11 AAC 84.875. Participating area

(a) At least 90 days before sustained unit production from a geothermal system, the unit operator shall submit to the commissioner for approval a description, based on subdivisions of the public land survey or its aliquot parts, of the proposed participating area. The participating area may include only the land reasonably known to be underlain by geothermal resources and known or reasonably estimated through use of geological, geophysical, and engineering data to be capable of producing or contributing to production of geothermal resources in paying quantities. Under 11 AAC 84.905(a) , the unit operator shall also submit to the commissioner for approval a proposed division of interest or formula setting out the percentage of production and costs to be allocated to each lease and portion of a lease within the participating area. Upon approval by the commissioner, the area of productivity constitutes the participating area.

(b) A separate participating area must be established as provided in (a) of this section for each geothermal system delineated, except that with the consent of the commissioner and all working interest owners, any two or more reservoirs or participating areas within the unit may be combined into one participating area.

(c) A participating area must be expanded to include acreage reasonably estimated through use of geological, geophysical, and engineering data to be capable of producing or contributing to the production of geothermal resources in paying quantities or contracted to exclude acreage reasonably proven through use of geological, geophysical, and engineering data to be incapable of producing geothermal resources in paying quantities, subject to approval by the commissioner. A revised division of interest or formula allocating production and costs must be submitted for approval under 11 AAC 84.905 at the time of expansion or contraction of a participating area. A revision of a participating area becomes effective the first day of the month in which the revision is approved by the commissioner.

History: Eff. 5/8/83, Register 86

Authority: AS 38.05.020

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