43 C.F.R. Subpart 3217—Cooperative Conservation Provisions


Title 43 - Public Lands: Interior


Title 43: Public Lands: Interior
PART 3200—GEOTHERMAL RESOURCE LEASING

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Subpart 3217—Cooperative Conservation Provisions

§ 3217.10   What are unit agreements and cooperative plans?

Lessees enter into a unit agreement or a cooperative plan to conserve the resources of any geothermal field or area. By operating together, lessees can work more efficiently and promote better development. BLM will only approve unit agreements which we determine are in the public interest. Unit agreement application procedures are provided in 43 CFR part 3280.

§ 3217.11   What are communitization agreements?

Communitization agreements (also called drilling agreements) help operators who cannot independently develop separate tracts due to problems with well spacing or well development programs. Lessees may ask BLM to approve a communitization agreement or, in some cases, we may require the lessees to enter into such an agreement.

§ 3217.12   What does BLM need to approve my communitization agreement?

Give us the following information:

(a) The location of the separate tracts comprising the drilling or spacing unit;

(b) How you will prorate production or royalties to each separate tract based on total acres involved;

(c) The name of each tract operator; and

(d) Provisions for protecting the interests of all parties, including the United States.

§ 3217.13   When does my communitization agreement go into effect?

When BLM signs it. Before we approve the agreement, all parties must sign the agreement, and we must determine that the tracts cannot be independently developed.

§ 3217.14   When will BLM approve my operating, drilling or development contract?

We may approve an operating, drilling or development contract when:

(a) One or more geothermal lessees enter into the contract with one or more persons or partnerships;

(b) Lessees need the contract for large scale operations and financing of the discovery, development, production, transmission, transportation or utilization of geothermal resources; and

(c) We determine that the contract is needed to conserve the resource, or it will serve the public interest.

§ 3217.15   What does BLM need to approve my operating, drilling or development contract?

Send us:

(a) The contract and a statement of why you need it;

(b) A statement of all interests held by the contracting parties in that geothermal area or field;

(c) The type of operations and schedule set by the contract;

(d) A statement that the contract will not violate Federal antitrust laws by concentrating control over the production or sale of geothermal resources;

(e) Any other information we may require to make a decision about the contract or to attach conditions of approval.

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