Chapter 522 — Geothermal
Resources
2011 EDITION
GEOTHERMAL RESOURCES
MINERAL RESOURCES
GENERAL PROVISIONS
522.005 Definitions
522.015 Policy
522.019 Injection
of geothermal fluids; rules; water quality permit
522.025 Application
522.035 Ownership
rights
522.045 Decommissioned
well; jurisdiction
PROSPECT WELLS
522.055 Permit;
application; fees
522.065 Circulation
of application to state agencies; suggested conditions to permit; time limit
for permit action
522.075 Bond
or security; conditions; cancellation
522.080 Operator
liability
522.085 Report
certifying completion of decommissioning plan
GEOTHERMAL WELLS
522.115 Permit;
application; fees
522.125 Circulation
of application to state agencies; suggested conditions to permit
522.135 Permit;
time limit for action; grounds for issuance; conditions; fees
522.145 Bond
or security; conditions; cancellation
522.155 Liability
for failure to protect ground water and surface water; rules
522.165 Request
for permit modification; fee
522.175 Plugging
and decommissioning; rules
522.195 Monthly
production statement; rules
522.205 Notice
by prospective operator of transfer or purchase of well; application; fee;
notice by buyer of land of transfer or purchase; rules
522.215 Suspension
of drilling or operation; application; terms; extension; presumption of
abandonment; unlawful abandonment; notice; proceedings against operator
522.225 Notice
of intent to plug and decommission
522.245 Department
approval of plugging and decommissioning; report by operator; effect of failure
to comply; proceedings against operator
522.255 Resolution
of conflicts between geothermal and water uses
ADMINISTRATION
522.275 Administration
by State Geologist
522.305 Rules
522.315 Final
order of department; delivery to operator
522.325 Compliance
with final order; appeal
WELL RECORDS
522.355 Records
of well; contents; drill cutting and core samples
522.365 Filing
record with department; exemption from disclosure
UNITIZATION OF GEOTHERMAL RESOURCE AREA
522.405 Unitization;
development of unit agreement; rules
522.415 Unit
operation plan
522.425 Provisions
in rule or order requiring unit operation
522.435 Rule,
order to supersede previous board action
522.445 Condition
to effectiveness of unitization plan and unit agreement
522.455 Rehearing
on rule or order; judicial review
522.465 Appointment
of unit operator
522.475 Board
review of disputes over unit operation; appeal
522.485 Amendment
of unitization plan
522.495 Presumptions
regarding conduct of operation
522.505 Unauthorized
operation in unit area prohibited; exemption
522.515 When
agreement or plan held not to violate state securities or trade law
522.525 Land
subject to board authority; federal lands
522.535 Fees;
rules
522.545 Rulemaking
authority
ENFORCEMENT
522.810 Suits
to enjoin violations
522.815 Rules
by board; scope; adoption; notice
PROHIBITED ACTS
522.910 Aiding
in violations prohibited
522.915 False
entries, omissions, destruction or removal of records or reports
PENALTIES
522.990 Penalties
GENERAL PROVISIONS
522.005 Definitions.
As used in this chapter, unless the context requires otherwise:
(1)
“Board” means the governing board of the State Department of Geology and
Mineral Industries.
(2)
“By-product” means any mineral or minerals, exclusive of helium or of oil,
hydrocarbon gas or other hydrocarbon substances, that are found in solution or
in association with geothermal resources and that have a value of less than 75
percent of the value of the geothermal resource or are not, because of
quantity, quality, or technical difficulties in extraction and production, of
sufficient value to warrant extraction and production by themselves.
(3)
“Completed geothermal well” means a well producing geothermal resources for
which the operator has received the department’s written assurance that the
manner of drilling of and producing geothermal resources from the well are
satisfactory.
(4)
“Cooperative agreement” means an agreement or plan of development and operation
for the production or utilization of geothermal resources in which separate
ownership units independently operate without allocation of production.
(5)
“Correlative rights” means the right of each owner in a geothermal area to
obtain that owner’s just and equitable share of the underlying geothermal
resource, or an economic equivalent of that share of the resource, produced in
a manner and in an amount that does not injure the reservoir to the detriment
of others.
(6)
“Department” means the State Department of Geology and Mineral Industries.
(7)
“Drilling” includes drilling, redrilling and deepening of a geothermal well.
(8)
“Enhanced recovery” means the increased recovery from a reservoir achieved by
artificial means or by the application of energy extrinsic to the reservoir.
The artificial means include, but are not limited to, reinjection of hot brine,
fluid or water into a reservoir.
(9)
“Geothermal area” means any parcel of land that is, or reasonably appears to
be, underlaid by geothermal resources.
(10)
“Geothermal reinjection well” means any well or converted well constructed to
dispose of geothermal fluids derived from geothermal resources into an
underground reservoir.
(11)
“Geothermal resources” means the natural heat of the earth, the energy, in
whatever form, below the surface of the earth present in, resulting from, or
created by, or that may be extracted from, the natural heat, and all minerals
in solution or other products obtained from naturally heated fluids, brines,
associated gases, and steam, in whatever form, found below the surface of the
earth, exclusive of helium or of oil, hydrocarbon gas or other hydrocarbon
substances, but including, specifically:
(a)
All products of geothermal processes, including indigenous steam, hot water and
hot brines;
(b)
Steam and other gases, hot water and hot brines resulting from water, gas, or
other fluids artificially introduced into geothermal formations;
(c)
Heat or other associated energy found in geothermal formations; and
(d)
Any by-product derived from them.
(12)
“Geothermal well” includes any excavation made for producing geothermal
resources and any geothermal reinjection well.
(13)
“Land” means both surface and mineral rights.
(14)
“Operator” means the person:
(a)
Who possesses the legal right to drill a geothermal well;
(b)
Who has obtained a drilling permit pursuant to ORS 522.135; or
(c)
Who possesses the legal right to operate a completed geothermal well or who has
been granted the authority to operate the well by that person.
(15)
“Prospect well” includes any well drilled as a geophysical test well, seismic
shot hole, mineral exploration drilling, core drilling or temperature gradient
test well and drilled in prospecting for geothermal resources. “Prospect well”
does not include a geothermal well.
(16)
“Reservoir” means an aquifer or combination of aquifers or zones containing a
common geothermal or ground water resource. “Reservoir” includes, but is not
limited to, a hot dry rock conductive system.
(17)
“Royalty interest” means a right or interest in geothermal resources produced
from land or in the proceeds of the first sale of those resources.
(18)
“Unit agreement” means an agreement or plan of development and operation
developed under the provisions of ORS 273.775, 308A.050 to 308A.128, 522.015,
522.405 to 522.545, 522.815 and 522.990 and this section for the production or
use of geothermal resources in separately owned interests as a single
consolidated unit and that provides for the allocation of costs and benefits.
(19)
“Unit area” means the area described in a unit agreement that constitutes the
land subject to development under the agreement.
(20)
“Unit operator” means the person designated in the unit agreement to manage and
conduct the operation involving unitized land.
(21)
“Unit production” means all geothermal resources produced from a unit area from
the effective date of a unit agreement approved by the board under ORS 522.405.
