30 U.S.C. § 1017 — Unit and communitization agreements
submitted 56 years ago by Pub. L. 91-581 to r/title-30-MINERAL-LANDS-AND-MINING · 863 words · no verdicts yet
This section authorizes geothermal lessees to form unit agreements and allows the Secretary to require or modify them in the public interest. It also governs pooling, review, development contracts, and State coordination.
(a) Adoption of units by lessees. (1) To better conserve a geothermal reservoir, field, or similar area, lessees and their representatives may join with one another or with others to adopt and operate under a unit agreement, including for direct-use resources, if the Secretary determines and certifies that it is necessary or advisable in the public interest. “Unit agreement” means a cooperative development or operating plan; this section does not otherwise define the term. (2) Owners holding a majority interest in a single lease may commit that lease to a unit agreement. (3) The Secretary may start a unit agreement or require an existing Federal lease to join one if that is in the public interest. (4)(A) With the consent of the leaseholders and lessees, the Secretary may set, change, or revoke operating rates and requirements, and set lease conditions, for creating or operating a unit agreement when needed or advisable to protect the public interest. (B) Leases with different terms or royalty rates need not be changed to join the same unit.
(b) Requirements for new leases. The Secretary may (1) require new geothermal leases to say that the lessee must operate under a unit agreement, and (2) prescribe that agreement, which must adequately protect all interested parties, including the United States.
(c) Rates. For a unit agreement covering United States land, the Secretary may require authority in the agreement for the Secretary or a designated person, committee, or State or Federal officer or agency to change the rate of prospecting and development and the amount and rate of production.
(d) Holdings. Land covered by a Secretary-approved or prescribed unit agreement is not counted when determining holdings or control under section 1006.
(e) Pooling. If separate tracts cannot independently be developed and operated for geothermal resources, (1) the Secretary may, if in the public interest, allow them to be pooled with other land under a communitization agreement that apportions production or royalties among the tracts; and (2) operation or production under that agreement counts as operation or production for every covered tract.
(f) Review. (1) Within 5 years after approval and at least every 5 years afterward, the Secretary must review each unit agreement and, after notice and a chance to comment, remove land not reasonably needed for unit operations. (2) Removal must be based on scientific evidence and solely for conserving and properly managing the geothermal resource. (3) Removed land may receive an extension under section 1005(g) if it qualifies.
(g) Drilling or development contracts. (1) The Secretary may approve, on prescribed conditions, contracts between geothermal lessees and persons, associations, or corporations when conservation, public convenience or necessity, or United States interests support approval. (2) A lease and contract interest operated under an approved contract are excluded from holdings and control calculations under section 1006.
(h) State coordination. The Secretary must coordinate unitization and pooling with appropriate State agencies.
For the purpose of more properly conserving the natural resources of any geothermal reservoir, field, or like area, or any part thereof (whether or not any part of the geothermal reservoir, field, or like area, is subject to any cooperative plan of development or operation (referred to in this section as a “unit agreement”)), lessees thereof and their representatives may unite with each other, or jointly or separately with others, in collectively adopting and operating under a unit agreement for the reservoir, field, or like area, or any part thereof, including direct use resources, if determined and certified by the Secretary to be necessary or advisable in the public interest.
A majority interest of owners of any single lease shall have the authority to commit the lease to a unit agreement.
The Secretary may also initiate the formation of a unit agreement, or require an existing Federal lease to commit to a unit agreement, if in the public interest.
The Secretary may, in the discretion of the Secretary and with the consent of the holders of leases involved, establish, alter, change, or revoke rates of operations (including drilling, operations, production, and other requirements) of the leases and make conditions with respect to the leases, with the consent of the lessees, in connection with the creation and operation of any such unit agreement as the Secretary may consider necessary or advisable to secure the protection of the public interest.
Leases with unlike lease terms or royalty rates shall not be required to be modified to be in the same unit.
The Secretary may—
provide that geothermal leases issued under this chapter shall contain a provision requiring the lessee to operate under a unit agreement; and
prescribe the unit agreement under which the lessee shall operate, which shall adequately protect the rights of all parties in interest, including the United States.
The Secretary may require that any unit agreement authorized by this section that applies to land owned by the United States contain a provision under which authority is vested in the Secretary, or any person, committee, or State or Federal officer or agency as may be designated in the unit agreement to alter or modify, from time to time, the rate of prospecting and development and the quantity and rate of production under the unit agreement.
Any land that is subject to a unit agreement approved or prescribed by the Secretary under this section shall not be considered in determining holdings or control under section 1006 of this title.
If separate tracts of land cannot be independently developed and operated to use geothermal resources pursuant to any section of this chapter—
the land, or a portion of the land, may be pooled with other land, whether or not owned by the United States, for purposes of development and operation under a communitization agreement providing for an apportionment of production or royalties among the separate tracts of land comprising the production unit, if the pooling is determined by the Secretary to be in the public interest; and
operation or production pursuant to the communitization agreement shall be treated as operation or production with respect to each tract of land that is subject to the communitization agreement.
Not later than 5 years after the date of approval of any unit agreement and at least every 5 years thereafter, the Secretary shall—
review each unit agreement; and
after notice and opportunity for comment, eliminate from inclusion in the unit agreement any land that the Secretary determines is not reasonably necessary for unit operations under the unit agreement.
The elimination shall—
be based on scientific evidence; and
occur only if the elimination is determined by the Secretary to be for the purpose of conserving and properly managing the geothermal resource.
Any land eliminated under this subsection shall be eligible for an extension under section 1005(g) of this title if the land meets the requirements for the extension.
The Secretary may, on such conditions as the Secretary may prescribe, approve drilling or development contracts made by one or more lessees of geothermal leases, with one or more persons, associations, or corporations if, in the discretion of the Secretary, the conservation of natural resources or the public convenience or necessity may require or the interests of the United States may be best served by the approval.
Each lease operated under an approved drilling or development contract, and interest under the contract, shall be excepted in determining holdings or control under section 1006 of this title.
The Secretary shall coordinate unitization and pooling activities with appropriate State agencies.
Source credit: (Pub. L. 91–581, § 18, Dec. 24, 1970, 84 Stat. 1571; Pub. L. 100–443, § 4, Sept. 22, 1988, 102 Stat. 1768; Pub. L. 109–58, title II, § 227, Aug. 8, 2005, 119 Stat. 666.)
- 1970Enacted · Pub. L. 91-581 · 84 Stat. 1571
- 1988Amended · Pub. L. 100-443 · 102 Stat. 1768
- 2005Amended · Pub. L. 109-58 · 119 Stat. 666
A history note hasn’t been published yet. The record shows enactment by Pub. L. 91-581 on 1970-12-24.
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