11 AAC 84.750. Plan of operations

(a) Except as provided in (b) of this section, a holder of a geothermal lease or prospecting permit shall have a plan of operations for all or part of the leased area approved by the commissioner before any operations may be undertaken on the area of the geothermal lease or prospecting permit if

(1) the state owns all or part of the surface estate of the lease or prospecting permit area;

(2) the lease reserves a net profit share to the state; or

(3) the state owns all or part of the mineral estate, but the entire surface estate is owned by a party other than the state, and a surface owner requests that the commissioner require and approve a plan of operations for the portion of the leased area owned by that surface owner.

(b) A lease plan of operations is not required for

(1) activities that would not require a land use permit under this title; or

(2) operations undertaken under an approved unit plan of operations in accordance with this title.

(c) Before undertaking operations on the geothermal lease or prospecting permit area, the holder of a geothermal lease or prospecting permit shall provide for full payment of all damages sustained by the owner of the surface estate as well as by the surface owner's lessees and permittees, by reason of entering the land. If the surface estate is owned by a party other than the state, the holder of a geothermal lease or prospecting permit shall also notify the surface owner of his opportunity to request that the commissioner require a plan of operations before allowing operations to be undertaken on the portion of the leased area owned by the requesting surface owner.

(d) Application for approval of a plan of operations must contain sufficient information, based on data reasonably available at the time the plan is submitted for approval, for the commissioner to determine the surface use requirements and impacts directly associated with the proposed operations. An application must include statements and maps or drawings setting out the following:

(1) the sequence and schedule of the operations to be conducted on the lease or prospecting permit area, including the date operations are planned to begin and their planned duration;

(2) projected use requirements directly associated with the proposed operations, including but not limited to the location and design of camps, well sites, test hole sites, pipelines, material sites, water supplies, waste disposal sites, buildings, roads, power operating facilities, utilities, airstrips, and all other facilities and equipment necessary to conduct the proposed operations;

(3) plans for rehabilitation of the affected leased area after completion of operations or phases of those operations;

(4) a description of operating procedures designed to prevent or minimize adverse effects on other natural resources and other uses of the leased area and adjacent areas, including fish and wildlife habitats, historic and archeological sites, and public use areas; and

(5) plans to prevent or control the release of combustible liquids and gases and toxic or noxious liquids or gases.

(e) In approving a plan of operations or an amendment of a plan, the commissioner will require amendments he determines necessary to protect the state's interest. The commissioner will not require any amendment that would be inconsistent with the terms of sale under which the lease was obtained, or with the terms of the lease or prospecting permit itself, or which would deprive the holder of the permit or lease of his right reasonably to explore for and develop geothermal resources on the area of the prospecting permit or lease.

(f) The holder of a geothermal prospecting permit or lease may, with the approval of the commissioner, amend an approved plan of operations.

(g) Upon completion of operations, the holder of a geothermal prospecting permit or lease shall inspect the area of operations and submit a report indicating the completion date of operations and stating any noncompliance of which the permittee or lessee knows, or should reasonably know, with requirements imposed as a condition of approval of the plan.

(h) In submitting a proposed plan of operations for approval, the holder of a geothermal prospecting permit or lease shall provide 10 copies of the plan if activities proposed are within the coastal zone, or five copies if activities proposed are not within the coastal zone.

History: Eff. 8/22/82, Register 83; am 5/8/83, Register 86

Authority: AS 38.05.020

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