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State
Oregon Regulations
CHAP 141 DIVISION 10 GENERAL




The Oregon Administrative Rules contain OARs filed through July 14, 2006

DEPARTMENT OF STATE LANDS


DIVISION 10
GENERAL





141-010-0005

Definitions

"Board" means the State Land Board.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 6, f. & ef. 9-17-64



141-010-0010

Sealed Bids Required

The leasing of offshore tracts for the production of oil, gas, and sulphur shall be by sealed bids. Bids shall be submitted on forms supplied by the Board, or image copies thereof. To be considered, bids shall be received at the office of the Board, 106 State Capitol, Salem, OR 97310, before the time designated in the public notice of the offer to lease.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 6, f. & ef. 9-17-64



141-010-0015

Lease Map

Reference to the tract number as designated on the official lease map adopted by the Board on January 3, 1964, and any subsequent revisions shall constitute sufficient description for bidding and leasing purposes. The successful bidder will assume full responsibility for any location surveys to determine precise boundaries of the tracts offered for lease. Copies of the official lease map may be inspected at the Board office or may be purchased for $15 per copy. No bid for less than a full tract, as delineated on the official lease map, will be considered. For the purposes of computing the annual rental of each leased tract, the acreage shown on the official lease map shall be used.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 6, f. & ef. 9-17-64



141-010-0020

Bidding Procedure

(1) When a bid or bids are submitted in person to the Board, name and address of the bidder and the number of tract bid on shall be designated on the envelope sealing each bid.

(2) When a bid or bids are submitted by mail, each bid shall be placed in a separate sealed envelope with the name and address of the bidder and the number of the tract identified on the outside of each separate bid envelope. The bid envelope or envelopes shall then be placed into a larger envelope, addressed and forwarded to the Board with the notation on the outer envelope that it contains a sealed bid or bids.

(3) Unless the tract is withdrawn from bidding, or unless the Board refuses all bids upon a particular tract, the lease shall be awarded to the bidder offering the highest cash bonus bid. In the event the highest bids are tie bids, tie bidders may file with the Board within 15 days after notification an agreement to accept the lease jointly; otherwise, all bids will be rejected.

(4) No variation shall be made in the prescribed form of the bid, and the insertion of any condition, qualification, or provisions of said form will invalidate the bid. The amount of cash bonus offered shall be stated in the designated place on the bid form and a certified or cashier's check made payable to the State of Oregon in an amount sufficient to cover the first year's rental in advance, plus 1/5 of the amount of cash bonus offered, plus $100 fee to cover the cost of advertisement shall be enclosed with the bid.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 6 f. & ef. 9-17-64; LB 7, f. & ef. 10-22-64



141-010-0025

Authorization

Bids submitted by corporations or partnerships shall contain an affidavit or a certificate of authority verifying that the company official, agent, or partner signing the lease and bid offer is duly authorized to enter into such a contract for the bidder.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 6, f. & ef. 9-17-64; LB 7, f. & ef. 10-22-64



141-010-0030

Financial Statement

A certified financial statement establishing to the satisfaction of the Board the bidder's financial ability to undertake and fulfill all obligations under the prospective lease must accompany the bid. The findings of the Board as to whether the bidder has the financial ability to undertake and fulfill all obligations under the prospective lease shall be final and conclusive.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 6 f. & ef. 9-17-64; LB 7, f. & ef. 10-22-64

141-010-0035

Refund

Checks enclosed with the bids will be returned to the bidders upon request, except in the case of the successful bidder. Such requests are to be submitted on a form supplied by the Board. The execution of a request for refund shall be determined a withdrawal of the bidder's offer and a waiver of all rights the bidder may have in connection with or by virtue of said bid.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 6, f. & ef. 9-17-64



141-010-0040

Forms

Form SLB1, 10-21-64. Bid Form; Oil, Gas and Sulphur Lease; and Form SLB2, 10-21-64, Request for Return of Deposit, copies of which are attached hereto and by this reference made a part hereof, are hereby adopted and prescribed by the State Land Board

[Publications: The publication(s) referred to or incorporated by reference in this rule are available from the agency.]

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 6, f. & ef. 9-17-64; LB 7, f. & ef. 10-22-64



Off Shore Geological, Geophysical and Seismic Surveys


141-010-0201

Authority and Purpose

(1) These rules are adopted under authority of ORS 274 .705 - 274.860 relating to exploration and development of offshore oil, gas and related sulphur resources. These rules do not apply to offshore exploration of hard minerals or to scientific research sponsored by academic institutions.

