The following definitions are, unless the context otherwise requires, applicable to chapter 79.14 RCW and these rules and regulations.

(1) "Aquatic lands" means all state-owned tidelands, shorelands, harbor areas, and the beds of navigable waters.

(2) "Associated substances" means all gaseous or liquid substances produced in association with oil or gas but shall not include coal, lignite, oilshale, similar solid hydrocarbons, minerals, water, steam or any geothermal resources.

(3) "Base lease" means the first issued lease on a tract of land prior to any assignments of the lease or renewals.

(4) "Commissioner" means the commissioner of public lands.

(5) "Completion" means the well is capable of producing oil or gas through wellhead equipment from the producing zone after the production string has been run. A dry hole shall be considered completed when the requirements for plugging and abandonment provided for in chapter 344-12 WAC have been complied with.

(6) "Continuous" as in "production in continuous paying quantities" means extracting oil and gas from the earth without cessation for a period of more than ninety days.

(7) "Department" means the department of natural resources.

(8) "Development" means work which generally occurs after exploration and furthers bringing in production including defining the extent of the oil and gas resource and construction of support facilities.

(9) "Drilling" means the drilling of a well and the activities associated therewith of permitting, staking, site preparation, testing, deepening or redrilling of the well.

(10) "Drill pads" means the location and surrounding area necessary to position a drill rig and support equipment.

(11) "Exploration" means the investigation of oil and gas resources by any geological, geophysical, geochemical or other suitable means.

(12) "Good standing" means in full compliance with all terms and conditions of the lease contract.

(13) "Hydrocarbon" means a compound containing only the two elements carbon and hydrogen.

(14) "Improvements" means anything considered a fixture in law placed upon or attached to the lease premises that has changed the value of the land or any change in the previous conditions of the fixtures that changes the value of the land.

(15) "Initial term" means the first period of time authorized under a lease or the exploration period of the lease.

(16) "In situ" means a process of in-place conversion of an energy resource in the ground by a thermal or liquifaction process in order to simplify extraction of the resource.

(17) "Lands" or "land" means both the surface and subsurface components of the lease or contract premises.

(18) "Lease premises" means public land including retained mineral rights held under an oil and gas lease.

(19) "Lessee" means any person holding an oil and gas lease.

(20) "Oil and gas" means all hydrocarbons which are present in the earth in a gaseous or liquid form and produced therefrom. It shall not include coal, lignite, oilshale, or similar solid hydrocarbons.

(21) "Paying quantities" means extraction of oil and/or gas in a sufficient amount to generate oil and gas production royalties to the state.

(22) "Person" means any natural person, corporation, association, organization, partnership, receiver, trustee, executor, administrator, guardian, fiduciary, or representative of any kind.

(23) "Plug and abandon" means to place permanent seals in well casings or drill holes in the manner as provided by chapter 344-12 WAC and applicable regulations and in a way and at such intervals as are necessary to prevent future contamination; to remove all equipment from the site and rehabilitate the surface to its former state or usage as prescribed by the department.

(24) "Posted field price" means the announced price at which a crude oil or gas purchaser will buy the oil or gas of specified quality from a field.

(25) "Preliminary investigation" means geological, geophysical or geochemical investigation.

(26) "Production" means extracting oil and/or gas in paying quantities.

(27) "Public auction" means competitive lease offers either by oral or sealed bidding by qualified bidders or a combination of both.

(28) "Public lands" means lands and areas belonging to or held in trust by the state including state-owned aquatic lands and lands of every kind and nature including mineral rights reserved to the state, the trust or the department.

(29) "Reclamation" means the reasonable protection and rehabilitation of all land subject to disruption from exploration, development, and production of an oil and gas resource.

(30) "Refining" means improving the physical or chemical properties of oil or gas.

(31) "Shut-in" means to adequately cap or seal a well to control the contained oil and/or gas for an interim period.

(32) "String of tools" means a cable or rotary drill rig.

(33) "Surface rights" means full fee ownership of the surface of the property and the resources on and attached thereto, not including the mineral estate.

(34) "Undivided interest" means a total assignment of the lease to one person or an assignment which causes the total lease rights to be held jointly by more than one person including but not limited to joint or common tenancy and community property.

(35) "Waste" means the physical loss of a subsurface resource through damage, escape or inefficient extraction and as defined in chapter 78.52 RCW.

(36) "Well" means any bored, drilled, or redrilled hole for the exploration or production of oil, gas, and other hydrocarbon substances.