Oregon Revised Statutes
As used in this chapter, unless the context requires otherwise: “Board” means the governing board of the State Department of Geology and Mineral Industries. “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 th…
The Legislative Assembly hereby finds and declares that: The people of the State of Oregon have a direct and primary interest in the development of geothermal resources situated in this state. 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 …
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522.015 all geothermal fluids derived from geothermal resources shall be reinjected into the same reservoir from which withdrawn unless it is determined by the State Department of Geology and Mineral Industries that these policies and the public interest require other disposal of the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. Subject to the determinat…
The provisions of this chapter relating to the location and drilling of any well for the production of geothermal resources do not apply to any wells producing geothermal resources on July 1, 1975, or wells, other than prospect wells, where: The geothermal fluids produced are of less than 250 degrees Fahrenheit bottom hole temperature; or Such fluids have …
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.
Any well drilled under authority of this chapter from which usable geothermal resources cannot be derived, or the owner or operator has no intention of deriving usable geothermal resources, and that is not expected to provide information useful to the development of geothermal resources shall be plugged and decommissioned as provided in this chapter or, upon…
PROSPECT WELLS
A person may not engage in drilling a prospect well except in compliance with a permit issued by the State Department of Geology and Mineral Industries under this section. An application for a permit to drill prospect wells must include: A plugging and decommissioning plan; Such other information as the department by rule may require to assess the impacts…
Upon receipt of a complete application to drill prospect wells, the State Department of Geology and Mineral Industries shall circulate copies of the application to the Water Resources Department, the Department of Environmental Quality, the Department of Land Conservation and Development and the Department of State Lands. The State Department of Geology and …
The State Department of Geology and Mineral Industries may not issue a permit for a prospect well until the applicant has provided a bond or alternative form of financial security as specified in rules adopted by the governing board of the State Department of Geology and Mineral Industries. The amount of the bond or alternative form of financial security ma…
In addition to any other liability imposed by law, the operator of a prospect well shall be liable to any person or public agency that sustains damages from failure of the operator to comply with: A condition in a permit requiring the operator to provide for the protection of ground water in the area affected by the well; or Any rules of the governing boar…
Upon completion of all drilling and testing undertaken pursuant to an application to drill prospect wells, the applicant shall file with the State Department of Geology and Mineral Industries a report certifying the completion of the plugging and decommissioning plan required by the permit.
GEOTHERMAL WELLS
A person may not engage in the drilling or operating of any geothermal well except in compliance with a permit issued by the State Department of Geology and Mineral Industries under this section. An application for a permit to drill or operate a geothermal well must include: The location and elevation of the floor of the proposed derrick. The number or ot…
Upon receipt of a complete application for a permit to drill or operate a geothermal well, the State Department of Geology and Mineral Industries shall circulate copies of the application to the Water Resources Department, the State Department of Fish and Wildlife, the Department of Environmental Quality, the State Parks and Recreation Department, the Depart…
Within 60 days after receipt of a complete application for a permit to drill or operate a geothermal well, the State Department of Geology and Mineral Industries shall by order issue or deny the permit unless the department determines that a longer period is necessary to respond to comments or new information or for other good cause. Except as provided in O…
The State Department of Geology and Mineral Industries may not issue a permit for a geothermal well until the applicant has provided a bond or alternative form of financial security as specified in rules adopted by the governing board of the State Department of Geology and Mineral Industries. The amount of the bond or alternative form of financial security …
In addition to any other liability imposed by law, the operator of a geothermal well shall be liable to any person or public agency that sustains damages from failure of the operator to comply with: A condition in a permit requiring the operator to provide for the protection of ground water in the area affected by the well; or Any rules of the governing bo…
A permittee must make a request to modify a permit before changing the location, number or designation specified for any geothermal well or before undertaking to alter in any manner the casing of a geothermal well. A request to modify a permit under this section, except for changes to a well name, shall be accompanied by the nonrefundable fee specified in O…
No person shall abandon a geothermal well without first plugging and decommissioning the well in conformance with a plugging and decommissioning plan approved by the State Department of Geology and Mineral Industries and complying with the provisions of ORS 522.245. The governing board of the department shall adopt rules designed to: Protect underground an…
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.
Except as excluded from the provisions of this section by rule of the governing board of the State Department of Geology and Mineral Industries, any prospective operator of a geothermal well shall notify the department in such form as the department may direct of the purchase, assignment, transfer, conveyance or exchange of the well within 45 days of the pur…
No operator shall suspend drilling or operation of a geothermal well without obtaining permission from the State Department of Geology and Mineral Industries. 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…
Before commencing any operation to discontinue the use of a geothermal well, the operator shall give notice to the State Department of Geology and Mineral Industries of the intention to plug and decommission the well and the date upon which the work will begin. Such notice shall be given at least 24 hours before the commencement of plugging and decommission…
A representative of the State Department of Geology and Mineral Industries may be present during any operation to plug and decommission a geothermal well. If the representative determines that the plugging and decommissioning is satisfactory, the representative shall approve the plugging and decommissioning of the well. Within 45 days after the completion o…
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 …
ADMINISTRATION
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.
In accordance with the applicable provisions of ORS chapter 183, the governing board of the State Department of Geology and Mineral Industries may adopt rules necessary to implement the provisions of this chapter. This authority includes, but is not limited to, rules relating to: Establishing procedures for the issuance, modification, transfer, denial, susp…
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.
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…
WELL RECORDS
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. 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,…
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 geotherma…
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 intereste…
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: A description of the geothermal reservoir and the overlaying land to be operated as a unit. A statement of the nature of the operations contemplated. A provision for credits and charg…
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: Division of a reservoir into zones; Establishment of spacing units, including a description of their location, size and shape; The integration of separately owned trac…
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.
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: The operators who will be required to pay under…
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 …
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 th…
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 are…
Subject to the same conditions and limitations provided with respect to the creation of a unit, the following may occur: 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 The …
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 wel…
The operation of a geothermal well in a unit area by anyone other than by a person or state or local governing body, special district or agency acting under the unit’s authority shall be unlawful. That operation is prohibited from the effective date of the board rule or order creating the unit and prescribing the unitization plan or the unit agreement, excep…
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 59.505, 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 i…
Board authority applies to all private, municipal, state and federal land in the state which is subject to the state’s regulatory authority. When land subject to federal jurisdiction is committed to a unit agreement or cooperative agreement the board may suspend the operation of this chapter or any provision of this chapter if: The unit operation is regulat…
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 develop…
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: To review and enforce voluntary unit agreements governing production of geothermal resources in a manner that is consistent with the provisions of this chapter. To provide application forms…
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 viol…
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,…
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.
No person shall: 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; 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 pu…
PENALTIES
Subject to ORS 153.022, violation of any provision of this chapter or of any rule or order of the governing board of the State Department of Geology and Mineral Industries made thereunder, excluding ORS 522.405 to 522.545 and any rule promulgated thereunder, is a Class B misdemeanor. _______________