(22)
“Waste” means:
(a)
Any physical waste, including, but not limited to, underground waste resulting
from the inefficient, excessive or improper use or dissipation of reservoir
energy or resulting from the location, spacing, drilling, equipping, operation
or production of a geothermal resource well in such a manner that reduces or
tends to reduce the ultimate economic recovery of the geothermal resources
within a reservoir; and
(b)
Surface waste resulting from the inefficient storage of geothermal resources
and the location, spacing, drilling, equipping, operation or production of a
geothermal resource well in such a manner that causes or tends to cause the
unnecessary or excessive surface loss or destruction of geothermal resources
released from a reservoir.
(23)
“Working interest” means an interest in geothermal resources or in land
containing geothermal resources that is held under a lease, operating
agreement, fee title or otherwise and under which, except as otherwise provided
in a unit or cooperative agreement, the owner of the interest has the right to
explore for, develop, produce or utilize the resources. “Working interest” does
not include a right delegated to a unit operator as such by a unit agreement. [1975
c.552 §3; 1979 c.163 §1; 1981 c.588 §3; 1981 c.694 §4; 1999 c.314 §74; 2005
c.22 §375; 2009 c.794 §1]
522.010 [1971
c.776 §2; 1973 c.388 §1; repealed by 1975 c.552 §55]
522.015 Policy.
(1) The Legislative Assembly hereby finds and declares that:
(a)
The people of the State of Oregon have a direct and primary interest in the
development of geothermal resources situated in this state.
(b)
The State of Oregon, through the State Department of Geology and Mineral
Industries, shall control the drilling, redrilling and deepening of wells for
the discovery and production of geothermal resources so that such wells will be
constructed, operated, maintained, plugged and decommissioned in the manner
necessary to safeguard the life, health, property and welfare of the people of
this state, to safeguard the air, water and other natural resources of this
state, and to encourage the maximum economic recovery of geothermal resources
therefrom.
(2)
It is the policy of the Legislative Assembly that this chapter be administered:
(a)
To prevent damage to and waste of geothermal resources;
(b)
To prevent interference with or damage to waters used or to be used for
beneficial purposes that may result from improper drilling, operation,
maintenance, plugging or decommissioning of geothermal or prospect wells;
(c)
To supervise the drilling, operation, maintenance, plugging and decommissioning
of geothermal or prospect wells in a manner permitting the operator to utilize
all methods known to the industry for the purpose of increasing the ultimate
economic recovery of geothermal resources, that are suitable, and consistent
with protection of the air, water and other natural resources of the state; and
(d)
To provide for the development, management and production of geothermal
resources in a manner that minimizes state involvement, enhances resource
recovery, prevents waste, maximizes economic development and protects
correlative rights of the resource owners. [Formerly 522.050; 1981 c.588 §4;
2009 c.794 §2]
522.019 Injection of geothermal fluids; rules;
water quality permit. (1)(a) In order to accomplish
the policy of ORS 522.015 all geothermal fluids derived from geothermal
resources shall be reinjected into the same reservoir from which withdrawn
unless it is determined by the State Department of Geology and Mineral
Industries that these policies and the public interest require other disposal
of the fluids.
(b)
Subject to the determination in paragraph (a) of this subsection, injection
into other reservoirs or disposal by other means may be allowed by the
department in specific instances where it is shown that such action is
consistent with the policies cited in this section. Disposal by other means may
include any secondary use of geothermal fluid after the primary use of such
fluid for electrical power generation or for other direct application of the
heat or other associated energy contained in such fluids or for by-product
extraction. Secondary uses may include, but shall not be limited to, use of
condensate resulting from electrical power plant operations for plant-cooling
purposes, or use of such geothermal fluid for agricultural, commercial or
industrial purposes.
(2)
The State Department of Geology and Mineral Industries shall adopt rules
governing the disposal by reinjection or other means of geothermal fluids
derived from geothermal resources from wells of 250 or more degrees Fahrenheit
bottom hole temperature or wells 2,000 or more feet deep. The rules shall
include standards whereby contamination may be determined, construction
standards for reinjection wells, testing procedures for identifying aquifers,
standards and procedures for determining whether adjacent aquifers are being
degraded by the reinjection process, guidelines for conservation of the
resource, criteria for evaluating reservoirs or zones for geothermal fluid
disposal and requirements for prior approval of all geothermal fluid
reinjection proposals.
(3)
In addition to the permit required by ORS 522.115, an operator of a geothermal
well must obtain a water quality permit from the Department of Environmental
Quality under ORS 468B.050 or under rules authorized by ORS 468B.195 before
injection of any fluid, except well drilling fluids. Nothing in this chapter
limits the authority of the Department of Environmental Quality to regulate the
subsurface injection of fluids pursuant to ORS 468B.195, 468B.196 and 468B.197.
[1979 c.163 §4; 1979 c.547 §1; 2009 c.794 §3]
522.020 [1971
c.776 §32; repealed by 1975 c.552 §55]
522.025 Application.
(1) The provisions of this chapter relating to the location and drilling of any
well for the production of geothermal resources do not apply to any wells
producing geothermal resources on July 1, 1975, or wells, other than prospect
wells, where:
(a)
The geothermal fluids produced are of less than 250 degrees Fahrenheit bottom
hole temperature; or
(b)
Such fluids have been appropriated pursuant to ORS 537.505 to 537.795 and
537.992.
(2)
The provisions of this chapter relating to regulation of production of
geothermal resources from a geothermal reservoir apply only to wells with a
bottom hole temperature of at least 250 degrees Fahrenheit.
(3)
If the bottom hole temperature of a well that was initially at least 250
degrees Fahrenheit falls below 250 degrees Fahrenheit, the State Geologist and
the Water Resources Director, after consulting with the well owner, shall
determine the agency with regulatory responsibility for that specific well.
This determination shall be documented in writing and shall supersede a
determination made under subsection (1) or (2) of this section. This chapter
does not limit the authority of the Water Resources Department to regulate the
appropriation of water pursuant to ORS 537.505 to 537.795 and 537.992. [1975
c.552 §4; 1981 c.589 §1; 2009 c.794 §4]
522.035 Ownership rights.
Ownership rights to geothermal resources shall be in the owner of the surface
property underlain by the geothermal resources unless such rights have been
otherwise reserved or conveyed. However, nothing in this section shall divest
the people or the state of any rights, title or interest they may have in
geothermal resources. [1975 c.552 §21]
522.045 Decommissioned well; jurisdiction.
Any well drilled under authority of this chapter from which usable geothermal
resources cannot be derived, or the owner or operator has no intention of
deriving usable geothermal resources, and that is not expected to provide
information useful to the development of geothermal resources shall be plugged
and decommissioned as provided in this chapter or, upon the operator’s written
application to the State Department of Geology and Mineral Industries and with
the concurrence and approval of the Water Resources Director, jurisdiction over
the well may be transferred to the Water Resources Director and, in such case,
the well shall no longer be subject to the provisions of this chapter but shall
be subject to any applicable laws and rules relating to wells drilled for
appropriation and use of ground waters. If an application is made to transfer
jurisdiction, a copy of all logs, records, histories and descriptions shall be
provided to the Water Resources Director by the applicant. [1975 c.552 §4e;
2009 c.794 §5]
522.050 [1971
c.776 §1; 1975 c.552 §1; renumbered 522.015]
PROSPECT WELLS
522.055 Permit; application; fees.
(1) No person shall engage in drilling a prospect well without first obtaining
a permit issued under the authority of the State Department of Geology and
Mineral Industries and without complying with the conditions of such permit.
