Oregon Revised Statutes

Chapter 520 — Conservation of Gas and Oil

50 sections

520.005 Definitions

As used in this chapter, unless the context requires otherwise: “Condensate” means liquid hydrocarbons that were originally in the gaseous phase in the reservoir. “Field” means the general area underlaid by one or more pools. “Gas” means all natural gas and all other fluid hydrocarbons not defined as oil in subsection (5) of this section, including conden…

520.010 [Repealed by 1953 c.667 §21]repealed

No operative statutory text appears at this designation in the selected edition.

520.015 [1953 c.667 §2; 1999 c.59 §164; repealed by 2007 c.672 §24]repealed

No operative statutory text appears at this designation in the selected edition.

520.017 Fees; rules; disposition of fees

The following fees are established under this chapter: The application fee for a permit to drill a well is $5,000. The fee to modify a well permit, information hole permit or seismic program permit is $5,000. The annual renewal fee for a well permit, information hole permit or seismic program permit is $4,000. The application fee for a permit to drill an…

520.020 [Repealed by 1953 c.667 §21]repealed

No operative statutory text appears at this designation in the selected edition.

520.025 Permit for drilling well or using well; extension; annual report; grounds for granting or denying permit

A person may not drill or use a well without first obtaining a permit from the State Department of Geology and Mineral Industries and posting any bond that may be required pursuant to ORS 520.095 (1). When drilling has been completed, the well must be maintained under a permit until it is properly plugged and the site is reclaimed. A permittee maintaining o…

520.027 Information holes; holes drilled as part of seismic program; trade secrets

A person may not drill an information hole or a hole drilled as part of a seismic program without first applying for approval from the State Department of Geology and Mineral Industries and paying the fee established in ORS 520.017. The application must be submitted on a form provided by the department and must include all information requested by the depart…

520.030 [Repealed by 1953 c.667 §21]repealed

No operative statutory text appears at this designation in the selected edition.

520.035 Waste of oil or gas prohibited

The waste of oil or gas, as defined in ORS 520.005, is prohibited.

520.040 [Repealed by 1953 c.667 §21]repealed

No operative statutory text appears at this designation in the selected edition.

520.045 Determination of waste of oil or gas

The State Department of Geology and Mineral Industries may determine whether waste of oil or gas over which it has jurisdiction exists or is imminent. In the exercise of such power the department may: Collect data. Make investigations and inspections. Examine properties, leases, papers, books and records, including drilling records and logs. Examine, che…

520.050 [Repealed by 1953 c.667 §21]repealed

No operative statutory text appears at this designation in the selected edition.

520.055 General jurisdiction and authority of board; tidal lands; rules

The governing board of the State Department of Geology and Mineral Industries has jurisdiction and authority over all persons and property, including tidal submerged and submersible lands of this state under ORS 274.705 to 274.860, necessary to enforce effectively this chapter and all other laws relating to the conservation of oil and gas. In addition to an…

520.060 [Repealed by 1953 c.667 §21]repealed

No operative statutory text appears at this designation in the selected edition.

520.065 [1953 c.667 §8; renumbered 520.210]renumbered

No operative statutory text appears at this designation in the selected edition.

520.070 [Repealed by 1953 c.667 §21]repealed

No operative statutory text appears at this designation in the selected edition.

520.075 [1953 c.667 §9; 1961 c.671 §16; renumbered 520.220]renumbered

No operative statutory text appears at this designation in the selected edition.

520.080 [Repealed by 1953 c.667 §21]repealed

No operative statutory text appears at this designation in the selected edition.

520.085 [1953 c.667 §10; 1961 c.671 §17; renumbered 520.230]renumbered

No operative statutory text appears at this designation in the selected edition.

520.090 [Repealed by 1953 c.667 §21]repealed

No operative statutory text appears at this designation in the selected edition.

