Oil and Gas Glossary: R Terms
12 oil and gas terms start with the letter R. Each one is defined below, in alphabetical order.
Ratification
The act of confirming. Ratification of an oil and gas lease means to confirm it’s existence and terms.
Recompletion
The completion for production of an existing well bore in another formation from that in which the well was previously completed.
Regulatory Agency
The body within each state that administers oil and gas policy set by state government. These bodies serve as the repository for public data related to oil and gas operations within the state.
Reserve Pit, Mud Pit
Pit used to collect spent drilling fluids, cutting, and wash water during drilling operations.
Reservoir
A porous, permeable sedimentary rock containing oil and gas.
Reservoir Engineering
The application of scientific and engineering principles to the production from a developed reservoir for maximum economic return.
Residue Gas
Gas remaining after processing and extraction of NGL.
Revenue Statement
The monthly statement sent by either the First Purchaser or the Operator to the interest holders within an oil or gas producing property. These statements detail production volumes and pricing for hydrocarbons that are produced and sold each month.
Royalty
Revenue generally received by a mineral owner from the production of oil or gas, free of costs (except taxes).
Royalty Interest
An interest in an oil and natural gas lease that gives the owner of the interest the right to receive a portion of the production from the leased acreage (or of the proceeds of the sale thereof), but generally does not require the owner to pay any portion of the costs of drilling or operating the wells on the leased acreage.
Royalty Percentage
Percentage of gross or net production that is paid to the mineral owner. Usually described as a fraction (1/8th, 3/16th, 1/6th, 1/5th, 1/4, etc.)
Royalty Statement
Account of finances that details a wells production and prices received. Mineral Owners receive these monthly or as revenue crosses certain thresholds depending on the state and operator.