(2)
An application to drill prospect wells shall contain such information as the
department may require, including but not limited to a plugging and
decommissioning plan, and shall be accompanied by a nonrefundable fee in the
amount determined by the department to be the estimated cost of review of the
proposed prospect wells. Each application may include up to five prospect wells
in a given project area. The amount of the fee may not exceed $1,000 per five
prospect wells. A permit to drill remains valid until it is revoked or modified
by the department based on new information or changed conditions.
(3)
The permittee shall provide an annual nonrefundable fee of $500 on or before
the anniversary of the issuance date of each active permit.
(4)
A request by a permittee to transfer a permit issued under this section shall
be accompanied by a nonrefundable fee of $500.
(5)
All moneys received by the department under this section shall be paid into the
State Treasury and deposited in the General Fund to the credit of the Geology
and Mineral Industries Account established by ORS 516.070. [1975 c.552 §4a;
1991 c.526 §2; 2009 c.794 §6]
522.060 [1971
c.776 §34; repealed by 1975 c.552 §55]
522.065 Circulation of application to
state agencies; suggested conditions to permit; time limit for permit action.
(1) Upon receipt of a complete application to drill prospect wells, the State
Department of Geology and Mineral Industries shall circulate copies of the
application to the Water Resources Department, the Department of Environmental
Quality, the Department of Land Conservation and Development and the Department
of State Lands. The State Department of Geology and Mineral Industries may
circulate copies to other public agencies that may have an interest in the
permit application.
(2)
Any public agency receiving a copy of the application as provided in subsection
(1) of this section may suggest conditions under which a permit should be
granted. A public agency shall submit any suggested conditions to the State
Department of Geology and Mineral Industries within 45 days of the public
agency’s receipt of the copy of the application. The department shall consider any
suggested conditions that a public agency submits to the department within the
45-day period.
(3)
A permit issued under this section is subject to such conditions as the
department may impose. Included among the conditions shall be provision for the
proper and safe plugging and decommissioning of each prospect well. Subject to
ORS 522.075, the department shall issue or deny the permit by a written order
within 60 days after receipt of a complete application unless the department
determines that a longer period is necessary to respond to comments or new
information or for other good cause. [1975 c.552 §4b; 2009 c.794 §7]
522.070 [1971
c.776 §7; repealed by 1975 c.552 §55]
522.075 Bond or security; conditions;
cancellation. (1)(a) The State Department of Geology
and Mineral Industries may not issue a permit for a prospect well until the
applicant has provided a bond or alternative form of financial security as
specified in rules adopted by the governing board of the State Department of
Geology and Mineral Industries.
(b)
The amount of the bond or alternative form of financial security may not be
less than $10,000 for each prospect well or not less than $50,000 for all
prospect wells to be drilled.
(2)
The bond or alternative form of financial security must be conditioned upon
compliance with the requirements of this chapter and rules adopted and orders
issued pursuant to this chapter and must secure the state against all losses,
charges and expenses, including court costs and attorney fees, incurred by the
state in obtaining such compliance.
(3)
With the consent of the department, any bond or acceptable alternative form of
financial security submitted pursuant to this section may be terminated or
canceled. However, the department may not consent to the termination or
cancellation of any bond or security until each prospect well covered by such
bond or security has been properly and safely plugged and decommissioned
pursuant to the plan required by the permit or until another bond or security
for each well has been submitted and approved by the department. [1975 c.552 §4c;
1977 c.87 §1; 1979 c.163 §2; 1995 c.146 §1; 2009 c.794 §9]
522.080 Operator liability.
In addition to any other liability imposed by law, the operator of a prospect
well shall be liable to any person or public agency that sustains damages from
failure of the operator to comply with:
(1)
A condition in a permit requiring the operator to provide for the protection of
ground water in the area affected by the well; or
(2)
Any rules of the governing board of the State Department of Geology and Mineral
Industries establishing standards for blowout prevention, equipment and casing
design and removal, and any other procedures necessary to shut out detrimental
substances from strata containing ground or surface water usable for beneficial
purposes. [2009 c.794 §8]
522.085 Report certifying completion of
decommissioning plan. Upon completion of all drilling
and testing undertaken pursuant to an application to drill prospect wells, the
applicant shall file with the State Department of Geology and Mineral
Industries a report certifying the completion of the plugging and
decommissioning plan required by the permit. [1975 c.552 §4d; 2009 c.794 §10]
522.110 [1971
c.776 §11; 1973 c.388 §2; repealed by 1975 c.552 §55]
GEOTHERMAL WELLS
522.115 Permit; application; fees.
(1) No person shall engage in the drilling or operating of any geothermal well
without first obtaining a permit issued under the authority of the State
Department of Geology and Mineral Industries, and without complying with the
conditions of such permit.
(2)
An application for a permit shall contain:
(a)
The location and elevation of the floor of the proposed derrick.
(b)
The number or other designation approved by the department by which the well
shall be known.
(c)
The applicant’s estimate of the depths to be drilled.
(d)
The nature and character of the geothermal resource sought.
(e)
A reclamation plan for the well pad.
(f)
Such other information as the governing board of the State Department of
Geology and Mineral Industries by rule may require.
(3)
An application for a permit shall be accompanied by a nonrefundable fee of
$2,000.
(4)
The permittee shall provide an annual nonrefundable renewal fee on or before
the anniversary of the issuance date of each active permit as follows:
(a)
$1,500 for the first renewal year.
(b)
$500 for each subsequent renewal year.
(5)
A request by a permittee to modify a permit shall be accompanied by a
nonrefundable fee not to exceed $1,500.
(6)
A request by a permittee to transfer a permit issued under this section shall
be accompanied by a nonrefundable fee of $500.
(7)
A request by a permittee to plug and decommission a geothermal well shall be
accompanied by a nonrefundable fee of $1,000.
(8)
All moneys received by the department under this section shall be paid into the
State Treasury and deposited in the General Fund to the credit of the Geology
and Mineral Industries Account established by ORS 516.070. [1975 c.552 §5; 1977
c.87 §2; 1991 c.526 §3; 2009 c.794 §11]
522.120 [1971
c.776 §§12,13; 1973 c.388 §3; repealed by 1975 c.552 §55]
522.125 Circulation of application to
state agencies; suggested conditions to permit.
(1) Upon receipt of a complete application for a permit to drill or operate a
geothermal well, the State Department of Geology and Mineral Industries shall
circulate copies of the application to the Water Resources Department, the
State Department of Fish and Wildlife, the Department of Environmental Quality,
the State Parks and Recreation Department, the Department of Land Conservation
and Development, the State Department of Energy, the Department of State Lands
and the governing body of the county and the geothermal heating district in
which the well will be located. The State Department of Geology and Mineral
Industries may circulate copies to other public agencies that have an interest
in the application.
