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v 1 The Arizona Geological Survey (AZGS) is a state agency with the mission to “inform and advise the public about the geologic character of Arizona in order to foster understanding and prudent development of the State’s land, water, mineral and energy resources.” The AZGS provides a variety of services and resources including: Geothermal Publicationsare archived at the AZGS. Publications are available on Arizona mineral and energy resources, their attributes, and their natural hazards and limitations. Earth Science Information Center (ESIC) is a distribution point for the publication of the United States Geological Survey (USGS) and the AZGS. A quarterly newsletter, Arizona Geologyfeatures geologic information and feature stories on the state’s resources. The Center for Land Subsidence and Earth Fissure Information, is a joint project of the AZGS and the Arizona Department of WaterResources to provide an information resource on subsidence areas andearths fissures as a result of groundwater or oil extraction or othersubsurface conditions. AZGS also maintains Arizona Geologic Information System, acomputer database to store and provide access to Arizona geology information, and a Geology Library, which is open to the public and contains 25,000 volumes and performs Mapping and Geologic Investigations. AZGS 416 W Congress, Suite 100 Tucson, Arizona 85701 (520) 770-3500 FAX: (520) 770-3505 v 2 SES Geothermal Website: http://geothermal.nau.edu/ v 3 The AZGS has the responsibility for providing permits for drilling of a well. The AZGS staffs the Oil and Gas Conservation Commission(OGCC). The OGCC is responsible for regulating the drilling for and productionof geothermal resources as well as oil, gas, helium and carbon dioxide. An applicant must submit an Application for Permit to Drill or Re-enter (Erik insert pdf here) to the department for approval. For questions or more information contact Steve Rauzi, Oil and Gas Administrator, Arizona Geological Survey, (520) 770-3500. AZGS 416 W Congress, Suite 100 Tucson, Arizona 85701 (520) 770-3500 FAX: (520) 770-3505 v 4 Arizona Geologic Survey Several state agencies, including the Arizona Geological Survey (AZGS), have jurisdiction over aspects of geothermal development. This includes but is not limited to drilling, water extraction, water re-injection and surface applications. Laws are written by the Arizona Legislature or U.S. Congress and provide the framework and authority for programs administered by state agencies. Regulations are the administrative rules developed by a state agency to administer and implement laws. Geothermal Laws Laws pertaining to geothermal resource development relatedto the production of electricity are located in the Arizona RevisedStatutes (ARS). They are contained in A.R.S. 27.651 – 12-677. The statutes are organized by title, chapter, article, and subsection,as listed below. Title 27 Minerals, Gas and Oil Chapter 4 Oil and Gas Article 4 Geothermal Resources Subsections 651-677. Click here to take you to Title 27. Each subsection of ARS related to Geothermal can also be accessed by using the specific links below. | Title 27 | | Chapter 4 | Minerals, Oil and Gas | | OIL AND GAS | | Article 4 | Geothermal Resources | | 27-651 | Definitions | | 27-652 | Supervision by commission | | 27-653 | Information; filing; confidentiality | | 27-654 | Drilling bond; amount; responsibility | | 27-655 | Commission approval prior to operation; information; hearing | | 27-656 | Rules and orders; hearing | | 27-657 | Agent for process | | 27-658 | Notice of sale or conveyance of well or land | | 27-659 | Application to drill | | 27-660 | Safety requirements | | 27-661 | Drilling record; samples | | 27-662 | Monthly report | | 27-663 | Unlawful interference; classification | | 27-664 | Cooperative development agreements; unitization | | 27-665 | Unitization; requirements | | 27-666 | Pooling | | 27-667 | Relationship of geothermal resources to water laws | | 27-668 | Leasing state lands for development of geothermal resources | | 27-669 | Designation of known geothermal resource areas | | 27-670 | Lease of state lands; application; call for bids; publication; withdrawal of lands from leasing | | 27-671 | Provisions of lease | | 27-672 | Unit operations; unit agreements | | 27-673 | Surface use by lessee; liability for damages; bond; appraisal of damages; appeal | | 27-674 | Assignment of lease; recording | | 27-675 | Surrender | | 27-676 | Enjoining violations | | 27-677 | Violation; civil penalty | Geothermal Regulation Administrative Code is the detailed requirements of the Oil and Gas Conservation Commission, the committee charged with implementing Arizona law related to geothermal energy development. Administrative code on geothermal energy can be found at the Arizona Secretary of State’s website. Specific regulations are in Title 12 Natural Resources Chapter 7 Oil and Gas Conservation Commission Sections 100-195 Click here to take you to Title 12 AZGS 416 W Congress, Suite 100 Tucson, Arizona 85701 (520) 770-3500 FAX: (520) 770-3505 v 5 The mission of the Arizona Department of Environmental