruptible Service/Interruptible Supply - Power supplied under agreements that allow the supplier to curtail service at times.

Investment and Advances to Unconsolidated Affiliates - The balance sheet account representing the cost of investments and advances to unconsolidated affiliates. Generally, affiliates that are less than 50 percent owned by a company may not be consolidated into the company's financial statements.

ISDN - The Integrated Services Digital Network is a 128 Kbps digital service.

ISO - An Independent System Operator is a 'neutral' operator responsible for maintaining instantaneous balance of the grid system.

KBtu - One thousand Btus.

Kilowatt - Abbreviated kW, it is equivalent to one thousand watts.

Kilowatt-Hour - Abbreviated kWh, it is the most commonly used unit of measures concerning electricity consumption over time. One kWh means one kilowatt of electricity supplied for one hour.

LDC - Local Distribution Company and/or Local Distribution Utility.

Lease Bonus - An amount paid by a lessee to a lessor as consideration for granting a lease, usually as a lump sum; this payment is in addition to any rental or royalty payments.

Lease Equipment - All equipment located on the lease except the well and the complete 'christmas tree' installation.

Lifting Costs - The costs associated with the extraction of a mineral reserve from a producing property. Refer to Production Cost.

Load - The amount of electric power supplied to meet one or more end-user's requirements. May also refer to an end-use devise or end-use customer that consumes power.

Load Factor - The percentage difference in the amount of electricity used during a specified time period vs. the usage amount had it remained at the consumer's highest demand level for the duration. The term is also used to mean the percentage of capacity of an energy facility.

Load Management - Action taken to improve power demand at time of peak loads and to shift some of the load to off- peak times.

Lumen - A measure of the amount of light from a source typically equivalent to the light emitted by one candle.

Luminaries - Complete lighting unit consisting of the lamps and associated parts.

Megawatt - One MW is equal to one thousand kilowatts (1,000 kW) or one million watts.

Megawatt Hour - One MWh is equal to one thousand kilowatt-hours.

Meter - A device for measuring electric or natural gas use.

Mineral - Any of the various naturally occurring substances (such as coal, crude oil, metals, natural gas, salt, sand, stone, sulfur, and water) usually obtained from the earth. The term is used to include all wasting, i.e., non-regenerative, inorganic substances that are extracted from the earth.

Mineral Interests in Properties (hereinafter referred to as Properties) - These include fee ownership or a lease, concession, or other contractual interest representing the right to extract minerals subject to such terms as may be imposed by the conveyance of those interests. Properties also include royalty interests, production payments payable in oil or gas, and other non-operating interests in properties operated by others. Properties include agreements with foreign governments or authorities under which an enterprise participates in the operation of the related properties or otherwise serves as 'producer' of the underlying reserves. However, properties do not include other supply agreements or contracts that represent the right to purchase (as opposed to extract) oil and gas.

Mineral Lease - An agreement wherein a mineral interest owner (lessor) conveys to another party (lessee) the rights to explore for, develop, and produce specified minerals. The lessee acquires a working interest and the lessor retains a non-operating interest in the property, referred to as the royalty interest, each in proportions agreed upon.

Mineral Rights - The ownership of the minerals beneath the earth's surface with the right to remove them. Mineral rights may be conveyed separately from surface rights.

Mining - Any activity directed to the extraction of ore and associated rock. Included are open pit work, quarrying, auguring, alluvial dredging, and combined operations, including surface and underground operations.

Minority Interest in Income - The proportional share of the minority ownership's interest (less than 50 percent) in the earnings or losses of the consolidated subsidiary. … Subsidiaries are generally fully consolidated when the parent company holds an ownership-share of between 51 percent and 100 percent. In consolidation, 100 percent of revenues, expenses, assets, etc. are included in the financial statements even though, for example, the subsidiary is only 80 percent owned by the parent company. In such cases, the consolidated balance sheet must have a caption on the right-hand side titled something like 'minority interests in consolidated affiliates,' and the income statement must have a similar line to reduce net income to the pro-rata (e.g., 80 percent) share of the consolidated subsidiary's net income.

