2007 Oregon Code - Chapter 522 :: Chapter 522 - Geothermal Resources
Chapter 522 —
Geothermal Resources
2007 EDITION
GEOTHERMAL RESOURCES
MINERAL RESOURCES
GENERAL PROVISIONS
522.005Â Â Â Â Definitions
522.015Â Â Â Â Policy
522.019Â Â Â Â Injection
of geothermal fluids; rules; water pollution control facilities permit
522.025Â Â Â Â Application
522.035Â Â Â Â Ownership
rights
522.045Â Â Â Â Abandoned
well; jurisdiction
PROSPECT WELLS
522.055Â Â Â Â Permit;
application; fees
522.065Â Â Â Â Circulation
of application to state agencies; suggested conditions to permit; time limit
for permit action
522.075Â Â Â Â Bond
or security; execution; cancellation; waiver
522.085Â Â Â Â Report
certifying completion of abandonment plan
GEOTHERMAL WELLS
522.115Â Â Â Â Permit;
application; fees
522.125Â Â Â Â Circulation
of application to state agencies; suggested conditions to permit
522.135Â Â Â Â Permit;
time limit for action; grounds for issuance; conditions; fees; construction of
permit
522.145Â Â Â Â Bond
or security; execution; cancellation; waiver; rules
522.155Â Â Â Â Liability
for failure to protect ground water; standards for protection of ground and
surface water; rules
522.165Â Â Â Â Location,
number or designation change; alteration of casing
522.175Â Â Â Â Abandonment;
proceedings against operator for unlawful abandonment; rules
522.195Â Â Â Â Monthly
production statement; rules
522.205Â Â Â Â Transfer
or purchase of well; notice; application; fee; notice by landowner of transfer
or purchase; rules
522.215Â Â Â Â Suspension
of drilling or operation; application; terms; extension; presumption of
abandonment; unlawful abandonment; notice; proceedings against operator
522.225Â Â Â Â Notice
of intent to abandon
522.235Â Â Â Â Conditions
precedent to abandonment
522.245Â Â Â Â Department
approval of abandonment; report by operator; effect of failure to comply;
proceedings against operator
522.255Â Â Â Â Resolution
of conflicts between geothermal and water uses
ADMINISTRATION
522.275Â Â Â Â Administration
by State Geologist
522.305Â Â Â Â Rules
522.315Â Â Â Â Final
order of department; delivery to operator
522.325Â Â Â Â Compliance
with final order; appeal
WELL RECORDS
522.355Â Â Â Â Records
of well; contents; drill cutting and core samples
522.365Â Â Â Â Filing
record with department; exemption from disclosure
UNITIZATION OF GEOTHERMAL RESOURCE AREA
522.405Â Â Â Â Unitization;
development of unit agreement; rules
522.415Â Â Â Â Unit
operation plan
522.425Â Â Â Â Provisions
in rule or order requiring unit operation
522.435Â Â Â Â Rule,
order to supersede previous board action
522.445Â Â Â Â Condition
to effectiveness of unitization plan and unit agreement
522.455Â Â Â Â Rehearing
on rule or order; judicial review
522.465Â Â Â Â Appointment
of unit operator
522.475Â Â Â Â Board
review of disputes over unit operation; appeal
522.485Â Â Â Â Amendment
of unitization plan
522.495Â Â Â Â Presumptions
regarding conduct of operation
522.505Â Â Â Â Unauthorized
operation in unit area prohibited; exemption
522.515Â Â Â Â When
agreement or plan held not to violate state securities or trade law
522.525Â Â Â Â Land
subject to board authority; federal lands
522.535Â Â Â Â Fees;
rules
522.545Â Â Â Â Rulemaking
authority
ENFORCEMENT
522.810Â Â Â Â Suits
to enjoin violations
522.815Â Â Â Â Rules
by board; scope; adoption; notice
PROHIBITED ACTS
522.910Â Â Â Â Aiding
in violations prohibited
522.915Â Â Â Â False
entries, omissions, destruction or removal of records or reports
PENALTIES
522.990Â Â Â Â 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
departmentÂ’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 ownerÂ’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, less than 2,000 feet
in depth, 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]
     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
     (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 and abandoned 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 or abandonment of geothermal or
prospect wells;
     (c) To supervise the drilling, operation,
maintenance and abandonment 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]
     522.019
Injection of geothermal fluids; rules; water pollution control facilities
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 which govern 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) A water pollution control facilities
permit shall be obtained from the Department of Environmental Quality under ORS
468B.050 before reinjection is commenced. The Department of Environmental
Quality may, by agreement with the State Department of Geology and Mineral
Industries, waive this requirement for reinjection into the reservoir from
which the fluid came where adequate standards and tests have been adopted to
insure the fluid and its residues are uncontaminated. [1979 c.163 §4; 1979
c.547 §1]
     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,
drilled to a depth no greater than 2,000 feet 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. [1975 c.552 §4; 1981 c.589 §1]
     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
Abandoned 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, shall be plugged and abandoned as
provided in this chapter or, upon the operatorÂ’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]
     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 Geologist and without
complying with the conditions of such permit.
