ORS 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 (Definitions for ORS 273.775 to 273.790), 308A.050 (Legislative intent) to 308A.128 (Certain district assessments inapplicable to exclusive farm use zone farmland), 522.005 (Definitions), 522.015 (Policy), 522.405 (Unitization) to 522.545 (Rulemaking authority), 522.815 (Rules by board) and 522.990 (Penalties). 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 (Policy). 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 (Definitions for ORS 273.775 to 273.790), 308A.050 (Legislative intent) to 308A.128 (Certain district assessments inapplicable to exclusive farm use zone farmland), 522.005 (Definitions), 522.015 (Policy), 522.405 (Unitization) to 522.545 (Rulemaking authority), 522.815 (Rules by board) and 522.990 (Penalties).

(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]

Source: Section 522.405 — Unitization; development of unit agreement; rules, https://www.­oregonlegislature.­gov/bills_laws/ors/ors522.­html.

522.005
Definitions
522.015
Policy
522.019
Injection of geothermal fluids
522.025
Application
522.035
Ownership rights
522.045
Decommissioned well
522.055
Permit
522.065
Circulation of application to state agencies
522.075
Bond or security
522.080
Operator liability
522.085
Report certifying completion of decommissioning plan
522.115
Permit
522.125
Circulation of application to state agencies
522.135
Permit
522.145
Bond or security
522.155
Liability for failure to protect ground water and surface water
522.165
Request for permit modification
522.175
Plugging and decommissioning
522.195
Monthly production statement
522.205
Notice by prospective operator of transfer or purchase of well
522.215
Suspension of drilling or operation
522.225
Notice of intent to plug and decommission
522.245
Department approval of plugging and decommissioning
522.255
Resolution of conflicts between geothermal and water uses
522.275
Administration by State Geologist
522.305
Rules
522.315
Final order of department
522.325
Compliance with final order
522.355
Records of well
522.365
Filing record with department
522.405
Unitization
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
522.465
Appointment of unit operator
522.475
Board review of disputes over unit operation
522.485
Amendment of unitization plan
522.495
Presumptions regarding conduct of operation
522.505
Unauthorized operation in unit area prohibited
522.515
When agreement or plan held not to violate state securities or trade law
522.525
Land subject to board authority
522.535
Fees
522.545
Rulemaking authority
522.810
Suits to enjoin violations
522.815
Rules by board
522.910
Aiding in violations prohibited
522.915
False entries, omissions, destruction or removal of records or reports
522.990
Penalties
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