259.050. Definitions.
Definitions.
259.050. Unless the context otherwise requires, thefollowing words mean:
(1) "Certificate of clearance" means a permit prescribed bythe council for the transportation or the delivery of oil or gasor product and issued or registered in accordance with the rule,regulation, or order requiring such permit;
(2) "Council", the state oil and gas council established bysection 259.010;
(3) "Field", the general area underlaid by one or morepools;
(4) "Gas", all natural gas and all other fluid hydrocarbonswhich are produced at the wellhead and not hereinbelow defined asoil;
(5) "Illegal gas" means gas which has been produced from anywell within this state in excess of the quantity permitted by anyrule, regulation, or order of the council;
(6) "Illegal oil" means oil which has been produced from anywell within the state in excess of the quantity permitted by anyrule, regulation, or order of the council;
(7) "Illegal product" means any product derived in whole orin part from illegal oil or illegal gas;
(8) "Noncommercial gas well", a gas well drilled for thesole purpose of furnishing gas for private domestic consumptionby the owner and not for resale or trade;
(9) "Oil", crude petroleum oil and other hydrocarbonsregardless of gravity which are produced at the wellhead inliquid form and the liquid hydrocarbons known as distillate orcondensate recovered or extracted from gas, other than gasproduced in association with oil and commonly known as casingheadgas;
(10) "Owner", the person who has the right to drill into andproduce from a pool and to appropriate the oil or gas he producedtherefrom either for himself or others or for himself and others;
(11) "Pool", an underground reservoir containing a commonaccumulation of oil or gas or both; each zone of a structurewhich is completely separated from any other zone in the samestructure is a "pool", as that term is used in this chapter;
(12) "Producer", the owner of a well or wells capable ofproducing oil or gas or both;
(13) "Product", any commodity made from oil or gas andincludes refined crude oil, crude tops, topped crude, processedcrude, 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 or moreliquid products or by-products derived from oil or gas, andblends or mixtures of two or more liquid products or by-productsderived from oil or gas whether hereinabove enumerated or not;
(14) "Reasonable market demand" means the demand for oil orgas for reasonable current requirements for consumption and usewithin and without the state, together with such quantities asare reasonably necessary for building up or maintainingreasonable working stocks and reasonable reserves of oil or gasor product;
(15) "Waste" means and includes:
(a) Physical waste, as that term is generally understood inthe oil and gas industry, but not including unavoidable oraccidental waste;
(b) The inefficient, excessive, or improper use of, or theunnecessary dissipation of, reservoir energy;
(c) The location, spacing, drilling, equipping, operating,or producing of any oil or gas well or wells in a manner whichcauses, or tends to cause, reduction in the quantity of oil orgas ultimately recoverable from a pool under prudent and properoperations, or which causes or tends to cause unnecessary orexcessive surface loss or destruction of oil or gas;
(d) The inefficient storing of oil;
(e) The production of oil or gas in excess of transportationor marketing facilities or in excess of reasonable market demand;and
(f) Through negligence, the unnecessary or excessive surfaceloss or destruction of oil or gas resulting from evaporation,seepage, leakage or deliberate combustion;
(16) "Well", any hole drilled in the earth for or inconnection with the exploration, discovery, or recovery of oil orgas, or for or in connection with the underground storage of gasin natural formation, or for or in connection with the disposalof salt water, nonusable gas or other waste accompanying theproduction of oil or gas.
(L. 1965 2d Ex. Sess. p. 917 § 5, A.L. 1972 H.B. 1176, A.L. 1987 S.B. 353)