520.095 Rules and orders; bond

The governing board of the State Department of Geology and Mineral Industries may adopt rules and issue orders, and the department may issue orders, as may be necessary in the proper administration and enforcement of this chapter, including but not limited to rules and orders for the following purposes: To require the drilling, casing and plugging of wells …

520.097 Abandonment or completion of well; well logs and records; trade secrets

For a period of two years from the date of abandonment or completion of a well, all well logs and records and well reports submitted to the State Department of Geology and Mineral Industries are trade secrets under ORS 192.345 and are not subject to public disclosure under ORS 192.311 to 192.478, and all drill cuttings and cores may not be disclosed to the p…

520.100 [Repealed by 1953 c.667 §21]repealed

No operative statutory text appears at this designation in the selected edition.

520.105 [1953 c.667 §11; 1961 c.671 §19; repealed by 2007 c.672 §24]repealed

No operative statutory text appears at this designation in the selected edition.

520.110 [Repealed by 1953 c.667 §21]repealed

No operative statutory text appears at this designation in the selected edition.

520.115 [1953 c.667 §12; repealed by 2007 c.672 §24]repealed

No operative statutory text appears at this designation in the selected edition.

520.120 [Repealed by 1953 c.667 §21]repealed

No operative statutory text appears at this designation in the selected edition.

520.125 Authority of board to summon witnesses and require production of evidence

The governing board of the State Department of Geology and Mineral Industries may summon witnesses, administer oaths and require the production of records, books and documents for examination at any hearing or investigation conducted before the board. In case of failure or refusal on the part of any person to comply with the subpoena issued by the board or …

520.130 [Repealed by 1953 c.667 §21]repealed

No operative statutory text appears at this designation in the selected edition.

520.135 [1953 c.667 §14; repealed by 2007 c.672 §24]repealed

No operative statutory text appears at this designation in the selected edition.

520.145 Judicial review of board or department actions

Any person adversely affected by any rule adopted by the governing board of the State Department of Geology and Mineral Industries under this chapter or any order issued by the board or the State Department of Geology and Mineral Industries under this chapter may obtain judicial review thereof pursuant to ORS chapter 183.

520.155 Records, accounts, reports and writings not to be falsified, altered, destroyed or removed from state

A person may not, for the purpose of evading the provisions of this chapter or any rule adopted or order issued under this chapter, make or cause to be made any false entry or statement in a report required by this chapter or by any rule or order under this chapter, make or cause to be made any false entry in any record, account or other writing required by …

520.165 Aiding or abetting in violation of chapter prohibited

A person may not knowingly aid or abet any other person in the violation of any provision of this chapter or any rule adopted or order issued under this chapter.

520.175 Injunctions to restrain violation or threatened violation of chapter

Whenever it appears that any person is violating or threatening to violate any provision of this chapter or any rule adopted or order issued under this chapter, the governing board of the State Department of Geology and Mineral Industries may bring an action against such person in the circuit court of any county where the violation occurs or is threatened, t…

520.210 Establishment of spacing units for pool or field; purpose; scope; effect

When necessary to prevent waste of oil or gas, to avoid the drilling of unnecessary wells or to protect correlative rights, the governing board of the State Department of Geology and Mineral Industries shall establish spacing units for a pool or field. Spacing units when established shall be of uniform size and shape for the entire pool or field, except that…

520.220 Integrating interests or tracts within spacing unit

When two or more separately owned tracts are embraced within a spacing unit or when there are separately owned interests in all or a part of such spacing unit, then the interested persons may integrate their tracts or interests for the development and operation of the spacing unit. In the absence of voluntary integration, the governing board of the State De…

520.230 Approved agreement for cooperative or unit development of pool not to be construed as violating certain regulatory laws

An agreement for the unit or cooperative development and operation of a field or pool in connection with the conduct of repressuring or pressure maintenance operations, cycling or recycling operations, including the extraction and separation of liquid hydrocarbons from natural gas in connection therewith, or any other method of operation, including water flo…

