US Laws, Codes, Statutes & Cases

Chapter 522 — Geothermal Resources

 

2007 EDITION

 

GEOTHERMAL RESOURCES

 

MINERAL RESOURCES

 

GENERAL PROVISIONS

 

522.005     Definitions

 

522.015     Policy

 

522.019     Injection of geothermal fluids; rules; water pollution control facilities permit

 

522.025     Application

 

522.035     Ownership rights

 

522.045     Abandoned 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; execution; cancellation; waiver

 

522.085     Report certifying completion of abandonment 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; construction of permit

 

522.145     Bond or security; execution; cancellation; waiver; rules

 

522.155     Liability for failure to protect ground water; standards for protection of ground and surface water; rules

 

522.165     Location, number or designation change; alteration of casing

 

522.175     Abandonment; proceedings against operator for unlawful abandonment; rules

 

522.195     Monthly production statement; rules

 

522.205     Transfer or purchase of well; notice; application; fee; notice by landowner 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 abandon

 

522.235     Conditions precedent to abandonment

 

522.245     Department approval of abandonment; 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, 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 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 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 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]

 

      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 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. [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