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(continued) all persons who have informed the Division in writing of their desire to receive such notice. The notice shall describe the geothermal resource rights available for leasing, and state the last date, which shall be at least 30 days after the date the notice is posted, on which applications will be received.
(2) Applications for the geothermal resource rights described in the notice shall be submitted in sealed envelopes labeled "Simultaneous Filing _________date" on a form supplied by the Division, and shall be accompanied by the filing fee required by rule 141-075-0040, and the advance rental required by rule 141-075-0230 and a prepaid, stamped business reply envelope.
(3) All applications for the leasing of such geothermal resource rights filed on or before the closing date stated in the notice shall be considered to have been filed simultaneously. Such applications shall be opened in the Division's Salem office at 10 a.m. of the first business day following the closing date stated in the notice.
(4) After reviewing each application for compliance with the requirements of these rules, the Division shall select the successful qualified applicant by a random drawing which shall be held in public. Unless otherwise noted in the notice for simultaneous filing, successful applicants shall be required to comply with OAR 141-075-0255 through 141-075-0270 prior to receiving a geothermal resources lease.
(5) After the awarding of geothermal resource leases to the successful qualified applicants, all rental checks shall be returned to the unsuccessful applicants, together with a list of the successful applicants.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 17-1974(Temp), f. 5-31-74, cert. ef. 6-1-74; LB 19-1974, f. & cert. ef. 9-18-74
Unit or Cooperative Plans of Development
141-075-0460
Unit or Cooperative Plans of Development Authorized
Lessees under geothermal resources leases are authorized, with the prior consent of the Division, to commit state-owned geothermal resources rights to unit, cooperative, or other plans of development along with other geothermal resource rights located in or under other state lands, federal lands, Indian lands, or privately owned lands, and, to implement such unit, cooperative, or other plans of development, the Division may, with the consent of its lessee, modify and change any and all terms of geothermal resources leases issued by it which are committed to such unit, cooperative, or other plan of development.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 17-1974(Temp), f. 5-31-74, cert. ef. 6-1-74; LB 19-1974, f. & cert. ef. 9-18-74
141-075-0465
Unitization Required
The Director may, when separate geothermal resource rights under lease cannot be developed and operated independently in accordance with an approved well-spacing or well-development program, require lessees to enter into unitization or drilling agreements, providing for the apportionment of production or royalties among separate tracts of land comprising the drilling or spacing unit for the lease, or any portion thereof, with other geothermal resource rights whether or not owned by the state of Oregon, when it is necessary to do so in the public interest. Operations or production pursuant to such an agreement shall be deemed to be operations or production as to each lease committed thereto.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 17-1974(Temp), f. 5-31-74, cert. ef. 6-1-74; LB 19-1974, f. & cert. ef. 9-18-74
141-075-0470
Term of Lease Under Unit Agreement
The term of any geothermal resources lease included in the unit, cooperative, or other plan of development shall be extended automatically for the term of such unit, cooperative, or other agreement. Rentals and royalties on leases so extended shall be at the rate specified in the lease.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 17-1974(Temp), f. 5-31-74, cert. ef. 6-1-74; LB 19-1974, f. & cert. ef. 9-18-74
141-075-0475
Issuing Leases in Established Units
Before issuing a geothermal resources lease for geothermal resource rights within a unit area approved by the Division under OAR 141-075-0355 or 141-075-0360, the applicant or successful bidder will be required to file evidence that he has entered into an agreement with a unit operator for the development and operation of the geothermal resource rights, or provide a statement giving satisfactory reasons of the failure to enter into such an agreement. The Director may permit the applicant to operate geothermal resource rights leased within such an approved unit agreement independently, but will require the applicant to perform its operations in a manner in which the Director deems to be consistent with the unit operations.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 17-1974(Temp), f. 5-31-74, cert. ef. 6-1-74; LB 19-1974, f. & cert. ef. 9-18-74
141-075-0480
Subsidence Monitoring Required
Whenever a unit is established in which the majority of geothermal resource rights are held by a State of Oregon lessee, the lessee shall install and maintain a subsidence monitoring program.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 17-1974(Temp), f. 5-31-74, cert. ef. 6-1-74; LB 19-1974, f. & cert. ef. 9-18-74
Competitive Leasing
141-075-0520
"Designated Geothermal Resources Areas" Authorized
In order to establish priorities for effective development of the energy capability of geothermal resource rights owned by the state, the Division may classify such geothermal resource rights as being within Designated Geothermal Resources Areas upon finding that a high probability of geothermal resource development exists.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 17-1974(Temp), f. 5-31-74, cert. ef. 6-1-74; LB 19-1974, f. & cert. ef. 9-18-74
141-075-0525
Basis for Making Designation
The Division may designate geothermal resource rights as being within a Designated Geothermal Resource Area:
(1) Upon receipt of notice of the discovery of geothermal resources under a geothermal resources lease, or upon learning that geothermal resources have been discovered on lands adjacent to state-owned geothermal resource rights.
