05.07.2009

In the energy sector this is the principle of renegotiating the price established in a long term contract, such as the price of natural gas, due to changing market conditions. A price re-opener can be a potential clause in the original contract or a move by one party if he perceives that market conditions have changed drastically. A main disadvantage of price re-openers is that they are difficult to negotiate and may leave one party that needs long term supply out of the contract if the new terms cannot be agreed after for instance the 5 year price re-opener term has elapsed.

The total length of a term of a supply contract between a buyer of gas and seller.

The depth in a drilling well at which the drilling contractor receives a lump-sum payment for reaching a particular milestone. The contract depth is specified in a legal agreement between the operator, who pays for the well, and the drilling contractor, who owns and operates the drilling rig. Contract depth may be the final or total depth (TD) of the well, an intermediate point in the well or another milestone, such as running well-logging tools to the bottom of the hole.

A line on a map that traces locations where the value of a variable is constant. For example, contour lines of elevation trace points of equal elevation across the map. All points on the “ten foot” contour line are ten feet above sea level

A petroleum accumulation that is pervasive throughout a large area and which is not significantly affected by hydrodynamic influences. Examples of such deposits include “basin-center” gas and gas hydrate accumulations