Reference / Reviewed 14 September 2026

Terms, with context

Eight terms used in decommissioning decisions. What each means, what it does not establish, and where to read further.

Asset retirement obligation (ARO)

An obligation associated with retiring an asset, such as decommissioning equipment or restoring a site. Engineering establishes the scope, method, timing and cost inputs that can inform the financial provision.

The engineering estimate and accounting provision are different. Recognition and measurement depend on the applicable accounting requirements and the entity’s circumstances.

Asset Data Integrity Index (ADII)

The decomm.ai name for examining documentation integrity across defined evidence domains, with source records and gaps kept visible.

The fixed sample scores on this website illustrate the interface. They do not calculate a project’s ADII, estimate accuracy or financial provision, and are not evidence of a validated assessment.

Safety and environmental critical elements (SECE)

Parts of an offshore installation, including relevant software, whose failure could make a substantial contribution to a major accident, or whose role is to prevent that accident or reduce its consequences.

This explanation follows UK offshore terminology. Identify the applicable jurisdiction and asset-specific critical elements; a documentation score does not verify their condition or performance.

Naturally occurring radioactive material (NORM)

Material containing radionuclides of natural origin. Oil and gas production can bring these materials to the surface or concentrate them in scale, sludge, produced water and equipment.

Presence and activity vary. The term alone does not establish a waste classification, exposure level or acceptable disposal route.

Plugging and abandonment (P&A)

The permanent plugging of a well to prevent the escape of well fluids. The work needs a well-specific design, verification and the approvals required by the applicable regime.

Well abandonment does not itself demonstrate removal of the wellhead, pipelines or facilities, or completion of the title-surrender process.

Best practicable environmental option (BPEO)

The option identified through a systematic comparison and consultation as giving the greatest environmental benefit, or least environmental harm, at an acceptable cost for the stated objectives over the short and long term.

Use the assessment method required for the actual jurisdiction and scope. BPEO is not a universal approval test or a substitute for a regulator’s decision.

Relinquishment and title surrender

The formal process of giving up a title or authorisation. For a Commonwealth offshore petroleum permit, lease or licence, a titleholder applies through NOPTA for Joint Authority consent to surrender.

Physical removal or an accepted environment plan does not automatically surrender the title. Confirm the separate consent, evidence and continuing-obligation requirements for the actual title.

Class 4 estimate

An early study estimate classification determined by the maturity of project definition under the relevant estimating practice. It describes the basis available to prepare the estimate, rather than certifying a particular result.

Class alone does not establish accuracy. Explain the applicable classification practice, scope, estimating method and risk-based uncertainty assessment; a documentation score cannot automatically upgrade an estimate. The linked practice concerns engineering, procurement and construction in the process industries; confirm its applicability to the decommissioning scope.

Need to connect the terminology to an actual scope?

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