(2) It is the purpose of these rules to provide a uniform procedure for issuing non-exclusive permits to survey state-owned submerged and submersible lands by geological and geophysical (including seismic) methods to determine the potential of such lands for development of oil, gas and sulphur resources. Issuance of a permit under these rules does not confer any leasing rights or preferences in or to the subject property and does not affect requirements that the permittee obtain any other applicable regulatory permits from the Division of State Lands, or other agencies.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 7-1986, f. & ef. 7-18-86



141-010-0205

Definitions

(1) "Applicant" -- Person who submits an application for a permit under these rules.

(2) "Aggrieved Person" -- Any person who has submitted comments on an application pursuant to OAR 141-010-0230, and who objects to issuance of a permit or any terms or conditions of the permit.

(3) "Board" -- State Land Board.

(4) "Director" -- Director of the Division of State Lands.

(5) "Division" -- Division of State Lands.

(6) "Exploration" -- Geological or geophysical surveys conducted pursuant to these rules.

(7) "Geological Surveys" -- Use of grab samples, geochemical sampling, and similar geological techniques to obtain information and data on oil, gas or sulphur resources.

(8) "Geophysical Surveys" -- Use of magnetic, gravitational, seismic, and similar geophysical techniques to obtain information and data on oil, gas or sulphur resources. Seismic techniques include, but are not limited to, use of sparkers and acoustical pulse generators. For purposes of these rules, seismic does not include the use of explosives.

NOTE: Under ORS 274 .735 - 274.745, the director is authorized to issue permits for "geological, geophysical and seismic" surveys. As indicated in these definitions, seismic surveys are a form of geophysical surveys and are intended to be included in any reference to geophysical surveys.)

(9) "Nearshore" -- Tidal submerged lands (see OAR 141-010-0205(12)) and all state-owned submerged and submersible lands lying west of a line ten miles easterly of the 124th Meridian, and the waters above them.

(10) "Permittee" -- Holder of a permit issued under these rules.

(11) "Person" -- A natural person, corporation, association, firm, partnership, joint stock company, quasi-public corporation, political subdivision, and governmental agencies or instrumentalities.

(12) "Tidal Submerged Lands" -- Lands lying below the line of Mean Low Tide in the beds of all tidal waters within the boundaries of this state as heretofore or hereafter established.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 7-1986, f. & ef. 7-18-86



141-010-0210

Permit Requirement and Jurisdiction

(1) A permit is required to conduct any geological or geophysical survey on lands subject to these rules. Lands subject to these rules include tidal submerged lands and all state-owned submerged and submersible lands lying west of a line ten miles easterly of the 124th Meridian (see ORS 274 .710).

(2) No permit shall be issued under these rules for surveys using dynamite, TNT, or other forms of explosives.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 7-1986, f. & ef. 7-18-86



141-010-0215

Permit Regions

(1) For purposes of these rules, the lands subject to permits are divided into five regions, as described below:

(a) Region I: from the Oregon-California Border to Cape Blanco;

(b) Region II: from Cape Blanco to Cape Perpetua;

(c) Region III: from Cape Perpetua to Cape Falcon;

(d) Region IV: from Cape Falcon to the Oregon-Washington border;

(e) Region V: the Columbia River from its mouth to a line 10 miles east of the 124th Meridian.

(2) If survey activities are proposed by a single applicant for more than one Region, separate applications and fees must be submitted for each Region.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 7-1986, f. & ef. 7-18-86



141-010-0220

Permit Application

A permit application shall be submitted on a form provided by the division and shall include the following:

(1) The name and address of the applicant;

(2) The name and registration number of the vessel(s) to be used in conducting the proposed survey if known at the time of application (if the particular vessel is not known at the time of application, the applicant shall provide the name of the vessel at or before the time notice is given under OAR 141-010-0250);

(3) Identification of the region and specific site(s) proposed for survey (if specific survey sites are unknown at the time of application, such information shall be provided at or before the time notice is given under OAR 141-010-0250);

(4) If the area is subject to a current oil and gas, or other submerged/submersible land lease, evidence of written notice to the lessee of the permit application;

(5) A description of the type of survey to be conducted, including the techniques to be used;

(6) An application fee of $500;

(7) Any other information specified by the director.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 7-1986, f. & ef. 7-18-86



141-010-0230

Permit Review Process

(1) Within ten working days after receipt of a completed application, the division shall:

(a) Circulate the application for review and comment to:

(A) The Department of Fish and Wildlife;

(B) The Department of Geology and Mineral Industries;

(C) The Department of Land Conservation and Development;

(D) The State Historic Preservation Officer;

(E) Any other state agency the director determines may be affected by the proposed survey.

