For the purposes of this Chapter the document defines key terms. "Undertaking active in the extractive industry" means an undertaking engaged in exploration, prospection, discovery, development and extraction of minerals, oil, natural gas deposits or other materials within the economic activities listed in Section B, Divisions 05 to 08 of Annex I to Regulation (EC) No 1893/2006 (NACE Rev.2). "Undertaking active in the logging of primary forests" means an undertaking with activities in Section A, Division 02, Group 02.2 of that Annex in primary forests. "Government" means any national, regional or local authority of a Member State or of a third country and includes a department, agency or controlled undertaking as set out in Article 22(1)–(6).

"Project" means operational activities governed by a single contract, licence, lease, concession or similar legal agreement that form the basis for payment liabilities with a government; multiple substantially interconnected agreements are treated as one project. "Payment" means amounts paid, in money or in kind, for the activities described above and includes: production entitlements; taxes on income, production or profits (excluding consumption taxes such as VAT, personal income tax or sales taxes); royalties; dividends; signature, discovery and production bonuses; licence, rental and entry fees and other considerations for licences or concessions; and payments for infrastructure improvements.