Motor Gasoline (Finished) - A complex mixture of relatively volatile hydrocarbons, with or without small quantities of additives, that has been blended to form a fuel suitable for use in spark- ignition engines. Motor gasoline, as given in ASTM Specification D439 or Federal Specification VV-G-l690B, includes a range in distillation temperatures from 122 to 158 degrees Fahrenheit at the 10-percent recovery point and from 365 to 374 degrees Fahrenheit at the 90-percent recovery point. Motor gasoline includes reformulated motor gasoline, oxygenated motor gasoline, and other finished motor gasoline. Blend-stock is excluded until blending has been completed. Reformulated Motor Gasoline. Gasoline reformulated for use in motor vehicles, the composition and properties that meet the requirements of the reformulated gasoline regulations promulgated by the U.S. EPA under Section 211K of the Clean Air Act. Oxygenated Gasoline. Gasoline formulated for use in motor vehicles that has oxygen content of 1.8 percent or higher, by weight. Includes gasohol. Other Finished Gasoline. Motor Gasoline not included in the oxygenated or reformulated gasoline categories.

Motor Gasoline, Finished Gasohol - A blend of finished motor gasoline (leaded or unleaded) and alcohol (generally ethanol but sometimes methanol), limited to 10 percent by volume of alcohol.

Motor Gasoline, Finished Leaded - Contains more than 0.05 gram of lead per gallon or more than 0.005 gram of phosphorus per gallon. Premium and regular grades are included, depending on the octane rating. Includes leaded gasohol. Blend-stock is excluded until blending has been completed. Alcohol that is to be used in the blending of gasoline is excluded.

Motor Gasoline, Finished Unleaded - Contains not more than 0.05 gram of lead per gallon and not more than 0.005 gram of phosphorus per gallons. Premium and regular grades are included, depending on the octane rating. Includes unleaded gasohol. Blend- stock is excluded until blending has been completed. Alcohol that is to be used in the blending of gasohol is also excluded.

MTBE (Methyl tertiary butyl ether) (CH3)3C)CH - Ether intended for motor gasoline blending. (See definition for Oxygenates.)

Municipal Utility - It provides utility services owned and operated by a municipal government.

Natural Gas - A mixture of hydrocarbon compounds and small quantities of various nonhydrocarbons existing in the gaseous phase or in solution with crude oil in natural underground reservoirs at reservoir conditions. The principal hydrocarbons usually contained in the mixture are methane, ethane, propane, butanes, and pentanes. Typical nonhydrocarbon bases that may be present in reservoir natural gas are carbon dioxide, helium, hydrogen sulfide, and nitrogen. Under reservoir conditions, natural gas and the liquefiable portions thereof occur either in a single gaseous phase in the reservoir or in solution with crude oil and are not distinguishable at that time as separate substances. Natural Gas, based on the type of occurrence in the reservoir, is classified by two categories, as follows: Non-Associated Gas natural gas that is not in contact with significant quantities of crude oil in the reservoir. Associated/Dissolved Gas is the combined volume of natural gas that occurs in crude oil reservoirs either as free gas (associated) or as gas in solution with crude oil (dissolved). Associated gas is free natural gas, commonly known as gas cap gas, which overlies and is in contact with crude oil in the reservoir. Dissolved gas is natural gas that is in solution with crude oil in the reservoir at reservoir conditions. Statistical data pertaining to natural gas production and reserves are reported in units of 1,000,000 cubic feet (i.e., MMCF) at 14.73 pounds per square inch absolute and 60 degrees Fahrenheit for FRS purposes.

