The glossary of terms is arranged alphabetically. Click on the
letters below to find terms beginning with that letter.
Degree Days: One way to calculate heating or
cooling value is by adding a particular day's high and low
temperatures, dividing by two, and subtracting that average
temperature from a base level (the National Weather Service uses
65 degrees for heating).
Dekatherm (Dth): A unit of heating value equal
to 10 Therms or one million Btu's (1 MMBtu). Very roughly, 1 Mcf
= 1 MMBtu = 1 Dth (or dt).
Delivery Point: For a pipeline, the delivery
point is where sales or transportation gas exits the system. For
a producer it can be the point where gas goes into the pipeline,
and would be synonymous with the pipeline's "receipt point."
Sometimes these are called the delivery point and the redelivery
Demand Charge: The portion of a gas or
transportation charge that reflects a customer's contract
requirements. Usually a set monthly fee, based on contract
Derivative: A financial instrument that derives
its value from an underlying security.
Displacement: The method by which equivalent
volumes of gas are delivered from one point on a pipeline's
system to another point without a continuous flow of molecules
from the first point to the second. Backhauls are one form of
Downstream Pipeline: A pipeline closer to the
market as opposed to an upstream pipeline, which is closer to
the production area.