Current through Register Vol. 47, No. 17, September 10, 2024
a. A permit application for a Geothermal
Resource Unit may request the inclusion of Allocated Geothermal Resources owned
by unleased interest owners in the GRU, provided that the unleased interest
owners are equitably compensated by the Operator for use of those Allocated
Geothermal Resources.
b. In its
permit application for a Geothermal Resource Unit which includes a request that
the Commission include Allocated Geothermal Resources owned by unleased
interest owners, the Operator will include the following:
(1) Evidence that the Operator owns, or has
secured the written consent of Owners of more than 45% of the Allocated
Geothermal Resources to be included within the proposed Geothermal Resource
Unit. Such evidence may be provided prior to or after drilling of a well, but
no later than 90 days in advance of the date the matter is to be decided by the
Director or Commission pursuant to Rule 510.
(2) Evidence that the Operator tendered to
the unleased interest owners a good faith, reasonable offer to lease or
participate at least 90 days prior to the decision on the Geothermal Resource
Unit. For the purposes of this Rule 1310, "good faith" means a state of mind
consisting in observance of reasonable commercial standards of fair dealing in
Deep Geothermal Operations, and absence of intent to defraud or seek
unconscionable advantage.
(3) A
proposed plan for equitable compensation to any impacted interest Owner of an
Allocated Geothermal Resource to be included in the Geothermal Resource
Unit.
c. Upon a showing
by the applicant that it has complied with the Commission's rules, the Director
or Commission may deem an Owner to be a nonconsenting interest owner in the
Geothermal Resource Unit if:
(1) The Operator
certifies that it provided notice to all nonconsenting interest owners to be
included within the proposed Geothermal Resource Unit. The Operators will
comply with Rule 303.e.(3) for the procedure for providing notice. The notice
must include:
A. The Operator's contact
information including its electronic mail address, phone number, and physical
address(es) to which the public may direct questions and comments;
B. The Operator's proposed plan for equitable
compensation for all Geothermal Resources to be included in the Geothermal
Resource Unit;
C. ECMC's
information sheet about the procedural steps involved with the Director's and
Commission's review of permit application for the Geothermal Resource
Unit;
D. ECMC's information sheet
about the Commission's public comment process and the relevant
deadlines;
E. ECMC's information
sheet about how the public may view the status of the permit application for
the Geothermal Resource Unit on the Commission's website; and
F. Information on how the public may learn
more details about and ask questions about the permit application for the
Geothermal Resource Unit prior to the closure of the public comment
period.
G. All written information
provided pursuant to this Rule 1310.c.(1) will also be provided in all
languages spoken by 5% or more of the population in all census block groups
within 2,000 feet of each proposed Geothermal Resource Unit.
(2) After receiving an offer to
participate, and being given at least 60 days to review the offer, the Owner
does not elect in writing to consent to participate in the cost of the Well(s)
concerning which the Geothermal Resource Unit order is sought. The offer to
participate will include the following information, at a minimum:
A. The location and objective depth of the
Well(s).
i. Directional Wells will include the
estimated measured depth and true vertical depth ("md", "tvd"); and
ii. Horizontal Wells will include the
estimated measured depth, true vertical depth, and lateral length ("md", "tvd",
and "ll");
B. The
estimated drilling and completion cost in dollars of the Well(s) (both the
total cost and the Owner's share);
C. The estimated spud date for the Well(s) or
range of time within which spudding is to occur; and
D. Contact information for an Operator
representative who will be available to answer Owner questions, and ECMC's
brochure describing its procedures for reviewing and approving applications for
Geothermal Resource Units which include nonconsenting interest
owners.
E. An authority for
expenditure prepared by the Operator and containing the information required
above, together with additional information deemed appropriate by the Operator
may satisfy these obligations.
(3) If, after receiving a good faith offer to
lease and given at least 60 days to review the offer, the unleased interest
owner has failed to accept or refused a reasonable offer to lease.
(4) For an offer to lease to be considered
reasonable and have been made in good faith, the offer will be written in clear
and neutral language and include information on which the offered price can be
determined to be fair. At any hearing or in written comment on the Geothermal
Resource Unit, the burden of showing that an offer to lease is not reasonable
or not made in good faith is upon the Owner of the Allocated Geothermal
Resources who opposes inclusion in the Geothermal Resource Unit.
d. A nonconsenting interest owner
will be subject to cost recovery.
e.
Consideration and Approval or
Denial. A permit application for a Geothermal Resource Unit that will
include nonconsenting interest owners will be considered concurrently with the
associated permit application for the GRU, pursuant to Rule 1309. If an
Operator submits a permit application to include nonconsenting interest owners
after approval of a GRU, the permit application to include nonconsenting
interest owners is subject to the approval or denial provisions of Rule
1305.e.