Natural Gas Liquids (NGL) - Natural gas liquids are those portions of reservoir gas which are liquefied at the surface in lease separators, field facilities, or gas processing plants. Natural gas liquids include but are not limited to the following: ethane, propane, butanes, pentanes, natural gasoline, and condensate.

Net Investment in Place - The sum of net property, plant, and equipment (PP&E) plus investment and advances to unconsolidated affiliates.

Non-branded Product - Any refined petroleum product that is not a branded product.

NOx - Nitrogen oxides or oxides of nitrogen that are a chief component of air pollution produced by fossil fuel burning.

Nuclear Fuel Operations - All nuclear fuel operations, excluding reactor and reactor component manufacturing or containment construction. Includes exploration and development; mining; milling; conversion; enrichment; fabrication; reprocessing; and spent fuel storage.

Offshore - That geographic area that lies seaward of the coastline. In general, the coastline is the line of ordinary low water along with that portion of the coast that is in direct contact with the open sea or the line marking the seaward limit of inland water. If a State agency uses a different basis for classifying onshore and offshore areas, the State classification should be used. (Cook Inlet in Alaska is classified as offshore.)

Oil Shale - A sedimentary rock containing kerogen, a solid organic material.

Operating Expenses - Segment expenses related both to revenue from sales to unaffiliated customers and revenue from inter-segment sales or transfers, excluding loss on disposition of property, plant, and equipment; interest expenses and financial charges; foreign currency translation effects; minority interest; and income taxes.

Operating Income - Operating revenues less operating expenses. Excludes items of other revenue and expense, such as equity in earnings of unconsolidated affiliates, dividends, interest income and expense, income taxes, extraordinary items, and cumulative effect of accounting changes.

Operating Revenues - Segment revenues from both sales to unaffiliated customers and inter-segment sales or transfers; any product and service similar to those sold to unaffiliated customers, excluding equity in earnings of unconsolidated affiliates; dividend and interest income; gain on disposition of property, plant, and equipment; and foreign currency translation effects.

Other Energy Operations - Energy operations not included in Petroleum or Coal. Other Energy includes nuclear, oil shale, tar sands, coal liquefaction and gasification, geothermal, solar, and other forms of non-conventional energy.

Outage - An interruption in service. Also referred to as a blackout.

Oxygenates - Any substance which, when added to gasoline, increases the amount of oxygen in that gasoline blend. Through a series of waivers and interpretive rules, the Environment Protection Agency (EPA) has determined the allowable 'limits' for oxygenates in unleaded gasoline. The 'Substantially Similar' Interpretive Rules (56 FR (February 11, 1991)) allows blends of aliphatic alcohol other than methanol and aliphatic ethers, provided the oxygen content does not exceed 2.7 percent by weight. The 'Substantially Similar' Interpretive Rules also provide for blends of methanol up to 0.3 percent by volume exclusive of other oxygenates, and butanol or alcohol of a higher molecular weight up to 2.75 percent by weight. Individual waiver pertaining to the use of oxygenates in unleaded gasoline have been issued by the EPA. They include: Fuel Ethanol. Blends of up to 10 percent by volume anhydrous ethanol (200 proof) (commonly referred to as the 'gasohol waiver'). Methanol. Blends of methanol and gasoline- grade tertiary butyl alcohol (GTBA) such that the total oxygen content does not exceed 3.5 percent by weight and the ratio of methanol to GTBA is less than or equal to 1. It is also specified that this blended fuel must meet American Society for Testing and Materials (ASTM) volatility specifications (commonly referred to as the 'ARCO' waiver). Blends of up to 5.0 percent by volume methanol with a minimum of 3.5 percent by volume co-solvent alcohol having a carbon number of 4 or less (i.e., ethanol, propanol, butanol, and/or GTBA). The total oxygen must not exceed 3.7 percent by weight, and the blend must meet ASTM volatility specifications as well as phase separation and purity specifications (commonly referred to as the 'DuPont' waiver). MTBE (Methyl tertiary butyl ether). Blends up to 15 percent by volume MTBE that must meet the ASTM D4814 specifications. Blenders must take precautions that the blends are not used as base gasoline for other oxygenated blends (commonly referred to as the 'Sun' waiver).