     (2) An application to drill prospect wells
shall contain such information as the State Department of Geology and Mineral
Industries may require, and shall be accompanied by a nonrefundable fee set by
the governing board of the department but not to exceed $250 to cover all
prospect wells included within the application. A permit shall remain valid for
one year from the date it is issued.
     (3) An unused permit may be extended by
the State Geologist 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 a
nonrefundable fee set by the board not to exceed $250.
     (4) The permittee shall provide an annual
nonrefundable fee set by the board not to exceed $500 on or before the
anniversary of the issuance date of each active permit.
     (5) All moneys paid to the department
under this section shall be deposited with the State Treasurer and are
continuously appropriated to the department for the administration of chapter
552, Oregon Laws 1975. [1975 c.552 §4a; 1991 c.526 §2]
     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 an application to drill prospect wells, the State Geologist
shall circulate copies of the application to the Water Resources Director, the
Director of the Department of Environmental Quality, the Director of the
Department of Land Conservation and Development, and the Director of the
Department of State Lands.
     (2) Any public agency desiring to suggest
conditions under which a permit should be granted shall provide such
information to the State Department of Geology and Mineral Industries within 15
days of receipt of the copy of the application.
     (3) Except as provided in ORS 522.075,
within 30 days of receipt of an application to drill prospect wells, the State
Geologist shall grant a permit to drill, subject to such conditions as the
State Geologist may impose. Included among the conditions shall be provision
for the proper and safe abandonment of each prospect well. [1975 c.552 §4b]
     522.070 [1971 c.776 §7; repealed by 1975 c.552 §55]
     522.075
Bond or security; execution; cancellation; waiver. (1) No permit for prospect wells shall be
granted until the applicant has filed with the State Department of Geology and
Mineral Industries a bond or alternative form of financial security acceptable
to the department in the sum established by rule by the governing board of the
department. The amount of the bond or security shall be a sum of not less than
$10,000 for each hole to be drilled or a blanket bond in the amount of not less
than $50,000 for all prospect wells which are included within the application
and to be drilled by the applicant.
     (2) The bond or alternative form of
financial security shall be conditioned upon compliance with the requirements
of this chapter and rules adopted and orders issued pursuant to this chapter
and shall secure the state against all losses, charges and expenses, including court
costs and attorney fees, incurred by it in obtaining such compliance.
     (3) With the consent of the department,
any bond or acceptable alternative form of financial security submitted as
required by this section may be terminated or canceled. However, the department
shall not consent to the termination or cancellation of any bond or security
until the prospect wells covered by such bond or security have been properly
and safely abandoned pursuant to the abandonment plan required by the permit or
another bond or security for the prospect wells has been submitted and approved
by the department.
     (4) For those applications concerning
prospect wells on federal lands, the department may waive the requirements of
subsections (1) to (3) of this section upon receipt of suitable proof of
compliance by the applicant with federal bond requirements which would, in the
opinion of the department, be unnecessarily duplicated by the requirements of
this section. [1975 c.552 §4c; 1977 c.87 §1; 1979 c.163 §2; 1995 c.146 §1]
     522.085
Report certifying completion of abandonment plan. Upon completion of all drilling and testing
undertaken pursuant to an application to drill prospect wells, the applicant
shall file with the State Geologist a report certifying the completion of the
abandonment plan required by the permit. [1975 c.552 §4d]
     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
Geologist, 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 State Department of Geology and Mineral Industries 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) Such other information as the
governing board of the department by rule may require.
     (3) An application for a permit shall be
accompanied by a nonrefundable fee set by the board not to exceed $250.
     (4) The permittee shall provide an annual
nonrefundable fee set by the board not to exceed $500 on or before the
anniversary of the issuance date of each active permit.
     (5) All fees collected by the department
under this section shall be deposited with the State Treasurer and are continuously
appropriated to the department for the administration of chapter 552, Oregon
Laws 1975. [1975 c.552 §5; 1977 c.87 §2; 1991 c.526 §3]
     Note: Legislative Counsel has substituted “chapter
552, Oregon Laws 1975,” for the words “this Act” in sections 5 and 7, chapter
552, Oregon Laws 1975, compiled as 522.115 and 522.135. Specific ORS references
have not been substituted pursuant to 173.160. These sections may be determined
by referring to the 1975 Comparative Section Table located in Volume 20 of ORS.