(2)
Any public agency receiving a copy of the application as provided in subsection
(1) of this section may suggest conditions under which a permit should be
granted. A public agency shall submit any suggested conditions to the State
Department of Geology and Mineral Industries within 45 days of the public
agency’s receipt of the copy of the application. The department shall consider
any suggested conditions that a public agency submits to the department within
the 45-day period. [1975 c.552 §6; 1981 c.694 §5; 1989 c.904 §66; 2009 c.794 §12]
522.130 [1971
c.776 §14; repealed by 1975 c.552 §55]
522.135 Permit; time limit for action;
grounds for issuance; conditions; fees. (1) Within 60
days after receipt of a complete application for a permit to drill or operate a
geothermal well, the State Department of Geology and Mineral Industries shall
by order issue or deny the permit unless the department determines that a
longer period is necessary to respond to comments or new information or for
other good cause.
(2)
Except as provided in ORS 522.145, the department shall issue the permit if,
after receipt of comments from the agencies referred to in ORS 522.125, the
department determines that issuance of the permit would be consistent with the
provisions of this chapter and ORS chapters 468A, 468B and 537, any rule
adopted under this chapter by the governing board of the State Department of
Geology and Mineral Industries, any rule adopted by the Water Resources
Commission under ORS chapter 537 and any rule adopted under ORS chapter 468 or
468B by the Environmental Quality Commission.
(3)
If the department issues a permit pursuant to this section, the department
shall impose such conditions as the department considers necessary to carry out
the provisions of this chapter and ORS chapters 468A, 468B and 537, any rule
adopted under this chapter by the governing board of the department, any rule
adopted by the Water Resources Commission under ORS chapter 537 and any rule
adopted under ORS chapter 468 or 468B by the Environmental Quality Commission.
The department shall include in the permit a statement that issuance of the permit
does not relieve any person from any obligation to comply with ORS 468B.035,
468B.050, 468B.195, 537.090 or 537.535 or any other applicable state or federal
environmental laws.
(4)
The State Geologist shall incorporate into the permit requirements:
(a)
Any conditions made by the Water Resources Director necessary to comply with
the purposes set forth in ORS 537.525; and
(b)
Any conditions made by the Department of Environmental Quality necessary to
comply with the purposes set forth in ORS 468A.010 and 468B.015.
(5)
Drilling, redrilling or deepening must begin within one year after the date of
permit issuance or the permit shall expire. However, the State Department of
Geology and Mineral Industries may extend the unused permit for a reasonable
period not to exceed one year beyond the initial one-year period upon receipt
of a written request from the permittee before the expiration date of the
permit. The request shall be accompanied by the nonrefundable fee specified in
ORS 522.115. [1975 c.552 §7; 1981 c.694 §6; 1991 c.526 §4; 2009 c.794 §13]
522.140 [1971
c.776 §6; 1973 c.388 §4; repealed by 1975 c.552 §55]
522.145 Bond or security; conditions;
cancellation. (1)(a) The State Department of Geology
and Mineral Industries may not issue a permit for a geothermal well until the
applicant has provided a bond or alternative form of financial security as
specified in rules adopted by the governing board of the State Department of
Geology and Mineral Industries.
(b)
The amount of the bond or alternative form of financial security may not be
less than $25,000 for each well or not less than $150,000 for all wells to be
drilled.
(2)
The bond or alternative form of financial security must be conditioned upon
compliance with the requirements of this chapter and rules adopted and orders
issued pursuant to this chapter and must secure the state against all losses,
charges and expenses, including court costs and attorney fees, incurred by the
state in obtaining such compliance.
(3)
With the consent of the department, any bond or acceptable alternative form of
financial security submitted pursuant to this section may be terminated or
canceled. However, the department may not consent to the termination or
cancellation of any bond or security until each geothermal well covered by such
bond or security has been properly and safely plugged and decommissioned
pursuant to the plan required by the permit or until another bond or security
for each well has been submitted and approved by the department. [1975 c.552 §8;
1977 c.87 §3; 1981 c.694 §7; 1995 c.146 §2; 2009 c.794 §14]
522.150 [1971
c.776 §8; repealed by 1975 c.552 §55]
522.155 Liability for failure to protect
ground water and surface water; rules. In addition
to any other liability imposed by law, the operator of a geothermal well shall
be liable to any person or public agency that sustains damages from failure of
the operator to comply with:
(1)
A condition in a permit requiring the operator to provide for the protection of
ground water in the area affected by the well; or
(2)
Any rules of the governing board of the State Department of Geology and Mineral
Industries establishing standards for blowout prevention, equipment and casing
design and removal, and any other procedures necessary to shut out detrimental
substances from strata containing ground or surface water usable for beneficial
purposes. [1975 c.552 §9; 2009 c.794 §15]
522.160 [1971
c.776 §18; repealed by 1975 c.552 §55]
522.165 Request for permit modification;
fee. (1) A permittee must make a request to
modify a permit before changing the location, number or designation specified
for any geothermal well or before undertaking to alter in any manner the casing
of a geothermal well.
(2)
A request to modify a permit under this section, except for changes to a well
name, shall be accompanied by the nonrefundable fee specified in ORS 522.115. [1975
c.552 §10; 2009 c.794 §16]
522.170 [1971
c.776 §5; repealed by 1975 c.552 §55]
522.175 Plugging and decommissioning;
rules. (1) No person shall abandon a
geothermal well without first plugging and decommissioning the well in
conformance with a plugging and decommissioning plan approved by the State
Department of Geology and Mineral Industries and complying with the provisions
of ORS 522.245.
(2)
The governing board of the department shall adopt rules designed to:
(a)
Protect underground and surface water usable for beneficial purposes from
pollution resulting from infiltration or addition of any detrimental substance;
(b)
Prevent the escape of all fluids to the surface;
(c)
Close the surface aperture of the well; and
(d)
Remove all surface equipment except that necessary to maintain permanent
closure of the well. [1975 c.552 §11; 1981 c.694 §8; 2009 c.794 §17]
522.180 [1971
c.776 §19; repealed by 1975 c.552 §55]
522.185 [1975
c.552 §13; repealed by 1981 c.694 §12]
522.190 [1971
c.776 §20; repealed by 1975 c.552 §55]
522.195 Monthly production statement;
rules. Except as excluded by rule adopted by
the governing board of the State Department of Geology and Mineral Industries,
the operator of any completed geothermal well shall file with the department a
monthly statement of the geothermal resources production from such well during
the preceding calendar month. [1975 c.552 §14]
522.200 [1971
c.776 §28; repealed by 1975 c.552 §55]
522.205 Notice by prospective operator of
transfer or purchase of well; application; fee; notice by buyer of land of transfer
or purchase; rules. (1) Except as excluded from the
provisions of this section by rule of the governing board of the State
Department of Geology and Mineral Industries, any prospective operator of a
geothermal well shall notify the department in such form as the department may
direct of the purchase, assignment, transfer, conveyance or exchange of the
well within 45 days of the purchase and shall accompany such notice with an
application for transfer of the permit for the particular well. The application
must include the transfer fee specified in ORS 522.115.