Peak Load - Also known as Peak Demand. Refers to the highest electrical demand during a particular time period.

Petrochemicals - Chemicals made from oil.

PP&E, Additions to - The current year's expenditures on property, plant, and equipment (PP&E). The amount is predicated upon each reporting company's accounting practice. That is, accounting practices with regard to capitalization of certain items may differ across companies, and therefore this figure in FRS will be a function of each reporting company's policy.

PP&E, Net - The original cost of property, plant, and equipment (PP&E), less accumulated depreciation.

Petroleum - Hydrocarbon mixtures broadly defined to include crude oil, lease condensate, natural gas, products of natural gas processing plants (plant products), refined products, and semi-finished products and blending materials.

Pipeline - A line of pipe with pumping machinery and other devices (valves, compressors, metering stations, etc.), for conveying a liquid or gas.

Pipelines, Rate Regulated - FRS establishes three pipeline segments: crude/liquid (raw materials); natural gas; and refined products. The pipelines included in these segments are all Federal or State rate-regulated pipeline operations, included in the reporting company's consolidated financial statements. At the reporting company's discretion, however, intrastate pipeline operations may be included in the U.S. Refining/ Marketing Segment if: (1) they comprise less than 5 percent of U.S. Refining/Marketing Segment net PP&E, revenues, and earnings in the aggregate; and (2) if the inclusion of such pipelines in the consolidated financial statements adds less than $100 million to the net PP&E reported for the U.S.

Refining/Market Segment. Power - Energy. Electricity for use as energy.

Power Plant - Central station generating facility that produces energy.

Power Pool - Interconnected utilities that supply electricity in the most economical and reliable way to meet their combined load requirement.

Primary Recovery - The crude oil or natural gas recovered by any method that may be employed to produce them where the fluid enters the well bore by the action of natural reservoir pressure (energy or gravity).

Primary Transportation - Conveyance of large shipments of petroleum raw materials and refined products usually by pipeline, barge, or ocean-going vessel. All crude oil transportation is primary, including the small amounts moved by truck. All refined product transportation by pipeline, barge, or ocean-going vessel is primary transportation.

Producing Property - A term often used in reference to a property, well, or mine that produces wasting natural resources. The term means a property that produces in paying quantities (that is, one for which proceeds from production exceed operating expenses).

Production, Natural Gas Liquids - Production of natural gas liquids is classified as follows: Contract Production. Natural gas liquids accruing to a company because of its ownership of liquids extraction facilities that it uses to extract liquids from gas belonging to others, thereby earning a portion of the resultant liquids. Leasehold Production. Natural gas liquids produced, extracted, and credited to a company's interest. Contract Reserves. Natural gas liquid reserves corresponding to the contract production defined above. Leasehold Reserves. Natural gas liquid reserves corresponding to the leasehold production defined above.

Production, Oil and Gas - The lifting of the oil and gas to the surface and gathering, treating, field processing (as in the case of processing gas to extract liquid hydrocarbons), and field storage. The production function typically terminates at the outlet valve on the lease or field production storage tank. If unusual physical or operational circumstances exist, it may be more appropriate to regard the production function as terminating at the first point at which oil, gas, or gas liquids are delivered to a main pipeline, a common carrier, a refinery, or a marine terminal. Gross Company-Operated Production. Total production from all company-operated properties, including all working and non-working interests. Net Working Interest Production. Total production accruing to the reporting company's working interests less royalty oil and volumes due others.