(2) After conducting its own investigation of a particular area with reference to geothermal occurrences, either natural or man-made, geologic structures, present land uses, recreational potential, wildlife potential, geologic and geophysical test data, and other information of a factual nature.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 17-1974(Temp), f. 5-31-74, cert. ef. 6-1-74; LB 19-1974, f. & cert. ef. 9-18-74
141-075-0530
Public Notice of Designation
Prior to designating a Designated Geothermal Resources Area, the Division shall publish a notice of its intention to do so in a newspaper of general circulation in each county in which the particular state-owned geothermal resource rights are located.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 17-1974(Temp), f. 5-31-74, cert. ef. 6-1-74; LB 19-1974, f. & cert. ef. 9-18-74
141-075-0535
Establishment of Bidding Unit
After establishing a Designated Geothermal Resources Area, the Division shall establish quadrants which divide that area into four bidding units of approximately equal size. Unleased geothermal resource rights within each bidding unit shall be grouped for bidding purposes
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 19-1974, f. & cert. ef. 9-18-74
141-075-0540
Division Action After Discovery
Upon notification of a discovery, the Division will reject applications for geothermal resources leases for all geothermal resource rights lying within seven miles of the discovery site.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 19-1974, f. & cert. ef. 9-18-74
141-075-0545
Notice of Bidding
The Division will publish a notice of opportunity to bid for leases within the Designated Geothermal Resources Area in a newspaper of general circulation in the county or counties where the Designated Geothermal Resources Area is located. The Division will provide written notice to any person or organization which has requested in writing of the Division that such notices be provided to it directly.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 19-1974, f. & cert. ef. 9-18-74
141-075-0550
Contents of Notice
The notice will specify the time and place of bid opening, the manner in which bids shall be submitted, a description of the geothermal resources rights in each bidding unit, and the terms and conditions of the lease, including loyalty and rental rates. The notice will also state that a proposed plan for reduction of environmental impacts and an environmental impact analysis of development and production alternatives will be required before a lease can be issued.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 19-1974, f. & cert. ef. 9-18-74
141-075-0555
Bidding Requirements
Each bidder shall submit with his bid an application to lease geothermal resource rights, the filing fee required by rule 141-075-0040, and a certified or cashier's check, bank draft, or money order in the amount of one-half of the amount of the applicant's bonus bid.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 19-1974, f. & cert. ef. 9-18-74
141-075-0560
Opening of Bids and Award of Leases
The following procedures will be employed in opening bids and awarding leases:
(1) All bids received within the deadline stated in the notice shall be opened and announced at the place, date, and hour specified in the notice. No bids will be accepted or rejected at that time.
(2) The Division shall have the right to reject any and all bids submitted. Incomplete and nonconforming bids shall be rejected and the bonus bid deposits thereon returned.
(3) Within 30 days of the bid opening, or such longer periods as may be specified in the notice of bids, the Director shall award a lease for each bidding unit to the qualified applicant which is highest bidder. If the Director does not award a lease within the required period, all bids shall be considered rejected.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 19-1974, f. & cert. ef. 9-18-74
141-075-0565
Lease Execution
If a lease is awarded, a form of lease shall be sent to the successful bidder, who must execute it within 30 days of receipt, pay the first year's rental and pay the balance of its bonus bid. Within 120 days, and prior to commencing the operations under the lease, the lessee shall file the corporate surety bond required by the Division, file evidence of required insurance, and file completed agreements for environmental protection and surface management.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 19-1974, f. & cert. ef. 9-18-74
141-075-0570
Forfeiture of Competitive Bid Leases
If a successful bidder fails to execute the lease or otherwise fails to comply with these rules, its deposit will be forfeited and the bidding unit will be re-offered for competitive leasing.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 19-1974, f. & cert. ef. 9-18-74
141-075-0575
Restoration of Bidding Units
If no bids are received on a bidding unit, the Division, at its discretion, may remove the Geothermal Resource Rights therein from the Designated Geothermal Resources Area and offer the lands for non-competitive Geothermal Resource Rights leasing.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .045, ORS 273 .551 & ORS 273 .780
Hist.: LB 19-1974, f. & cert. ef. 9-18-74; LB 6-1982, f. & ef. 7-21-82
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