(2)
Any buyer of land on which a geothermal well is located shall notify the
department of the purchase, assignment, transfer, conveyance or exchange of the
land upon which such well is situated within 45 days of such purchase. [1975
c.552 §15; 2009 c.794 §18]
522.210 [1971
c.776 §31; repealed by 1975 c.552 §55]
522.215 Suspension of drilling or
operation; application; terms; extension; presumption of abandonment; unlawful
abandonment; notice; proceedings against operator.
(1) No operator shall suspend drilling or operation of a geothermal well
without obtaining permission from the State Department of Geology and Mineral
Industries.
(2)
The department may authorize an operator to suspend for a specific period
operations or remove equipment from an uncompleted geothermal well upon such
terms as the department may specify, upon written application of the operator
and an affidavit showing good cause therefor.
(3)
Within a period of six months from the ending date specified for such
suspension, the operator may make written application for an extension of
suspension and file it with an affidavit showing good cause for such an
extension. Upon a finding that the extension is merited, the governing board of
the department may extend the suspension for an additional specific period.
(4)
If, after suspension, operations are not resumed by the operator within six
months from the ending date specified for the suspension or extension thereof,
an intention to abandon and unlawful abandonment shall be presumed.
(5)
Whenever an operator whose operations have been suspended fails to comply with
such terms as the department may specify in its authorization, the geothermal
well shall be presumed unlawfully abandoned. A well shall also be deemed
unlawfully abandoned, if, without notice to the department, any drilling or
producing equipment is removed.
(6)
An unlawful abandonment shall be declared by order of the board, and written
notice thereof shall be mailed by registered mail or by certified mail with
return receipt both to such operator at the last-known post-office address of
the operator, to the registered agent of the operator, if any, and to the
operator’s sureties.
(7)
After declaration of unlawful abandonment, the board may proceed against the
operator and the surety of the operator as provided for in ORS 522.145 and may
bring suit pursuant to ORS 522.810 or take any other enforcement or recovery
action authorized by law. [1975 c.552 §16; 1981 c.694 §9; 1991 c.249 §39; 2009
c.794 §19]
522.220 [1971
c.776 §21; repealed by 1975 c.552 §55]
522.225 Notice of intent to plug and
decommission. (1) Before commencing any operation to
discontinue the use of a geothermal well, the operator shall give notice to the
State Department of Geology and Mineral Industries of the intention to plug and
decommission the well and the date upon which the work will begin.
(2)
Such notice shall be given at least 24 hours before the commencement of
plugging and decommissioning operations and shall indicate:
(a)
The condition of the well;
(b)
The proposed method of the plugging and decommissioning operation; and
(c)
Any additional information that may be required by the department. [1975 c.552 §17;
2009 c.794 §20]
522.230 [1971
c.776 §23; repealed by 1975 c.552 §55]
522.235 [1975
c.552 §18; repealed by 2009 c.794 §27]
522.240 [1971
c.776 §9; repealed by 1975 c.552 §55]
522.245 Department approval of plugging
and decommissioning; report by operator; effect of failure to comply; proceedings
against operator. (1) A representative of the
State Department of Geology and Mineral Industries may be present during any
operation to plug and decommission a geothermal well. If the representative
determines that the plugging and decommissioning is satisfactory, the
representative shall approve the plugging and decommissioning of the well.
(2)
Within 45 days after the completion of the plugging and decommissioning of any
geothermal well, the operator of the well shall make a written report of all
work done. Within 45 days after the receipt of the report, the department shall
furnish the operator with a written final approval of the plugging and
decommissioning or a written disapproval setting forth the conditions upon
which the disapproval is based.
(3)
Failure to plug and decommission in accordance with the approved method, failure
to submit to the department any notice or report required by this chapter or
failure to furnish the department with any required information shall
constitute sufficient grounds for disapproval of the plugging and
decommissioning and shall constitute unlawful abandonment of the well.
(4)
When the department has issued a written disapproval of the plugging and
decommissioning, the governing board of the department may proceed against the
operator and the surety of the operator as provided for in ORS 522.145 and may
bring suit pursuant to ORS 522.810 or take any other enforcement or recovery
action authorized by law. [1975 c.552 §19; 1981 c.694 §10; 2009 c.794 §21]
522.250 [1971
c.776 §10; repealed by 1975 c.552 §55]
522.255 Resolution of conflicts between geothermal
and water uses. If interference between an
existing geothermal well permitted under this chapter and an existing water
appropriation permitted under ORS chapter 537 is found by either the State
Geologist or the Water Resources Director, the State Geologist and the Water
Resources Director shall work cooperatively to resolve the conflict and develop
a cooperative management program for the area. In determining what action
should be taken, they shall consider the following goals:
(1)
Achieving the most beneficial use of the water and heat resources;
(2)
Allowing all existing users of the resources to continue to use those resources
to the greatest extent possible; and
(3)
Insuring that the public interest in efficient use of water and heat resources
is protected. [1981 c.589 §8]
522.260 [1971
c.776 §30; repealed by 1975 c.552 §55]
ADMINISTRATION
522.275 Administration by State Geologist.
Subject to policy direction by the governing board of the State Department of
Geology and Mineral Industries, the State Geologist shall administer this
chapter, the rules and orders made pursuant thereto, and supervise the
department in carrying out the provisions of this chapter. [1975 c.552 §23]
522.305 Rules.
(1) In accordance with the applicable provisions of ORS chapter 183, the
governing board of the State Department of Geology and Mineral Industries may
adopt rules necessary to implement the provisions of this chapter. This
authority includes, but is not limited to, rules relating to:
(a)
Establishing procedures for the issuance, modification, transfer, denial,
suspension and revocation of permits;
(b)
Establishing procedures for enforcing permit conditions, for enforcing the
requirements of this chapter and for enforcing rules adopted to implement the
provisions of this chapter; and
(c)
Establishing civil penalties for violations of this chapter, for violations of
rules adopted to implement the provisions of this chapter and for violations of
permits and orders issued pursuant to this chapter.
(2)
Any final determination made by the State Department of Geology and Mineral
Industries in carrying out the provisions of this chapter or in rules adopted
thereunder may be reviewed in the manner provided by the applicable provisions
of ORS chapter 183. [1975 c.552 §22; 2009 c.794 §25]
522.310 [1971
c.776 §24; repealed by 1975 c.552 §55]
522.315 Final order of department;
delivery to operator. Whenever the State Department of
Geology and Mineral Industries gives any written direction concerning any geothermal
well and the operator requests in writing that a final order for purposes of
ORS chapter 183 be made, the department shall, within 15 days after receipt of
the notice, deliver such final written order to the operator. [1975 c.552 §24]
522.320 [1971
c.776 §§25,26; repealed by 1975 c.552 §55]
522.325 Compliance with final order;
appeal. (1) The operator of any geothermal well
shall within 15 days from the date of the service of any order, either comply
with the order or file with the State Department of Geology and Mineral
Industries a written statement that the order is not acceptable, and the
reasons therefor, and the statement shall constitute an appeal from such order
to the governing board of the department.