Quality (ADEQ) is to “protect and enhance public health and the environmentin Arizona.” They accomplish their mission through programs that manage and regulate the quality of the state’s air, land and water resources. Related to geothermal, the ADEQ is responsible for the disposal of waters associated with a geothermal project. The permit and process to be followed depend on whether the fluid is to be disposed of into surface watersor underground. If surface disposal is part of a project, the operator will need to apply to the Arizona National Pollutant Discharge Elimination System (AZNPDES). This program is authorized under Section 402 of the Clean Water Act. Geothermal facilities that may discharge pollutants (geothermal waste water) from any point source into waters of the United States (navigable waters) are required to apply for an AZPDES permit. There are two types of AZNPDES permits, individual and general.Individual permits are for specific facilities, however the permit is not valid for longerthan five years. Most geothermal projects will fall under the general permit category. If the project will require underground disposal (injection), the facility will need to obtain an Aquifer Protection Permit (APP). APP also are categorized by individual and general permits. Application guidance for Individual permits is provided in the Application Packet. However, the department recommends that a potential applicant schedule a meeting with ADEQ staff to discuss the project and permit application. For a listing of ADEQ staff click here. There are five types of general permits based on the activity. Type 1 General Permit. No notification to the department is required, however, best management practices (BMPs) must be followed to reduce or prevent the discharge of pollutants. Type 2 General Permits require a Notice of Intent (NOI) and a Supplemental Notice of Intent Type 3 General Permits require a Notice of Intent and a Supplemental Notice of Intent Type 4 General Permits require a Notice of Intent Agricultural General Permits. No notification to the department is required; however, BMPs must be followed to reduce or prevent the discharge of pollutants. For more information, or to schedule an appointment, contact the agency. Phoenix Main Office 1110 W. Washington St. Phoenix, AZ 85007 (602)771-2300 Toll free (800)234-5677 Northern Regional Office 1515 E. Cedar Ave., Suite F Flagstaff, AZ 86004 Southern Regional Office 400 W. Congress, Suite 433 Tucson, AZ 85701 v 6 Several state agencies, including the Arizona Department of Environmental Quality (ADEQ) have jurisdiction over aspects of geothermal development. This includes, but is not limited to, drilling, waterextraction, water re-injection and surface applications. Laws are writtenby the Arizona Legislature or U.S. Congress and provide the frameworkand authority for programs administered by state agencies. Regulationsare the administrative rules developed by a state agency to administerand implement laws. Related to geothermal, the ADEQ is responsible for the disposal of waters associated with a geothermal project. The permit and process to be followed depend on whether the fluid is to be disposed of into surface waters or underground. If surface disposal is part of a project, the operator will need to apply to the Arizona National Pollutant Discharge Elimination System (AZNPDES). This program is authorized under Section 402 of the CleanWater Act. The Clean Water Act is a federal law. In 1972 theFederal Water Pollution Control Act was passed to control, for the firsttime, water pollution. This act was amended in 1977 and became knownas the Clean Water Act. This act has been modified many times over theyears. The act, which governs the discharge of pollutants into waters of the U.S., is administered by the U.S. Environmental Protection Agency (EPA). Under these laws, it is illegal for any person to discharge any pollutant from a point-source (one place) into navigable water without a permit. For more information and a copy of the full action, see the U.S. EPA sites. If the project will require underground disposal (injection), the facility will need to obtain an Aquifer Protection Permit (APP) APPs also are categorized by individual and general permits. The department has three convenient locations: Phoenix Main Office 1110 W. Washington St. Phoenix, AZ 85007 (602)771-2300 Toll free (800)234-5677 Northern Regional Office 1515 E. Cedar Ave., Suite F Flagstaff, AZ 86004 Toll free (800)234-5677 Southern Regional Office 400 W. Congress, Suite 433 Tucson, AZ 85701 Toll free (800)234-5677 v 7 The Arizona Department of Water Resources (ADWR) is the agency responsible for managing surface and groundwater in the state. According to their website, they work “to secure long-term dependable water supplies for Arizona's communities. The Department administers and enforces Arizona’s groundwater code, and surface water rights laws (except those related to water quality); negotiates with external political entitiesto protect Arizona's Colorado River water supply; oversees the use of surface and groundwater resources under state jurisdiction, and represents Arizona in discussions of water rights with the federal government.” The ADWR must be consulted to obtain a well construction permit and to secure water rights. The ADWR offers a variety of services and resources including: The Arizona Water Information / Statutes & Rules section provides legal documents governing Arizona water use, information on water supply and demand, and groundwater management information,among other topics. The Forms portion of the website provides all the well drilling forms necessary to apply for a drilling permit and Notice of Intent form. The New Publications section provides a listing of reports that are available on-line. A Well Drillers List is also provided by the Department of full time well drillers who are liCEFNS
