Natural Gas: A Comprehensive Guide to Its Legal Definition

Definition & Meaning

Natural gas is a type of fuel that can be found in its pure form or as a mixture with other gases. It includes various components such as methane and ethane, as well as liquefied natural gas and natural gas liquids. Additionally, it encompasses synthetic gas derived from natural gas liquids or petroleum. However, not all gases are classified as natural gas; certain by-products, unmarketable gas, and specific types of gas produced from certain geological formations are excluded from this definition.

Table of content

Real-world examples

Here are a couple of examples of abatement:

(Hypothetical example) A company produces natural gas from a well that meets the maximum efficient production rate. This gas is then sold to a local utility company for distribution to residential customers.

(Hypothetical example) A manufacturing facility uses a mixture of natural gas and synthetic gas derived from alternate fuels to comply with environmental regulations while ensuring a reliable energy supply.

State-by-state differences

State Key Differences
California Strict regulations on emissions and production from natural gas.
Texas Less stringent regulations, with a focus on production and marketability.
New York Restrictions on fracking and stringent environmental assessments.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Natural Gas A fossil fuel consisting primarily of methane. Includes various natural and synthetic components.
Synthetic Gas Gas produced from non-natural sources, like coal. Does not include natural gas components.
Liquefied Natural Gas (LNG) Natural gas that has been cooled to a liquid state. Specifically refers to the liquid form of natural gas.

What to do if this term applies to you

If you are involved in the production, sale, or use of natural gas, it is essential to understand the relevant regulations and compliance requirements. Consider using US Legal Forms for templates related to contracts, leases, or regulatory filings. If your situation is complex, consulting with a legal professional may be advisable to ensure compliance and protect your interests.

Quick facts

  • Natural gas is primarily composed of methane.
  • It can be used for heating, electricity generation, and as a fuel for vehicles.
  • Natural gas production is subject to federal and state regulations.
  • Exclusions apply to certain types of gas and production methods.

Key takeaways

Frequently asked questions

Natural gas is commonly used for heating, electricity generation, and as a fuel for vehicles.