(a) “Critical well” means a well within:

(b) “Rework” means any operation subsequent to drilling that involves deepening, redrilling, plugging, or permanently altering in any manner the casing of a well or its function.

(c) “New pool” means, for the purpose of this subchapter, a pool discovered on or after January 1, 1974.

(d) “Directional survey” means a well survey that determines the deviation of the hole in degrees from the vertical and the direction (azimuth) and amount of horizontal deviation of the hole from the surface location.

(e) “Drift-only survey” means a well survey that determines the deviation of the hole in degrees from the vertical.

(f) “Operations” means any one or all of the activities of an operator covered by Division 3 of the Public Resources Code.

(g) “Onshore well” means a well located on lands that are not submerged under ocean waters or inland bays during mean high tide.

Note: Wells directionally drilled offshore from onshore locations shall fall within the scope of the Onshore Regulations and wells directionally drilled onshore from offshore locations shall fall within the scope of the Offshore Regulations (Subchapter 1.1).

(h) “Ultimate economic recovery” means the maximum physical amount of a substance, such as oil or gas, that can be recovered without economic loss.

(i) “Economic loss” means the loss that occurs when the lifetime discounted revenue after current dollar operating costs, including royalties and ad valorem, severance, and excise taxes, becomes less than the initial drilling and completion costs. The discount rate shall be equal to current prime lending rates plus two percent.