ed with the department. ADWR 500 North 3rd Street Phoenix, AZ 85004-3903 (602) 417-2400 Fax: (602) 417-2401 Groundwater Management Support Section: (602) 417-2470 Primary point of contact for questions pertaining to the filing of Notice of Intention to Drill (NOI) forms, well construction andthe liCEFNS
ing of well drillers Water Rights Records Section: (602) 417-2405 v 8 Arizona Department of Water Resources Several state agencies, including the Arizona Department of Water Resources (ADWR) have jurisdiction over aspects of geothermal development. This includes, but is not limited to, drilling, water extraction, water re-injection and surface applications. Laws are written by the Arizona Legislature or U.S. Congress and provide the framework and authority for programs administered by state agencies. Regulations are the administrative rules developed by a state agency to administer and implement laws. Groundwater Extraction Laws Title 45 - Waters Laws pertaining to extraction of groundwater are located in the Arizona Revised Statutes (ARS). A.R.S.12-100 – 12-195 The statutes are organized by title, chapter, article and subsection as listed below. Title 45 Waters Chapter 12 Groundwater Code Sections 100-195 http://www.azleg.state.az.us/ArizonaRevisedStatutes.asp?Title=45 To minimize overdraft of groundwater, the state of Arizonacreated a comprehensive management system (originally adopted as the1980Groundwater Management Code). The management system establishedfive Active Management Areas (AMA) in the state. Water withdrawal fromany of the AMAs is more highly regulated then in other parts of the state.These areas include Phoenix, Pinal, Prescott, Santa Cruz and Tucson ActiveManagement Area. It is important to note that while all groundwater is subject to Title 45 regulations, an exemption for geothermal waters used mainly for electricity production can be found in ARS 45-591.01. Oil, gas, helium andgeothermal wells; exemption which reads in part: “Geothermal wells drilled pursuant to the provisions of title 27 are not wells as defined in this chapter when the director finds that the rules and regulations of the oil and gas conservation commission require the reinjection of all waters associated with the geothermal resource to the producing strata. “ Because the state of Arizona treats waters from different areas differently, developers are advised to contact the Department of Water Resources directly to ensure proper procedures are followed. However, for most direct use applications, a developer will typically applyfor an Industrial Use Permit. The statutory language guiding thosepermits can be found here. Title 41 – State Government Wells that are located in one of the five AMAs, which willdraw more than 35 gallons per minute of groundwater, are required tohave a withdrawal permit from the ADWR. The statutes that guidethis requirement are located in A.R.S. 41-1008 and 41-10790. The statutes are organized by title, chapter, article and subsection as listed below. Title 41 State Government Chapter 6 Administrative Procedures Sections 1008 and 10790 http://www.azleg.state.az.us/ArizonaRevisedStatutes.asp?Title=41 For the section on Fees for withdrawal permits. For the section on Information to be provided to developer Water Extraction Regulations Administrative Code is the detailed requirements of the Arizona Department of Water Resources, the agency charged with implementing Arizona law related to groundwater. Administrative code ongroundwater extraction can be found at the Arizona Secretary of State’s website. Go to Title 12 - Natural Resources, Chapter 15 – Department of Water Resources, Sections 100-195 ADWR 500 North 3rd Street Phoenix, AZ 85004-3903 (602)417-2400 Fax: (602)417-2401 Groundwater Management Support Section: 602-417-2470 Primary point of contact for questions pertaining to the filing of Notice of Intention to Drill (NOI) forms, well construction andthe liCEFNS