Production Costs - Costs incurred to operate and maintain wells and related equipment and facilities, including depreciation and applicable operating costs of support equipment and facilities and other costs of operating and maintaining those wells and related equipment and facilities. They become part of the cost of oil and gas produced. The following are examples of production costs (sometimes called lifting costs): … Costs of labor to operate the wells and related equipment and facilities. … Repair and maintenance costs. … The costs of materials, supplies, and fuel consumed and services utilized in operating the wells and related equipment and facilities. … The costs of property taxes and insurance applicable to proved properties and wells and related equipment and facilities. … The costs of severance taxes. … Depreciation, depletion, and amortization (DD&A) of capitalized acquisition, exploration, and development costs are not production costs but also become part of the cost of oil and gas produced along with production (lifting) costs identified above. … Production costs include the following sub-categories of costs: … Well operations and maintenance … Well work-overs … Operating fluid injection and improved recovery programs … Operating gas processing plants … Ad valorem taxes … Production or severance taxes … Other, including overhead.

Real-time Pricing - Instantaneous pricing of electricity based on the cost of the electricity available for use when the customer needs it.

Reliability - Electric system has two components including adequacy and security.

Renewable Energy - Resources that are regarded as practically inexhaustible.

Reregulation - Implementation of regulatory practices to be applied to the remaining regulated entities once restructuring of the vertically-integrated electric utility is complete.

Research and Development - Basic and applied research in the sciences and engineering and the design and development of prototypes and processes, excluding quality control, routine product testing, market research, sales promotion, sales service, research in the social sciences or psychology, and other non-technological activities or technical services.

Reserve, Change in - For FRS reporting, the following definitions should be used for changes in reserves. Revisions of Previous Estimates. Changes in previous estimates of proved reserves, either upward or downward, resulting from new information normally obtained from development drilling and production history or resulting from a change in economic factors. Revisions do not include changes in reserve estimates resulting from increases in proved acreage or from improved recovery techniques. Improved Recovery. Changes in reserve estimates resulting from application of improved recovery techniques shall be separately shown, if significant. If not significant, such changes shall be included in revisions of previous estimates. Purchases or Sales of Minerals-in-Place. Increase or decrease in the estimated quantity of reserves resulting from the purchase or sale of mineral rights in land with known proved reserves. Extensions, Discoveries, and Other Additions. Additions to an enterprise's proved reserves that result from: (1) extension of the proved acreage of previously discovered (old) reservoirs through additional drilling in periods subsequent to discovery and (2) discovery of new fields with proved reserves or of new reservoirs of proved reserves in old fields.

Reserves (Coal) - Coal reserve estimates comprising the demonstrated coal reserve base include only proved (measured) and probable (indicated). Proved (Measured) Reserves. Reserves or resources for which tonnage is computed from dimensions revealed in outcrops, trenches, workings, and drill holes and for which the grade is computed from the results of detailed sampling. The sites for inspection, sampling, and measurement are spaced so closely and the geologic character is so well defined that size, shape, and mineral content are well established. The computed tonnage and grade are judged to be accurate within limits which are stated, and no such limit is judged to be different from the computed tonnage or grade by more than 20 percent. Probable (Indicated) Reserves. Reserves or resources for which tonnage and grade are computed partly from specific measurements, samples, or production data and partly from projection for a reasonable distance on geologic evidence. The sites available are too widely or otherwise inappropriately spaced to permit the mineral bodies to be outlined completely or the grade established throughout.

Reserves, Net - Includes all proven reserves associated with the company's net working interests. (See definition for Working Interest.)