(b) Provided written notice of the application to:

(A) The governing body of each county within the proposed survey region;

(B) Any person who has requested notice from the director of permit applications;

(C) The general public, by publication once in a newspaper of general circulation in the region proposed for survey.

(2) Comment by state agencies:

(a) Within ten working days after the date an application is circulated by the Division, a state agency may request the Division, to obtain additional information from the applicant. The Division shall forward the request to the applicant and shall forward a copy of the response to the requesting agency;

(b) When additional information is requested, the agency shall have 20 working days after the date the additional information is forwarded by the Division in which to submit written comments and recommendations for permit conditions, if any;

(c) When additional information is not requested, the agency shall have 20 working days after the date the application is circulated in which to submit written comments and recommendations for permit conditions, if any.

(3) Comment by other than state agencies:

(a) Persons other than state agencies shall have 30 days after the date of notice of the application in which to submit written comments to the Division;

(b) Within 15 days of publication of the notice, as required in subsection (1)(b)(C), any person may request a public hearing on the application. A request for hearing shall be submitted to the director, in writing. The director shall have discretion to decide whether a public hearing shall be held. If held, the public hearing shall take place within 15 days of receipt of the written request. The director shall provide appropriate public notice of the hearing.

(4) Within 20 working days from the close of the comment periods provided in section (3) of this rule, the Division shall:

(a) Review the comments;

(b) Take action on the application request; and

(c) Give written notice of the action to the applicant and each state agency and person who has submitted written comments on the application.

(5) Within ten working days of the date of notice of action on the application, the applicant or any aggrieved person may request a hearing from the director:

(a) The request shall be in writing and shall state the specific nature of the objection;

(b) When requested by the applicant, the hearing shall be scheduled within 45 days of the written request;

(c) When requested by a person other than the applicant, the director shall have discretion to decide whether a hearing shall be held. If held, the hearing shall take place within 45 days of receipt of the request. The applicant shall have the opportunity to participate as a party in the hearing;

(d) The hearing shall be conducted as a contested case hearing and shall be subject to the applicable provisions of ORS 183.413 - 183.497;

(e) A final order shall be issued by the director within 20 working days of the close of the hearing record.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 7-1986, f. & ef. 7-18-86



141-010-0235

Land Use Review

(1) Before taking action on any permit application, the director shall determine whether the proposed activity affects land use and if so, complies with applicable provisions of the Oregon Statewide Planning Goals adopted by the Land Conservation and Development Commission. Of particular concern are Statewide Planning Goal 16, relating to estuaries, and Goal 19, relating to ocean resources:

(a) The director shall determine that a proposed activity affects land use, and is therefore subject to applicable Statewide Planning Goals, when the activity is reasonably likely to have a significant impact on uses of the nearshore for fishing, navigation, recreation or aesthetic purposes, or on long-term protection of renewable resources;

(b) In determining whether a proposed activity affects land use, the director shall consider:

(A) Duration or frequency of the activity;

(B) Extent of impacts;

(C) Intensity of impacts;

(D) Timing or scheduling of the activity;

(E) Location in relation to sensitive resources;

(F) Potential for conflicts with other uses.

(2) If the director finds a proposed activity affecting land use does not comply with any applicable goal provision, the director shall deny the permit or impose appropriate conditions to assure goal compliance.

(3) In developing such findings or conditions, the director may rely on the written findings of other affected state agencies, such as the Department of Fish and Wildlife, the Department of Geology and Mineral Industries, and the Department of Land Conservation and Development.

(4) In responding to the inventory requirements of Statewide Planning Goals 16 and 19, the director may rely on existing available data and studies. Survey results obtained by the director pursuant to OAR 141-010-0270 shall be used to expand and update the inventories.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 7-1986, f. & ef. 7-18-86



141-010-0240

Term

The permit period shall not exceed two years. If circumstances have not materially changed, the permit may be renewed for like periods upon application to the Division and upon showing due compliance with the original permit and applicable laws and regulations. Renewal applications shall be submitted to the Division at least 90 days before the expiration of the permit.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 7-1986, f. & ef. 7-18-86



141-010-0250

Notice

(1) At least 15 days before commencing a survey, the permittee shall provide notice as follows:

(a) For all surveys, written notice of the specific survey site, including tract lines (if applicable), method of operation, vessel name, and contact person on board the vessel to the Division, Department of Fish and Wildlife, Department of Geology and Mineral Industries, and any other state agencies specified in the permit. The director shall take action on the notice as provided in OAR 141-010-0260(2)(k).

