An ontology of observation and measurement is proposed, which models the relevant information processes independently of sensor technology. It is kept at a sufficiently general level to be widely applicable as well as compatible with a broad range of existing and evolving sensor and measurement standards. Its primary purpose is to serve as an extensible backbone for standards in the emerging semantic sensor web. It also provides a foundation for semantic reference systems by grounding the semantics of observations, as generators of data. In its current state, it does not yet deal with resolution and uncertainty, nor does it specify the notion of a semantic datum formally, but it establishes the ontological basis for these as well as other extensions.