Reserves, Proved (Oil and Gas) - The estimated quantities of crude oil, natural g as, and natural gas liquids which geological and engineering data demonstrate wi th reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Reservoirs are considered prov ed if supported economically by one or more of the following: actual production; conclusive formation test; core analysis; and/or electric or other log interpre tations. The area of a reservoir considered proved includes: (1) portion delinea ted by drilling and defined by gas-oil and/or oil-water contacts, if any; and (2) the immediately adjoining portions not yet drilled, but which can be reasonably judged as economically productive on the basis of available geological and engineering data. In the absence of information on fluid contacts, the lowest known structural occurrence of hydrocarbons controls the lower proven limited of the reservoir. Volumes of oil and gas placed in underground storage are not to be considered proven reserves, but should be classified as inventory. Reserves that can be produced 'economically' through application of improved recovery techniques (e.g., fluid injection) are included in the 'proved' classification when successful testing by a pilot project, or the operation of an installed program in the reservoir, provides support for the engineering analysis on which the project or program was based. Estimates of 'proved' reserves do not include the following: (1) oil that may become available from known reservoirs but is classified separately as 'indicated additional reserves;' (2) crude oil, natural gas, and natural gas liquids, the recovery of which is subject to reasonable doubt because of uncertainty as to geology, reservoir characteristics, or economic factors; (3) crude oil, natural gas, and natural gas liquids that may occur in undrilled prospects; and (4) crude oil, natural gas, and natural gas liquids that may be recovered from oil shales, coal, gilsonite and other such sources. It is not necessary that production, gathering, or transportation facilities be installed or operative for a reservoir to be considered proved. For natural gas, an appropriate reduction in the reservoir gas volume is made to cover the removal of the liquefiable portions of the gas and the exclusion of non-hydrocarbon gases where they occur in sufficient quantity to render the gas unmarketable. If the liquefiable portions of the gas are not separately estimated, they need not be separately stated for FRS reporting purposes.

Reservoir - A porous and permeable underground formation containing an individual and separate accumulation of produce-able hydrocarbons (oil and/or gas) that is confined by impermeable rock or water barriers and is characterized by a single natural pressure system.

Residual Fuel Oil - The heavier oils that remain after the distillate fuel oils and lighter hydrocarbons are distilled away in refinery operations and that conform to ASTM Specifications D396 and 975. Included are No. 5, a residual fuel oil of medium viscosity; Navy Special, for use in steam-powered vessels in government service and in shore power plants; No. 6, which includes Bunker C fuel oil, and is used for commercial and industrial heating, electricity generation, and to power ships.

Retail Market - Market in which energy is sold directly to the end-user customer.

Royalty - A contractual arrangement providing a mineral interest giving the owner a right to a fractional share of production or proceeds. It does not contain rights and obligations of operating a mineral property, and that is normally free and clear of exploration, developmental, and operating costs, except production taxes.

Short Ton - A unit of weight that equals 2,000 pounds.

Stranded Assets - Assets that cannot be sold for some reason. Stranded costs exceed market prices.

Support Equipment and Facilities - These include, but are not limited to, seismic equipment, drilling equipment, construction and grading equipment, vehicles, repair shops, warehouses, supply points, camps, and division, district, or field offices.

Tangible Development Costs - Cost incurred during the development stage for access, mineral handling, and support facilities having a physical nature. In mining, such costs would include tracks, lighting equipment, ventilation equipment, other equipment installed in the mine to facilitate the extraction of minerals, and supporting facilities for housing and care of work forces. In the oil and gas industry, tangible development costs would include well equipment (such as casing, tubing, pumping equipment, and well heads), as well as field storage tanks and gathering systems.

Tar Sands - Naturally occurring bitumen-impregnated sands that yield mixtures of liquid hydrocarbon and that require further processing other than mechanical blending before becoming finished petroleum products.

Tariff - A regulatory-agency-approved document listing the terms and conditions, including a price schedule under which the utility services will be provided.

Time-of-Use Rates - Electric pricing based on the estimate cost of electricity during a specified time frame (e.g., peak, off-peak, and mid-peak).

Timing Differences - Differences between the periods in which transactions affect taxable income and the periods in which they enter into the determination of pretax accounting income. Timing differences originate in one period and reverse or 'turn around' in one or more subsequent periods. Some timing differences reduce income taxes that would otherwise be payable currently; others increase income taxes that would otherwise be payable currently.