     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 an 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 Director, the State Fish and Wildlife Director, the Director of the
Department of Environmental Quality, the State Parks and Recreation Director,
the Director of the Department of Land Conservation and Development, the
Director of the State Department of Energy, the Director of the Department of
State Lands and the governing body of the county and the geothermal heating
district in which the well will be located.
     (2) Any public agency desiring to suggest
conditions under which a permit should be granted shall provide such
information to the department within 30 days of receipt of the copy of the
application. [1975 c.552 §6; 1981 c.694 §5; 1989 c.904 §66]
     522.130 [1971 c.776 §14; repealed by 1975 c.552 §55]
     522.135
Permit; time limit for action; grounds for issuance; conditions; fees;
construction of permit. (1)
Within 45 days after receipt of the application, the State Geologist shall by
order issue, deny, suspend, modify, revoke or not renew a permit pursuant to
this chapter and ORS chapter 183 except that appeal of any order issued
pursuant to this section shall be made to the governing board of the State
Department of Geology and Mineral Industries before any appeal under ORS
183.480 is allowed.
     (2) The State Geologist may issue the
permit if, after receipt of comments from the agencies referred to in ORS
522.125, the State Geologist determines that issuance thereof would be
consistent with the purposes set forth in ORS 468A.010, 468B.015 and 537.525,
rules adopted pursuant to ORS 468B.030, and the purposes of this chapter.
     (3) If the State Geologist issues a permit
pursuant to this section, the State Geologist shall impose such conditions as
the State Geologist considers necessary to carry out the purposes set forth in
ORS 468A.010, 468B.015 and 537.525, rules adopted pursuant to ORS 468B.030, and
the purposes of this chapter. The State Geologist shall include in the permit a
statement that issuance thereof does not relieve any person from any obligation
to obtain a permit under ORS 468B.030 or 468B.035.
     (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) A drilling, redrilling or deepening
operation must begin within one year after the date of permit issuance or the
permit shall expire. However, the State Geologist 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 a
nonrefundable fee set by the board not to exceed $250.
     (6) Nothing in chapter 552, Oregon Laws
1975, shall be construed to excuse an operator of a geothermal well from
complying with the provisions of the Federal Water Pollution Control Act
amendments of 1972 (Public Law 92-500) or ORS 468B.035 or to dilute the
authority of the Department of Environmental Quality to issue National
Pollution Discharge Elimination Systems Permits.
     (7) All fees collected by the department
under this section shall be deposited with the State Treasurer and are
continuously appropriated to the department for the administration of chapter
552, Oregon Laws 1975. [1975 c.552 §7; 1981 c.694 §6; 1991 c.526 §4]
     Note: See note under 522.115.
     522.140 [1971 c.776 §6; 1973 c.388 §4; repealed by
1975 c.552 §55]
     522.145
Bond or security; execution; cancellation; waiver; rules. (1) Except as waived by rule of the
governing board of the State Department of Geology and Mineral Industries, no
permit shall be granted until:
     (a) The applicant has filed with the
department a bond or security acceptable to the department in the sum
established by rule by the board. The amount of the bond or security shall be a
sum of not less than $25,000 for each well to be drilled; or
     (b) The applicant to drill more than one
geothermal well has filed with the department a bond or acceptable alternative
form of financial security in the sum established by rule by the board. The
amount of the bond or security shall be a sum of not less than $150,000 for all
wells to be drilled.
     (2) The bond or acceptable alternative
form of financial security shall be conditioned upon compliance with the
requirements of this chapter and rules adopted and orders issued pursuant to
this chapter and shall secure the state against all losses, charges and
expenses, including court costs and attorney fees, incurred by it in obtaining
such compliance.
     (3) With the consent of the department,
any bond or acceptable alternative form of financial security acceptable to the
department submitted as required by this section may be terminated or canceled.
However, the department shall not consent to the termination or cancellation of
any bond or security until each geothermal well covered by such bond or
security has been:
     (a) Lawfully abandoned as a dry hole; or
     (b) Properly completed, has ceased
production and been lawfully abandoned.
     (4) For those applications concerning
geothermal wells on federal lands, the department may waive the requirements of
subsections (1) to (3) of this section upon receipt of suitable proof of
compliance by the applicant with federal bond requirements which would, in the
opinion of the department, be unnecessarily duplicated by the requirements of
this section. [1975 c.552 §8; 1977 c.87 §3; 1981 c.694 §7; 1995 c.146 §2]
     522.150 [1971 c.776 §8; repealed by 1975 c.552 §55]
     522.155
Liability for failure to protect ground water; standards for protection of ground
and surface water; rules.
(1) In addition to any other liability of the operator of a geothermal well,
the operator shall be liable to any person or public agency that sustains
damages from failure of the operator to comply with a condition in a permit
requiring the operator to provide for the protection of ground water in the
area affected by the well.