(2)
Any final written order of the board may be appealed in the manner provided in
ORS chapter 183 for appeals from final orders in contested cases. [1975 c.552 §25]
522.330 [1971
c.776 §27; repealed by 1975 c.552 §55]
WELL RECORDS
522.355 Records of well; contents; drill
cutting and core samples. (1) The operator of any
geothermal well shall keep, or cause to be kept, a careful and accurate log,
core record and history of the drilling of the well.
(2)
The log referred to in subsection (1) of this section shall show the character
and depth of each formation encountered in the drilling of the well; the
amount, size and weight of casing used; and the location, depth and temperature
of water-bearing strata, including the temperature, chemical composition and
other chemical and physical characteristics of fluid encountered from time to
time, so far as determined.
(3)
The core record referred to in subsection (1) of this section shall show the
depth, character and fluid content of cores obtained, so far as determined from
the study and analysis thereof.
(4)
The history referred to in subsection (1) of this section shall show the
location and amount of sidetracked casings, tools or other material; the depth
and quantity of cement in cement plugs; the shots of dynamite or other
explosives used; the results of production and other tests during drilling
operations; and completion data.
(5)
The log referred to in subsections (1) and (2) of this section shall be kept in
the local office of the operator and, together with the tour reports of the
operator, shall be subject, during business hours, to inspection by the
governing board of the State Department of Geology and Mineral Industries, or
the department.
(6)
The operator of any geothermal well shall, in addition to furnishing the log,
records, and tests required by this section, collect representative drill
cuttings. The operator shall additionally, in the event cores are taken,
collect representative core samples. The drill cuttings and core samples shall
be filed with the department promptly upon completion or upon its written
request, and upon plugging and decommissioning or upon suspension of operations
for a period of at least six months. [1975 c.552 §26; 1977 c.87 §4; 2009 c.794 §22]
522.365 Filing record with department; exemption
from disclosure. (1) Each operator of any
geothermal well or the designated agent of the operator shall file with the
State Department of Geology and Mineral Industries a copy of the log, history
and core record, or any portion thereof, promptly upon completion, or upon the
written request of the department at any time after the commencement of the
work of drilling any geothermal well, and upon plugging and decommissioning or
upon suspension of operations for a period of at least six months.
(2)
For a period of four years after the receipt of any log, history, core record,
or any portion thereof, such record shall be exempt from disclosure as a trade
secret pursuant to ORS 192.501 unless the operator gives approval to release
the data. [1975 c.552 §27; 2009 c.794 §23]
UNITIZATION OF GEOTHERMAL RESOURCE AREA
522.405 Unitization; development of unit
agreement; rules. (1) When two or more separately
owned tracts of land are within an area under which a reservoir is located or
reasonably believed to be located, or when there are separately owned interests
in all or part of such an area, the governing board of the State Department of
Geology and Mineral Industries, upon its own motion may or upon the application
of an interested person or state or local governmental governing body, special
district or agency, shall review the need for unitization of the area. The
board by rule or order may require the development of a unit agreement for the
geothermal resource area if it finds:
(a)
Unitized management, operation and development of the geothermal resources in a
reservoir is necessary to increase the ultimate recovery of the resources;
(b)
The application of unitized methods of operation will prevent waste and aid
efficient production and utilization of the resource; or
(c)
Unitization and the unitized method of operation are in the public interest and
reasonably necessary to protect the correlative rights of owners.
(2)
When the board requires the development of a unit agreement under this section,
it shall encourage the development of a voluntary agreement between the
affected parties. In the absence of a voluntary agreement, the board shall
itself develop or cause to be developed a unit agreement that satisfies the
provisions of ORS 273.775, 308A.050 to 308A.128, 522.005, 522.015, 522.405 to
522.545, 522.815 and 522.990. In adopting a rule or entering an order for a
unit agreement, the board shall consider any plant dedicated area agreement in
effect and shall not contravene or interfere with that agreement unless it
finds that a term or condition of that agreement violates the policies stated
in ORS 522.015. The board shall require the development of the resource in
accordance with a proposed unit agreement if it finds that the agreement
conforms with the provisions of ORS 273.775, 308A.050 to 308A.128, 522.005,
522.015, 522.405 to 522.545, 522.815 and 522.990.
(3)
The development of a unit agreement under subsections (1) and (2) of this
section shall be conducted as a rulemaking proceeding in accordance with ORS chapter
183 unless an interested party requests that it be conducted as a contested
case in accordance with ORS chapter 183. In either event, notice shall be given
in accordance with the applicable provisions of ORS chapter 183.
(4)
As used in this section, “plant dedicated area agreement” means a contractual
relationship in geothermal energy development between a geothermal resource
owner and a customer which makes a specific surface area and related resource
base available exclusively to that customer. [1981 c.588 §8; 1999 c.314 §75]
522.410 [1971
c.776 §3; repealed by 1975 c.552 §55]
522.415 Unit operation plan.
A voluntary or board-sponsored unit agreement developed in response to a rule
adopted or an order issued under ORS 522.405 shall provide a unit operation
plan that includes:
(1)
A description of the geothermal reservoir and the overlaying land to be
operated as a unit.
(2)
A statement of the nature of the operations contemplated.
(3)
A provision for credits and charges to be made in the adjustment among the
owners in a unit area for their respective investments in geothermal wells,
prospect wells, machinery, materials and equipment used in the unit operation.
(4)
The division of interest or a formula for apportionment of unit production among
the separately owned tracts within the unit area which reasonably permits a
person or state or local governing body, special district or agency otherwise
entitled to share in or benefit by production from a tract to receive an
equitable and reasonable share of the unit production or other benefit. An
equitable and reasonable share of unit production is measured by the proportion
the value of the separately owned tract for geothermal resources recovery bears
to the value of the unit for that purpose, taking acreage into account.
(5)
Provisions which state how the costs will be paid, how unit production is to be
measured and when, how and by whom unit production is to be allocated. The
provision shall provide that unit production due to an owner who does not pay
that owner’s share of the cost of unit operation or that owner’s interest may
be sold and the proceeds applied to the cost.
(6)
A provision, if necessary, for making financing available to any person or
state or local governing body, special district or agency that wishes to obtain
financing. The provision shall allow a reasonable interest charge for the
service payable out of that respective share of production.
(7)
A provision for the supervision and conduct of the unit operation. Each person
or state or local governing body, special district or agency shall have a vote
on the provision with a weight corresponding to the percentage of the cost of
unit operation chargeable against that respective interest.
(8)
The time when the unit operation shall begin and the manner and circumstances
under which the unit operation shall terminate.
