30 U.S.C. § 1017 : US Code - Section 1017: Unit and communitization agreements

Search 30 U.S.C. § 1017 : US Code - Section 1017: Unit and communitization agreements

(a) Adoption of units by lessees
(1) In general
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.
(2) Majority interest of single leases
A majority interest of owners of any single lease shall have
the authority to commit the lease to a unit agreement.
(3) Initiative of Secretary
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.
(4) Modification of lease requirements by Secretary
(A) In general
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.
(B) Unlike terms or rates
Leases with unlike lease terms or royalty rates shall not be
required to be modified to be in the same unit.
(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
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.
(d) Exclusion from determination of holding or control
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.
(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
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.
(g) Drilling or development contracts
(1) In general
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.
(2) Holdings or control
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.
(h) Coordination with State governments
The Secretary shall coordinate unitization and pooling activities
with appropriate State agencies.