Transfer Price - The monetary value assigned to products, services, or rights conveyed or exchanged between related parties, including those occurring between units of a consolidated entity.

Uncompleted Wells, Equipment, and Facilities Costs - The costs incurred to (1) drill and equip wells that are not yet completed, and (2) acquire or construct equipment and facilities that are not yet completed and installed.

Undeveloped Property - Refers to a mineral property on which development wells or mines have not been drilled or completed to a point that would permit the production of commercial quantities of mineral reserves.

Uranium Oxide - A yellow or brown powder produced from naturally occurring uranium minerals as a result of milling uranium ore or processing uranium-bearing solutions. Synonymous with 'yellow cake,' U3O8, or uranium concentrate.

Utility - A regulated entity that exhibits natural monopolistic characteristics. For electric industry restructuring, utility refers to the regulated, vertically integrated electric company. Transmission Utility refers to the regulated owner/operator of the transmission system only. Distribution Utility refers to the regulated owner/operator of the distribution system that serves retail customers.

Variable Air Volume System - A VAV System is a mechanical HVAC system capable of serving multiple zones. It maintains control over the temperature in a zone by controlling the amount of heated or cooled air supplied to the zone.

Ventilation - Process of supplying or removing air by mechanical or natural means to or from some type of enclosed space. The air may be treated or conditioned for comfort.

Verification Phase - Phase to determine ultimate compliance and actual return versus planned or expected return.

Volt - Unit of electromotive force. Amount of force required to drive a steady current of one ampere through a resistance of one ohm. current of one a

Well - A hole drilled in the earth for the purpose of (1) finding or producing crude oil or natural gas; or (2) providing services related to the production of crude oil or natural gas. Wells are classified as (1) oil wells; (2) gas wells; (3) dry holes; (4) stratigraphic test wells; or (5) service wells. The latter two types of wells are not counted for FRS reporting. Oil wells, gas wells, and dry holes are classified as exploratory wells or development wells. Exploratory wells are subclassified as (1) new-pool wildcats; (2) deeper-pool tests; (3) shallow-pool test; and (4) outpost (extension) tests. Well classifications reflect the status of wells after drilling has been completed. Completion. The term refers to the installation of permanent equipment for the production of oil or gas. Development Well. A well drilled within the proven area of an oil or gas reservoir to the depth of a stratigraphic horizon known to be productive. Dry Hole. An exploratory or development well found to be incapable of producing either oil or gas in sufficient quantities to justify completion as an oil or gas well. Exploratory Well. A well that is not a development well, a service well, nor a stratigraphic test as those items are defined elsewhere. Oil Well. A well completed for the production of crude oil from at least one oil zone or reservoir.

Wellhead Price - The value at the mouth of the well. In general, the wellhead price is considered to be the sales price obtainable from a third party in an arm's length transaction. Posted prices, requested prices, or prices as defined by lease agreements, contracts, or tax regulations should be used where applicable.

Working Interest - An interest in a mineral property that entitles the owner of that interest to all of a share of mineral production from the property, usually subject to a royalty. A working interest permits the owner to explore, develop, and operate the property. The working interest owner bears the costs of exploration, development, and operation of the property and, in return, is entitled to a share of the mineral production from the property or to a share of the proceeds therefrom. It may be assigned to another party in whole or in part, or it may be divided into other special property interests. Gross Working Interest. The reporting company's working interest plus the proportionate share of any basic royalty interest or overriding royalty interest related to the working interest. Net Working Interest. The reporting company's working interest not including any basic royalty or overriding royalty interests.

Watt - Unit of measure of electric power at a set point in time.

Watt-hour - One watt of power extended over a one-hour period. One thousandth of a kilowatt-hour.

Wholesale Power Market - The purchase and sale of electricity along with the ancillary services needed to maintain reliability and power quality at the transmission level, from generators to resellers who then sell to retail customers.