     (2) The governing board of the State
Department of Geology and Mineral Industries shall adopt by rule 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]
     522.160 [1971 c.776 §18; repealed by 1975 c.552 §55]
     522.165
Location, number or designation change; alteration of casing. (1) The location, number or designation
specified for any geothermal well in a permit issued pursuant to ORS 522.135
shall not be changed without first obtaining written consent from the State Department
of Geology and Mineral Industries.
     (2) No operator shall alter in any manner
the casing of a geothermal well without notifying the department and obtaining
its approval. [1975 c.552 §10]
     522.170 [1971 c.776 §5; repealed by 1975 c.552 §55]
     522.175
Abandonment; proceedings against operator for unlawful abandonment; rules. (1) No person shall abandon a geothermal
well without first obtaining approval of the State Department of Geology and
Mineral Industries.
     (2) A geothermal well shall be considered
lawfully abandoned when the operator has conformed to ORS 522.245 and to rules
adopted by the governing board of the department designed to:
     (a) Protect underground and surface water
usable for beneficial purposes from pollution resulting from infiltration or
addition of any deleterious 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.
     (3) When the operator has violated
subsection (1) or (2) of this section or ORS 522.225, or when the department
has issued a written disapproval of abandonment, the board may proceed against
the operator and surety of the operator as provided for in ORS 522.145 and may
bring suit pursuant to ORS 522.810. [1975 c.552 §11; 1981 c.694 §8]
     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
Transfer or purchase of well; notice; application; fee; notice by landowner 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 such well within 15 days of the purchase and shall
accompany such notice with an application for transfer of the permit for the
particular well. The fee for transfer of a permit is $25.
     (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 15 days of such purchase. [1975 c.552 §15]
     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 operatorÂ’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. [1975 c.552 §16; 1981 c.694 §9; 1991 c.249 §39]
     522.220 [1971 c.776 §21; repealed by 1975 c.552 §55]
     522.225
Notice of intent to abandon.
(1) Before commencing any operation to abandon a geothermal well, the operator
shall give notice to the State Department of Geology and Mineral Industries of
the intention to abandon the well and the date upon which the work of
abandonment will begin.
     (2) Such notice shall be given at least 24
hours before the commencement of abandonment operations and shall indicate:
     (a) The condition of the well;
     (b) The proposed method of the abandonment
operation; and
     (c) Any additional information that may be
required by the department. [1975 c.552 §17]
     522.230 [1971 c.776 §23; repealed by 1975 c.552 §55]
     522.235
Conditions precedent to abandonment. Before the proposed date upon which the work of abandonment will
begin, the State Department of Geology and Mineral Industries shall furnish the
operator with:
     (1) Approval to commence the abandonment
operation;
     (2) Conditional approval to commence the
abandonment operation, stating what specific work or tests will be necessary
before approval of the abandonment operation will be given; or
     (3) A report stating what specific
information is required to be furnished by the operator to the department
before the department may take action upon the proposed abandonment operation. [1975
c.552 §18]
     522.240 [1971 c.776 §9; repealed by 1975 c.552 §55]
     522.245
Department approval of abandonment; 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 abandonment operation. If the
representative determines that the abandonment is satisfactory, the
representative shall approve the abandonment of the well.
     (2) Within 30 days after the completion of
abandonment of any geothermal well, the operator of the well shall make a
written report of all work done with respect to the abandonment. Within 10 days
after the receipt of such report, the department shall furnish the operator
with a written final approval of abandonment, or a written disapproval of
abandonment setting forth the conditions upon which the disapproval is based.
     (3) Failure to abandon in accordance with
the approved method of abandonment, 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 abandonment of such well.
     (4) When the department has issued a
written disapproval of abandonment, the governing board of the department may
proceed against the operator and the surety of the operator as provided for in
ORS 522.145 or may bring suit pursuant to ORS 522.810. [1975 c.552 §19; 1981
c.694 §10]
     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. In accordance with
applicable provisions of ORS chapter 183, the governing board of the State
Department of Geology and Mineral Industries may make reasonable rules
necessary for the administration of this chapter. [1975 c.552 §22]
     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 the abandonment
or upon suspension of operations for a period of at least six months. [1975
c.552 §26; 1977 c.87 §4]
     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 the abandonment 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]
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 ownerÂ’s share of the cost of
unit operation or that ownerÂ’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 boardÂ’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 unitÂ’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 stateÂ’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
     (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 boardÂ’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 an abandonment
has been approved pursuant to ORS 522.245 (2). [1975 c.552 §28]
     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 punishable, upon conviction, by a fine of not more than $2,500
or by imprisonment in the county jail for not more than six months, or both. [1971
c.776 §42; 1975 c.552 §31; 1981 c.588 §6; 1999 c.1051 §316]
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