30 USC 1017 - Unit and communitization agreements

U.S Code last checked for updates: Oct 17, 2024

§ 1017.

Unit and communitization agreements

(a)

Adoption of units by lessees

(1)

In general

(2)

Majority interest of single leases

(3)

Initiative of Secretary

(4)

Modification of lease requirements by Secretary

(A)

In general

(B)

Unlike terms or rates

(b)

Requirement of plans under new leases

The Secretary may—

(1)

provide that geothermal leases issued under this chapter shall contain a provision requiring the lessee to operate under a unit agreement; and

(2)

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.

(c)

Modification of rate of prospecting, development, and production

(d)

Exclusion from determination of holding or control

(e)

Pooling of certain land

If separate tracts of land cannot be independently developed and operated to use geothermal resources pursuant to any section of this chapter—

(1)

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

(2)

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.

(f)

Unit agreement review

(1)

In general

Not later than 5 years after the date of approval of any unit agreement and at least every 5 years thereafter, the Secretary shall—

(A)

review each unit agreement; and

(B)

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.

(2)

Basis for elimination

The elimination shall—

(A)

be based on scientific evidence; and

(B)

occur only if the elimination is determined by the Secretary to be for the purpose of conserving and properly managing the geothermal resource.

(3)

Extension

(g)

Drilling or development contracts

(1)

In general

(2)

Holdings or control

(h)

Coordination with State governments

(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.)

cite as: 30 USC 1017