Oregon Statutes - Chapter 522 - Geothermal Resources - Section 522.415 - Unit operation plan.

A voluntary or board-sponsored unit agreement developed in response to a rule adopted or an order issued under ORS 522.405 shall provide a unit operation plan that includes:

(1) A description of the geothermal reservoir and the overlaying land to be operated as a unit.

(2) A statement of the nature of the operations contemplated.

(3) A provision for credits and charges to be made in the adjustment among the owners in a unit area for their respective investments in geothermal wells, prospect wells, machinery, materials and equipment used in the unit operation.

(4) The division of interest or a formula for apportionment of unit production among the separately owned tracts within the unit area which reasonably permits a person or state or local governing body, special district or agency otherwise entitled to share in or benefit by production from a tract to receive an equitable and reasonable share of the unit production or other benefit. An equitable and reasonable share of unit production is measured by the proportion the value of the separately owned tract for geothermal resources recovery bears to the value of the unit for that purpose, taking acreage into account.

(5) Provisions which state how the costs will be paid, how unit production is to be measured and when, how and by whom unit production is to be allocated. The provision shall provide that unit production due to an owner who does not pay that owner’s share of the cost of unit operation or that owner’s interest may be sold and the proceeds applied to the cost.

(6) A provision, if necessary, for making financing available to any person or state or local governing body, special district or agency that wishes to obtain financing. The provision shall allow a reasonable interest charge for the service payable out of that respective share of production.

(7) A provision for the supervision and conduct of the unit operation. Each person or state or local governing body, special district or agency shall have a vote on the provision with a weight corresponding to the percentage of the cost of unit operation chargeable against that respective interest.

(8) The time when the unit operation shall begin and the manner and circumstances under which the unit operation shall terminate.

(9) Provisions, if necessary, for the protection of preexisting water users within the unit area and for administration of future water development from the reservoir covered by the unit agreement. [1981 c.588 §9]

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Last modified: August 7, 2008