(b) For surveys involving towed cables or equipment, public notice by publication in a newspaper of general circulation in the survey region, and posted notice at various waterfront locations within the survey region, such as bait shops, fuel docks and the harbormaster's office.

(2) The posted and public notice shall include, but not be limited to, the following information:

(a) The general area of the survey, including the survey boundaries, the date(s) on which activities will occur, and the hours of operation;

(b) The methods of survey, including length, width and depth of cable and equipment in tow, if applicable;

(c) The name, registration number, radio call number, monitoring channel, and name of the captain of the survey vessel;

(d) The name and address of the permittee and the name and phone number of a local contact person;

(e) A statement that additional information may be obtained from the permittee or the Division.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 7-1986, f. & ef. 7-18-86



141-010-0260

Permit Conditions

(1) In issuing a permit, the director shall include conditions proper to safeguard the interests of the state.

(2) Each permit shall include, but not be limited to, the following minimum conditions:

(a) The permittee shall provide and maintain until the termination of the permit a faithful performance bond or cash deposit in the amount of $25,000. The state reserves the right to approve the surety company. Approval shall not be unreasonably withheld. The bond shall be in favor of the State of Oregon acting by and through the Division of State Lands. The bond shall guarantee the faithful performance by the permittee of the permit and all applicable statutes and rules promulgated thereunder. The bond shall require the surety to give at least 90 days' written notice of its intention to cease acting as guarantor. If a surety gives notice of its intention to cease acting as guarantor, the permittee shall provide to the state within 60 days of such notice a replacement bond or cash deposit of equal value to become effective upon the expiration of the existing bond;

(b) The permittee shall furnish a certificate of insurance or self-insurance showing that, at all times throughout the life of the permit, the permittee and all of its subcontractors and agents are insured for personal injury and property damage to third persons resulting from operations under the permit. The insurance shall include coverage for damage caused by pollution or contamination whether occurring suddenly and accidentally or over a period of time. The insurance shall be for an amount not less than $1,000,000 for each occurrence. The insurance company or self-insurance program shall be subject to approval by the State. Approval shall not be unreasonably withheld. The required coverages shall include the State of Oregon as an additional insured. The certificate of insurance or self-insured plan shall contain a 30 day notice of cancellation or material change;

(c) Before commencing a survey, the permittee shall provide notice as required in OAR 141-010-0250;

(d) Before commencing a survey, the permittee shall visually observe the area around the vessel and shall begin survey activities only when no whales are observed within two miles. For surveys occurring between April 15 and July 31 in the following locations, permittee shall also observe for Steller sea lions, and shall not begin the survey if Steller sea lions are observed within two miles:

(A) Orford Reef (42°46'30" North Latitude to 42°47'40" North Latitude; 124°35'30" West Longitude to 124°36'40" West Longitude);

(B) Rogue Reef (42°26'40" North Latitude to 42°28'00" North Latitude; 124°28'00" West Longitude to 124°30'30" West Longitude);

(C) Upon evidence satisfactory to the Oregon Department of Fish and Wildlife that there are no adverse impacts to Steller sea lions as a result of geological or geophysical surveys, the director may delete this permit condition.

(e) Before commencing a survey, the permittee shall attempt to communicate to all vessels in the path and vicinity of the survey vessel:

(A) The name of the survey vessel;

(B) The radio call signals and monitoring channel;

(C) The time of commencement of surveying in the area;

(D) The name of the contact person on board the survey vessel.

(f) Surveys shall be conducted in compliance with all terms and conditions of the permit, and all federal, state, and local laws and administrative rules which are applicable to such operations;

(g) Surveys shall be conducted so that activities do not:

(A) Endanger or unreasonably interfere with operations under any lease issued by the Division;

(B) Cause substantial harm or damage to aquatic life;

(C) Create hazardous or unsafe conditions;

(D) Endanger or unreasonably interfere with other uses in the area; or

(E) Destroy or damage historical or cultural resources identified in the permit.