(9)
Provisions, if necessary, for the protection of preexisting water users within
the unit area and for administration of future water development from the
reservoir covered by the unit agreement. [1981 c.588 §9]
522.420 [1971
c.776 §35; repealed by 1975 c.552 §55]
522.425 Provisions in rule or order
requiring unit operation. Any rule or order of the
governing board of the State Department of Geology and Mineral Industries
providing for the unit operation of a geothermal resource area may include
provisions for:
(1)
Division of a reservoir into zones;
(2)
Establishment of spacing units, including a description of their location, size
and shape;
(3)
The integration of separately owned tracts or interests within a spacing unit,
the development and operation of the spacing unit and the sharing of
production;
(4)
The protection of existing and future beneficial uses of water;
(5)
Maintenance of the renewability of geothermal resources and any other natural
resources; and
(6)
Any additional provisions the board considers necessary for carrying out the
provisions of this chapter or for protection of the public health, safety and
welfare. [1981 c.588 §10]
522.430 [1971
c.776 §36; repealed by 1973 c.388 §8]
522.435 Rule, order to supersede previous
board action. Any rule adopted or order entered under
ORS 522.405 shall supersede any right or privilege previously granted by the
governing board of the State Department of Geology and Mineral Industries to
the same person or state or local governing body, special district or agency
with respect to the reservoir. [1981 c.588 §11]
522.440 [1971
c.776 §38; repealed by 1973 c.388 §8]
522.445 Condition to effectiveness of
unitization plan and unit agreement. (1) No rule
or order of the governing board of the State Department of Geology and Mineral
Industries which creates a unit and prescribes a unitization plan and no
applicable unit agreement shall be effective unless the plan of unit operation
required by the board under ORS 522.405 has been approved in writing by:
(a)
The operators who will be required to pay under the board’s rule or order at
least 75 percent of the unit operation costs; and
(b)
The persons or state or local governing body, special district or agency that,
at the time of the board rule or order, own record legal title to 75 percent of
the royalties payable with respect to the geothermal resource produced from the
unit area.
(2)
If the royalty owners who own the required percentage interest in the unit area
and the operators have not approved the unitization plan within six months of
the date on which the rule or order creating the unit is adopted or entered,
that rule or order shall become ineffective and shall be considered to have
been repealed or revoked by the board. [1981 c.588 §12]
522.450 [1971
c.776 §37; repealed by 1973 c.388 §8]
522.455 Rehearing on rule or order;
judicial review. (1) Any person or state or local
governing body, special district or agency with an interest in geothermal
resources within an area to be designated as a unit that is adversely affected
by any rule or order of the governing board of the State Department of Geology
and Mineral Industries may apply to the board for a rehearing within 30 days
after the adoption of the rule or entry of the order. The board shall decide
within 45 days after the filing date of the rule or order whether to grant a
rehearing. If granted, the rehearing shall be held without undue delay. Failure
to act within the 45-day period constitutes approval of the rehearing request.
(2)
Any person or state or local governing body, special district or agency that
holds a working interest in geothermal resources in a designated or proposed
unit area that is adversely affected by any rule promulgated or order entered
by the board may obtain judicial review of the rule or order pursuant to ORS
chapter 183. [1981 c.588 §13]
522.460 [1971
c.776 §4; repealed by 1975 c.552 §55]
522.465 Appointment of unit operator.
As part of a proposed rule or order designating a unit area and approving a
unitization plan or as part of a unit agreement, the working interest owners
under the agreement, within the time specified by the governing board of the
State Department of Geology and Mineral Industries, shall appoint the unit
operator. If the working interest owners do not make the appointment within the
specified time, the board shall appoint the unit operator. [1981 c.588 §14]
522.470 [1971
c.776 §22; 1973 c.388 §5; repealed by 1975 c.552 §55]
522.475 Board review of disputes over unit
operation; appeal. (1) Any disagreement with
respect to the unit operation between persons or between persons and state or
local governing bodies, special districts or agencies owning any interest in
the geothermal resources in a unit area, or between persons or state and local
governing bodies, special districts or agencies owning an interest in
geothermal resources in a unit area and a unit operator, including a dispute
over replacement of a unit operator, may be submitted to the governing board of
the State Department of Geology and Mineral Industries for its review and
decision.
(2)
The board decision under this section may be appealed to the Court of Appeals.
The appeal must be filed within 60 days of the date of the board’s decision. [1981
c.588 §15]
522.480 [1971
c.776 §33; 1973 c.388 §6; repealed by 1975 c.552 §55]
522.485 Amendment of unitization plan.
Subject to the same conditions and limitations provided with respect to the
creation of a unit, the following may occur:
(1)
A unit area may be enlarged to include adjoining portions of the same
geothermal resource area, including another unit area, and a new unit created
for the unitized management, operation and development of the enlarged unit
area; or
(2)
The unitization plan may be otherwise amended, including, but not limited to,
an amendment reducing unit area size. [1981 c.588 §16]
522.495 Presumptions regarding conduct of
operation. Any operation on any portion of the
unit area, including, but not limited to, the drilling or operation of a well,
is considered for all purposes the conduct of the same operation on the whole
unit area. The portion of unit production allocated to a separately owned tract
in a unit area is considered for all purposes to actually have been produced
from a well drilled upon that tract. An operation conducted pursuant to a board
rule adopted or order issued under ORS 522.405 constitutes a fulfillment of all
express or implied obligations under each lease or contract covering lands in
the unit area. [1981 c. 588 §17]
522.505 Unauthorized operation in unit area
prohibited; exemption. (1) The operation of a
geothermal well in a unit area by anyone other than by a person or state or
local governing body, special district or agency acting under the unit’s
authority shall be unlawful. That operation is prohibited from the effective
date of the board rule or order creating the unit and prescribing the
unitization plan or the unit agreement, except in the manner and to the extent
provided in the unitization plan or agreement.
(2)
The provisions of ORS 273.775, 308A.050 to 308A.128, 522.005, 522.015, 522.405
to 522.545, 522.815 and 522.990 shall not affect the ability of a ground water
user to exercise a water right that existed before the initiation of a unit
agreement. [1981 c.588 §18; 1999 c.314 §76]
522.510 [1971
c.776 §15; 1973 c.794 §24; repealed by 1975 c.552 §55]
522.515 When agreement or plan held not to
violate state securities or trade law. (1) A unit
agreement or unitization plan under a board rule adopted or order issued
pursuant to ORS 522.405 shall not be held or construed to violate ORS 59.005 to
59.451, 59.710 to 59.830, 59.991 and 59.995 or any state statute relating to
trusts, monopolies or contracts and combinations in restraint of trade if the
board has made a finding that the agreement is in the public interest for the
protection of correlative rights and is necessary to enhance recovery of
geothermal resources or to prevent waste.
(2)
Any voluntary unit agreement or plan for unitization between owners, holders of
working interests and holders of royalty interests for the exploration,
development and operation of a unit area shall not be held or construed to
violate ORS 59.005 to 59.451, 59.710 to 59.830, 59.991 and 59.995 or any state
statute relating to trusts, monopolies or contracts and combinations in
restraint of trade if the agreement is approved by the board as being in the
public interest for the protection of correlative rights and necessary to
enhance recovery of geothermal resources or to prevent waste.