ing of well drillers Water Rights Records Section: 602-417-2405 v 9 The Arizona Department of Commerce provides a variety of services to those interested in developing projects in Arizona and information on Arizona communities. The Community Planning Office provides technical assistance and training for Arizona cities and towns, counties and tribal governments. The division is knowledgeable about planning and zoning issues in each community, and is a one-stop shop for information on a community. 1700 W. Washington Street Suite 600 Phoenix, Arizona 85007 Metro Phoenix (602)771-1100 Statewide (800)528-8421 Community Planning (602)771-1191 v 10 When considering a project location, developers may be interested in information on the community. The Arizona Department of Commerce publishes community profiles for each of Arizona’s cities and towns, Tribal communities and counties. Contained in these profiles is statistical information on population, labor force and principal economic activities. There is also a summary of the community, and its natural resources and attractions. Information on taxes, utilities and infrastructure is also available on each community. These fact sheets provide a brief comprehensive overviewof the local area, and contain contacts for the local economic developmentorganization, or contact the chamber of commerce for more information. To view an example of a fact sheet click here. 1700 W. Washington Street Suite 600 Phoenix, Arizona 85007 Metro Phoenix (602)771-1100 Statewide (800)528-8421 Community Planning (602)771-1191 v 11The Geothermal Technologies Program is part of the Officeof Energy Efficiency and Renewable Energy at the U.S. Department ofEnergy (DOE). The website offers information on: - Geothermal basics & educational resources
- U.S. geothermal history
- Geothermal resource maps & data
- Geothermal photos
- Geothermal energy uses/applications
- Power plants/electricity production
- Geothermal heat pumps
- Environmental & economic impacts
- Research & development
- Enhanced geothermal systems (EGS)
- Exploration & drilling
- Laws & standards
- Industry associations & partnerships
In addition, this website is a link to DOE’s GeoPowering the West Program. GeoPowering the West is a collaborative program that includes industry, power companies, and all levels of governments and consumers. The program provides technical support, grants and financial support for state activities, and works to support development of geothermal technologies, project and techniques. For those looking to keep up to date on industry and state news, the DOE supports Geothermal biz.com http://www.geothermal-biz.com/news.htm The site provides “development information for geothermal entrepreneurs.” Arizona and a nationwide listing of events can be found atthe Geothermal-biz website calendar State, national and regional activities and news are published in the Geothermal-biz website newsletter. You can view a past newsletter or sign up to receive electronic copies of the newsletter when they are published. v 12 Federal Laws and Standards There are a number of federal laws that also govern development of geothermal resources. These laws cover minerals, lands and mining, conservation, and public health and welfare. For more specific information click here. v 13 Arizona State Land Department
The Arizona State Land Department is responsible for managing State Trust Lands. These are lands given to the state at statehood for the long term benefit of beneficiaries. The primary beneficiaries inArizona are public K-12 schools. The Natural Resources Division of the Department is responsible for administering leases related to any natural resource. Among the leasing categories are mineral, mineral material, exploration, grazing, agriculture and more. The Mineral Management Program relates to the leasing of land for geothermal purposes. There are three categories of mineral commodity classifications: leasableminerals, common variety minerals and energy minerals. Energy Mineralsincludes oil, gas and geothermal resources. For mineral exploration for geothermal you willneed to submit a permit application. The application includesa $100 filing fee. The minimum acreage per application is 20 acres andthe term of the Mineral Exploration Permit is five years. Leases for exploration can be renewed annually. For mineral leases for geothermal you must use aNon-Competitive Oil and Gas Application to apply. There is a $100 filingfee for the application. You must provide an advanced rental feeat the time of application. This is $1 per acre for a minimum of $40. Along with the application, requirements for permits or leases include: - Submittal of a Mineral Development Report. The MDR requires geologic and environmental assessments, economicfeasibility, mine operation plan and reclamation and closure plan. Guidance on preparing the report can be found at the link above.
- Payment of rental fees.
- Royalties on the recovered mineral products.
- Appraisal or administrative fees (varies with applications).
- Providing U.S.G.S topographic maps that shows specific (boundaries, roads, etc) on the area to be leased.
- Proof of permits from applicable federal, state or county regulatory agencies.
- A reclamation bond and indemnity Insurance. (The amount of the bond and insurance is set by the Department.)
- Cultural resource and native plant surveys may and a plan of operation is necessary for exploration permits.
Arizona State Land Department Minerals Section 1616 West Adams Street Phoenix, Arizona 85007 602-542-4625 v 14 Bureau of Land Management
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