(h) The permittee shall immediately cease operations which create a threat of serious harm or damage to life (including fish and other aquatic life), property, mineral deposits, or marine, coastal, or human environments;

(i) The permittee shall submit reports on permit operations in accordance with OAR 141-010-0270;

(j) The permittee shall indemnify and hold harmless the State of Oregon, its officers, agents, employees, and members from all claims, suits, or actions, of whatsoever nature, resulting from or arising out of activities of the permittee, or its subcontractors, agents, or employees, under this permit;

(k) Upon receipt of site specific information under the notice provisions of OAR 141-010-0250, the director may amend any condition of the permit or impose additional conditions to mitigate site specific adverse impacts or use conflicts, if any. If the director determines there are adverse impacts or use conflicts which cannot be satisfactorily mitigated by permit conditions, the director may deny permission to survey in a particular location. The director shall provide written notice of amended and additional permit conditions, or denial of permission to survey within ten days after receipt of the site specific information. The notice shall contain specific reasons for the director's action. Within ten days of such notice, permittee may request a contested case hearing as provided in OAR 183.413 - 183.497;

(l) A permit is nonexclusive and does not give a preference right to any oil, gas and sulphur or other mineral lease, nor does it grant the permittee the right to conduct drilling or development activities for oil, gas, sulphur or any minerals.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 7-1986, f. & ef. 7-18-86



141-010-0270

Reporting

(1) If requested by the director, the permittee shall submit to the Division monthly status reports during periods of active survey operations. The reports shall be in a form approved or prescribed by the Division.

(2) If requested by the director, the permittee shall submit to the Division a final report of the survey activities. The final report shall contain:

(a) A description of the work performed;

(b) Charts, maps, or plats depicting the areas in which survey activities were conducted, specifically identifying the tract lines where surveying occurred, and including a reference sufficient to identify the data produced during each activity;

(c) The dates on which survey activities were performed;

(d) A narrative summary of any adverse effects of the survey activities on environment, aquatic life, cultural resources, or other uses of the area in which the activities were conducted;

(e) Interpretable geological and/or geophysical data, collected pursuant to these rules and processed in the normal course of permittee's operations, and unused core samples or splits (the director may request such data, samples or splits at any time within five years after completion of the survey);

(f) Such other descriptions of the activities as may be specified by the Division, after consulting with the Department of Geology and Mineral Industries, the Department of Fish and Wildlife, and other affected state agencies.

(3) Reports and samples shall be forwarded by the Division to the Department of Geology and Mineral Industries for data analysis and maintenance of records to facilitate future survey decisions or for other purposes consistent with the statutory authority of the Department.

(4) Report information relating to survey impacts on aquatic life or habitat shall be forwarded to the Department of Fish and Wildlife.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 7-1986, f. & ef. 7-18-86



141-010-0280

Confidentiality

All proprietary information submitted by an applicant or permittee pursuant to these rules shall be treated as confidential trade secrets under ORS 192.500(1)(b) and shall not be disclosed to the public unless released by the permittee. Proprietary information includes, but is not limited to, the exact location of a survey and survey results.

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 7-1986, f. & ef. 7-18-86



141-010-0290

Inspection, Enforcement, Cancellation of Permit

(1) Upon request by the director, a permittee shall provide food and quarters for a representative of the director to observe and inspect survey activities onboard the survey vessel.

(2) Upon oral or written notice to the permittee, the director, or onboard representative of the director, may suspend a permit upon a finding that:

(a) There is a threat of serious damage to life (including fish and other aquatic life), property, mineral deposits, or marine, coastal or human environment; or

(b) The permittee has violated any terms or conditions of the permit.

(3) Such suspension shall be effective immediately upon notice.

(4) Oral notice of permit suspension shall be followed by written notice confirming the action.

(5) A suspension shall remain in effect until the basis for the suspension has been corrected to the satisfaction of the director or onboard representative. If such corrective action has not occurred within 30 days of the suspension, the director may permanently revoke the permit by written notice to the permittee stating the specific grounds for revocation. Within ten days of such notice, the permittee may request a contested case hearing, as provided in ORS 183.413 - 183.497

Stat. Auth.: ORS 274
Stats. Implemented: ORS 274 .735
Hist.: LB 7-1986, f. & ef. 7-18-86


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The official copy of an Oregon Administrative Rule is contained in the Administrative Order filed at the Archives Division, 800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the published version are satisfied in favor of the Administrative Order. The Oregon Administrative Rules and the Oregon Bulletin are copyrighted by the Oregon Secretary of State. Terms and Conditions of Use

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