(3)
A voluntary agreement may be submitted to the board for approval as being in
the public interest for the protection of correlative rights and necessary to
enhance recovery of geothermal resources or to prevent waste. Board approval
constitutes a complete defense to any proceeding charging violation of ORS
59.005 to 59.451, 59.710 to 59.830, 59.991 and 59.995 or of any state statute
relating to trusts or monopolies on account of operations conducted pursuant to
the agreement.
(4)
The failure to submit a voluntary agreement for board approval does not
constitute evidence that the agreement or operation violates ORS 59.005 to
59.451, 59.710 to 59.830, 59.991 and 59.995 or any state statute relating to
trusts or monopolies. [1981 c.588 §19]
522.520 [1971
c.776 §17; 1973 c.794 §25; repealed by 1975 c.552 §55]
522.525 Land subject to board authority;
federal lands. Board authority applies to all private,
municipal, state and federal land in the state which is subject to the state’s
regulatory authority. When land subject to federal jurisdiction is committed to
a unit agreement or cooperative agreement the board may suspend the operation
of this chapter or any provision of this chapter if:
(1)
The unit operation is regulated by the United States; and
(2)
The unit agreement prevents waste and encourages maximum economic development
of the resource. [1981 c.588 §20]
522.530 [1971
c.776 §16; repealed by 1973 c.794 §34]
522.535 Fees; rules.
(1) The governing board of the State Department of Geology and Mineral
Industries shall establish reasonable fees by rule pursuant to ORS chapter 183
for the purpose of the development and administration of a unit agreement to be
paid by all persons or state or local governing bodies, special districts or
agencies with a royalty interest in that unitized development. The fee schedule
shall recognize the reduced workload involved in review of a voluntary unit
agreement that complies with this chapter.
(2)
When a person or state or local governing body, special district or agency with
a royalty interest fails to pay a fee imposed by the board under ORS 522.545 or
this section, the board may require that the fee be paid from the proceeds of
the sale of the unit production attributable to that interest. [1981 c.588 §21]
522.540 [1971
c.776 §29; repealed by 1973 c.794 §34]
522.545 Rulemaking authority.
The governing board of the State Department of Geology and Mineral Industries
may make, in compliance with ORS chapter 183, rules and orders for the
following purposes:
(1)
To review and enforce voluntary unit agreements governing production of
geothermal resources in a manner that is consistent with the provisions of this
chapter.
(2)
To provide application forms and procedures to enable a person to request the
board to initiate a unit agreement.
(3)
To develop and enforce, when necessary, unit agreements satisfying the
requirements of this chapter.
(4)
To settle disagreements between the parties to a unit agreement over unit
operation.
(5)
To change the boundaries of a unit area.
(6)
To prevent the drilling and operation of geothermal wells and the production of
geothermal resources in a manner that causes injury to neighboring leaseholds
or property.
(7)
To levy fees on any operator, person, state or local governing body, special
district or agency that holds a royalty interest in a unit area to cover
reasonable costs associated with the development and administration of a unit
agreement. [1981 c.588 §22]
ENFORCEMENT
522.810 Suits to enjoin violations.
Whenever it appears that any person is violating or threatening to violate any
provision of this chapter or any rule or order of the governing board of the
State Department of Geology and Mineral Industries made thereunder, or is
threatening to or committing waste, the board may bring suit against such
person in the circuit court of any county where the violation or waste occurs
or is threatened, to restrain such person from continuing such violation or
waste. In any such suit, the court shall have jurisdiction to grant to the
board, without bond or other undertaking, such temporary restraining orders or
final prohibitory and mandatory injunctions as the facts may warrant, including
any such orders restraining the movement, disposition or waste of geothermal
resources. [1971 c.776 §41; 1973 c.388 §7; 1975 c.552 §29]
522.815 Rules by board; scope; adoption;
notice. (1) In accordance with the rulemaking
provisions of ORS chapter 183, the governing board of the State Department of
Geology and Mineral Industries may adopt rules necessary to conserve geothermal
resources or other natural resources, or to protect the environment, the
correlative rights of any person having an ownership interest in the affected
land or resource, or beneficial uses of water, or to accomplish the efficient
and economical development of a geothermal reservoir. The rules shall include a
description of the geothermal reservoir and the overlying land and may also
include provisions for the following:
(a)
Division of a geothermal reservoir into zones;
(b)
Establishment of spacing units including a description of the location, size
and shape of such spacing units;
(c)
The integration of separately owned tracts or interests within a spacing unit
for the development and operation of the spacing unit and the sharing of
production therefrom;
(d)
The protection of existing and future beneficial uses of water;
(e)
Maintaining the renewability of geothermal resources and any other natural
resources; and
(f)
Any additional provisions the board deems necessary for carrying out the
provisions of this chapter or for protecting the public health, safety and
welfare.
(2)
Any rule adopted under this section may in the board’s discretion supersede any
right or privilege previously granted by or previously entered by the board
with respect to such reservoir and may be amended in accordance with the
rulemaking provisions of ORS chapter 183 as appears necessary to the board to further
the policy stated in ORS 522.015.
(3)
Any proceeding under this section shall be conducted as a rulemaking proceeding
in accordance with ORS chapter 183 unless an interested party requests that it
be conducted as a contested case in accordance with ORS chapter 183. In either
event, notice shall be given in accordance with the requirements of ORS chapter
183. Notice shall always be given to the following persons:
(a)
Any operator who has a drilling permit issued pursuant to ORS 522.135 or has a
legal right to operate a completed geothermal well in the geothermal reservoir;
and
(b)
Any person who has an ownership interest in the geothermal reservoir. [1975
c.552 §43; 1981 c.588 §5; 1981 c.694 §11]
PROHIBITED ACTS
522.910 Aiding in violations prohibited.
No person shall knowingly aid or abet any other person in the violation of any
provision of this chapter or of any rule or order of the governing board of the
State Department of Geology and Mineral Industries made thereunder. [1971 c.776
§40; 1975 c.552 §30]
522.915 False entries, omissions,
destruction or removal of records or reports. No
person shall:
(1)
Make or cause to be made any false entry or statement in a report, record, log,
account or other writing required by this chapter or any rule adopted pursuant
thereto;
(2)
Omit or cause to be omitted from any such report, record, log, account or
writing, full, true and correct entries as required by this chapter or any rule
or order adopted pursuant thereto;
(3)
Destroy, mutilate, alter or falsify any such report, record, log, account or
writing; or
(4)
Remove from this state the original copy of any such report, record, log,
account or writing before the plugging and decommissioning of a geothermal well
has been approved pursuant to ORS 522.245 (2). [1975 c.552 §28; 2009 c.794 §24]
522.920 [1971
c.776 §39; repealed by 1975 c.552 §55]
PENALTIES
522.990 Penalties.
Subject to ORS 153.022, violation of any provision of this chapter or of any
rule or order of the governing board of the State Department of Geology and
Mineral Industries made thereunder, excluding ORS 522.405 to 522.545 and any
rule promulgated thereunder, is a Class B misdemeanor. [1971 c.776 §42; 1975
c.552 §31; 1981 c.588 §6; 1999 c.1051 §316; 2011 c.597 §222]
_______________