Glossary

This glossary defines the key terms you will encounter while using AEGIS. These definitions are written in plain language for compliance professionals, operators, and anyone working with the platform.

A

API Number

A 14-digit unique identifier assigned to every wellbore drilled in the United States. The format is SS-CCC-NNNNN-XX, where SS is the state code (42 for Texas), CCC is the county code, NNNNN is the well number, and XX is the directional sidetrack code. This number follows the well for its entire lifecycle and is used across all regulatory filings.

C

CO2e

Carbon dioxide equivalent. A standard metric used to compare the climate impact of different greenhouse gases. For example, methane is approximately 28 times more potent than carbon dioxide as a greenhouse gas, so 1 ton of methane equals 28 tons of CO2e. AEGIS uses CO2e when calculating the emissions impact of flaring and venting activities.

Compliance Matrix

The central view in AEGIS that shows the compliance status of every entity (well, lease, facility) across all regulatory domains (Rule 37, Rule 32, Form PR, Flaring). Each cell in the matrix is color-coded: green means compliant, amber means action is needed, red means overdue, grey means not applicable, and blue means a filing is in review.

D

Disposition Code

Codes used by the RRC on the monthly Production Report (Form PR) to indicate how natural gas was handled. The two most important codes are Code 10 (gas was flared, meaning burned) and Code 11 (gas was vented, meaning released unburned into the atmosphere). Accurate reporting of disposition codes is critical for regulatory compliance. (RRC)

E

EPA OOOOb/c

Federal regulations issued by the US Environmental Protection Agency that set methane emission standards for oil and gas operations. OOOOb applies to new and modified sources after November 15, 2021. OOOOc applies retroactively to existing sources. These rules set limits on how much methane can be released from oil and gas equipment and operations, including flaring. (EPA)

F

Field

A geographic area defined by the RRC that contains one or more underground formations producing oil or gas. Fields often have their own spacing and density rules that override statewide defaults. For example, the Spraberry (Trend Area) field has different well spacing requirements than the statewide Rule 37 standard. (RRC)

Flaring

The controlled burning of natural gas at a well site or processing facility. Flaring occurs when gas cannot be economically captured, processed, or transported to market — typically because pipeline infrastructure is not yet available. While flaring is preferable to venting (since burning converts methane to less harmful CO2), it still requires authorization from the RRC under Rule 32.

Form PR

The Monthly Production Report filed with the RRC by every operator in Texas. It reports oil and gas production volumes, gas disposition (sold, used on lease, flared, vented), and other operational data. Form PR is due by the 15th of each month for the prior month’s production. (RRC)

Form R-32

The application form filed with the RRC to request an exception to Statewide Rule 32, allowing an operator to flare or vent natural gas. The R-32 specifies the volume and duration of flaring requested, the reason gas cannot be captured, and any plans for future gas capture infrastructure. (RRC)

Form W-1

The Application for a Permit to Drill, Recomplete, or Re-Enter filed with the RRC. This is the primary drilling permit application in Texas. When the proposed well location requires a spacing exception (Rule 37), the W-1 includes additional documentation such as a good cause statement and offset well notifications. (RRC)

G

GHGRP Subpart W

The Greenhouse Gas Reporting Program, Subpart W is an EPA regulation that requires large petroleum and natural gas facilities to report their annual greenhouse gas emissions. Facilities that emit 25,000 metric tons or more of CO2e per year must report. Subpart W covers emissions from equipment leaks, venting, flaring, and other sources. (EPA)

Good Cause

The legal justification that an operator must provide when requesting a Rule 37 spacing exception. Good cause typically includes technical arguments (geological necessity, drainage prevention, efficient reservoir development) and evidence that the proposed well will not harm adjacent operators. The quality of the good cause narrative is a major factor in whether the RRC grants the exception. (RRC)

H

HITL

Human-in-the-Loop. A mandatory review step built into AEGIS that requires a human reviewer to approve any regulatory filing before it is submitted. AEGIS AI agents can prepare filings, run calculations, and draft documents, but they never submit anything to the RRC without explicit human approval. This is a core safety feature of the platform.

L

Lease

A legal agreement between a mineral rights owner and an operator that grants the right to explore for and produce oil and gas on a specific tract of land. In regulatory terms, a lease defines the geographic boundary within which an operator has production rights. Well spacing is measured relative to lease lines. (RRC)

O

Offset Well

A well on an adjacent lease or tract that may be affected by proposed drilling operations. When filing a Rule 37 spacing exception, the applicant must notify the operators of all offset wells within the regulatory distance. Offset operators have the right to protest the exception at a hearing before the RRC. (RRC)

Operator

The company responsible for the day-to-day operation of a well, lease, or facility. The operator is the entity that files permits, production reports, and exception applications with the RRC. An operator is identified by a unique RRC operator number. (RRC)

P

Permit

An authorization from the RRC to perform a specific activity, such as drilling a new well (Form W-1), flaring gas (Form R-32), or operating a pipeline. Permits have conditions, deadlines, and expiration dates that must be tracked for ongoing compliance. (RRC)

R

RRC

The Railroad Commission of Texas — the state agency that regulates the oil, gas, and mining industries in Texas. Despite its name, the RRC no longer regulates railroads. It oversees drilling permits, production reporting, well spacing, flaring authorizations, and environmental compliance for oil and gas operations throughout the state. (RRC)

Rule 32

Statewide Rule 32 (16 TAC 3.32) governs the flaring and venting of natural gas in Texas. It requires operators to obtain authorization before flaring or venting gas, with an initial exception period of up to 180 days. Rule 32 also sets requirements for gas capture infrastructure and reporting. See Rule 32 Agent for how AEGIS assists with Rule 32 filings. (RRC)

Rule 37

Statewide Rule 37 (16 TAC 3.37) establishes minimum spacing distances for oil and gas wells in Texas. The standard distances are 467 feet between wells and 1,200 feet from lease lines (based on a 40-acre proration unit). Operators who need to drill closer than these distances must file a spacing exception with the RRC. See Rule 37 Agent for how AEGIS assists with Rule 37 filings. (RRC)

S

SCADA

Supervisory Control and Data Acquisition. A system of hardware and software used to monitor and control field operations in real time. SCADA systems collect data from sensors at wells, pipelines, and facilities — including flow rates, pressures, temperatures, and equipment status. In AEGIS, SCADA data can feed into flaring volume tracking and production monitoring.

Spacing Exception

Regulatory approval from the RRC to drill a well closer than the standard minimum distances to lease lines or other wells. An operator must demonstrate “good cause” for the exception and notify all affected offset operators. Spacing exceptions are filed under Rule 37 using the Form W-1 application. (RRC)

V

Venting

The release of unburned natural gas directly into the atmosphere. Venting is tracked separately from flaring on Form PR (Disposition Code 11) and is subject to stricter regulatory scrutiny because methane released through venting is a potent greenhouse gas. EPA OOOOb/c regulations specifically target reductions in venting from oil and gas operations.