520.240 Voluntary unitization of operations by lessees of tidal or submersible lands; Department of State Lands’ function

For the purpose of properly conserving the natural resources of any single oil or gas pool or field, lessees under ORS 274.705 to 274.860 and their representatives may unite with each other jointly or separately, or jointly or separately with others owning or operating lands not belonging to the state, in collectively adopting and operating under a cooperati…

520.260 Hearing to determine need for unitization of operations; required findings; order

The governing board of the State Department of Geology and Mineral Industries upon its own motion may, and upon the application of any interested person shall, hold a hearing to consider the need for the operation as a unit of one or more pools or parts thereof in a field. The board shall make an order providing for the unit operation of a pool or part ther…

520.270 Plan for unit operations

An order issued pursuant to ORS 520.260 shall be upon terms and conditions that are just and reasonable, and shall prescribe a plan for unit operations that includes the following: A description of the pool or pools or parts thereof to be so operated. A statement of the nature of the operations contemplated. An allocation to the separately owned tracts in…

520.280 Allocation of production under plan; ownership

The allocation described in ORS 520.270 (3) shall be in accord with the agreement, if any, of the interested parties. If there is no such agreement, the governing board of the State Department of Geology and Mineral Industries shall determine the relative value, from evidence introduced at the hearing, of the separately owned tracts in the unit area, exclusi…

520.290 When unitization order to become effective; supplemental hearings

No order of the governing board of the State Department of Geology and Mineral Industries providing for unit operations is effective until: The plan for unit operations prescribed by the board under ORS 520.270 has been approved in writing by (A) those owners who, under the board’s order, will be required to pay at least 75 percent of the costs of the unit …

520.300 Amending unitization order

An order providing for unit operations may be amended by an order made by the governing board of the State Department of Geology and Mineral Industries in the same manner and subject to the same conditions as an original order providing for unit operations. However: If the amendment affects only the rights and interests of the owners, the approval of the am…

520.310 Unitization of area including area previously unitized; partial unitization of pool

The governing board of the State Department of Geology and Mineral Industries by order may provide for the unit operation of a pool or pools or parts thereof that embrace a unit area established by a previous order of the board. The order, in providing for the allocation of unit production, shall first treat as a single tract the unit area previously establi…

520.320 Unitization order does not terminate prior agreements or affect oil and gas rights; acquisition of property during unit operations

No division order or other contract relating to the sale or purchase of production from a separately owned tract may be terminated by the order providing for unit operations, but remains in force and applies to oil and gas allocated to that tract until terminated in accordance with the provisions thereof. Except to the extent that the parties affected so ag…

520.330 Effect of operations in unit area

All operations, including but not limited to the commencement, drilling or operation of a well, upon any portion of the unit area, are considered for all purposes the conduct of such operations upon each separately owned tract in the unit area by the several owners thereof. The portion of the unit production allocated to a separately owned tract in a unit ar…

520.340 Legislative findings

The underground storage of natural gas in Oregon is found by the Legislative Assembly to be in the public interest in that the establishment of underground reservoirs of natural gas will help insure the continued, uninterrupted availability of natural gas supplies to residential, commercial and industrial consumers in Oregon during periods of peak demand and…

520.350 Property rights in underground reservoirs for natural gas storage

All natural gas in an underground reservoir utilized for underground storage, whether acquired by eminent domain or otherwise, shall at all times be the property of the natural gas company utilizing said underground storage, its heirs, successors, or assigns. In no event shall such gas be subject to the rights of the owner of the surface of the land under wh…

520.990 [Repealed by 1953 c.667 §21]repealed

No operative statutory text appears at this designation in the selected edition.

520.991 Penalties

Subject to ORS 153.022, violation of any provision of this chapter, any rule adopted by the governing board of the State Department of Geology and Mineral Industries under this chapter or any order issued by the board or the State Department of Geology and Mineral Industries under this chapter is a Class B misdemeanor. CHAPTER 521 [Reserved for expansion] …