50 sections in this chapter.
ORS 520.005 Definitions. As used in this chapter, unless the context requires otherwise
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(1) “Condensate” means liquid hydrocarbons that were originally in the gaseous phase in the reservoir. (2) “Field” means the general area underlaid by one or more pools. (3) “Gas” means all natural gas and all other fluid hydrocarbons not defined as oil in subsection (5) of this …
ORS 520.010 [Repealed by 1953 c.667 §21]
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[Repealed or reserved.]
ORS 520.015 [1953 c.667 §2; 1999 c.59 §164; repealed by 2007 c.672 §24]
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[Repealed or reserved.]
ORS 520.017 Fees; rules; disposition of fees. (1) The following fees are established under this chapter
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(a) The application fee for a permit to drill a well is $5,000. (b) The fee to modify a well permit, information hole permit or seismic program permit is $5,000. (c) The annual renewal fee for a well permit, information hole permit or seismic program permit is $4,000. (d) The app…
ORS 520.020 [Repealed by 1953 c.667 §21]
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[Repealed or reserved.]
ORS 520.025 Permit for drilling well or using well; extension; annual report; grounds for granting or denying permit. (1) A person may not drill or use a well without first obtaining a permit from the State Department of Geology and Mineral Industries and posting any bond that may be required pursuant to ORS 520.095 (1). When drilling has been completed, the well must be maintained under a permit until it is properly plugged and the site is reclaimed
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(2) A permittee maintaining or operating a well shall provide the department with an annual report on a form provided by the department. Subject to the determinations in subsection (3) of this section, a permittee shall renew the permit for a well by paying the fee established un…
ORS 520.027 Information holes; holes drilled as part of seismic program; trade secrets. (1) A person may not drill an information hole or a hole drilled as part of a seismic program without first applying for approval from the State Department of Geology and Mineral Industries and paying the fee established in ORS 520.017. The application must be submitted on a form provided by the department and must include all information requested by the department
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(2) A person issued an approval under this section shall comply with all terms of the department’s approval and any other applicable law or rule. The department may not require the person receiving approval under this section to provide information from seismic programs. The depa…
ORS 520.030 [Repealed by 1953 c.667 §21]
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[Repealed or reserved.]
ORS 520.035 Waste of oil or gas prohibited. The waste of oil or gas, as defined in ORS 520.005, is prohibited. [1953 c.667 §3; 2007 c.672 §7]
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[Repealed or reserved.]
ORS 520.040 [Repealed by 1953 c.667 §21]
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[Repealed or reserved.]
ORS 520.045 Determination of waste of oil or gas. The State Department of Geology and Mineral Industries may determine whether waste of oil or gas over which it has jurisdiction exists or is imminent. In the exercise of such power the department may
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(1) Collect data. (2) Make investigations and inspections. (3) Examine properties, leases, papers, books and records, including drilling records and logs. (4) Examine, check, test and gauge oil and gas wells and tanks. (5) Hold hearings. (6) Provide for the keeping of records and…
ORS 520.050 [Repealed by 1953 c.667 §21]
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[Repealed or reserved.]
ORS 520.055 General jurisdiction and authority of board; tidal lands; rules. (1) The governing board of the State Department of Geology and Mineral Industries has jurisdiction and authority over all persons and property, including tidal submerged and submersible lands of this state under ORS 274.705 to 274.860, necessary to enforce effectively this chapter and all other laws relating to the conservation of oil and gas
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(2) In addition to and not in lieu of any other powers granted under this chapter, the board may adopt rules and issue orders necessary to regulate geological, geophysical and seismic surveys on, and operations to remove sulfur from, the tidal submerged and submersible lands of t…
ORS 520.060 [Repealed by 1953 c.667 §21]
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[Repealed or reserved.]
ORS 520.065 [1953 c.667 §8; renumbered 520.210]
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[Repealed or reserved.]
ORS 520.070 [Repealed by 1953 c.667 §21]
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[Repealed or reserved.]
ORS 520.075 [1953 c.667 §9; 1961 c.671 §16; renumbered 520.220]
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[Repealed or reserved.]
ORS 520.080 [Repealed by 1953 c.667 §21]
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[Repealed or reserved.]
ORS 520.085 [1953 c.667 §10; 1961 c.671 §17; renumbered 520.230]
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[Repealed or reserved.]
ORS 520.090 [Repealed by 1953 c.667 §21]
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[Repealed or reserved.]
ORS 520.095 Rules and orders; bond. The governing board of the State Department of Geology and Mineral Industries may adopt rules and issue orders, and the department may issue orders, as may be necessary in the proper administration and enforcement of this chapter, including but not limited to rules and orders for the following purposes
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(1) To require the drilling, casing and plugging of wells to be done in such a manner as to prevent the escape of oil or gas out of one stratum to another; to prevent the intrusion of water into oil or gas strata; to prevent the pollution of fresh water supplies by oil, gas or sa…
ORS 520.097 Abandonment or completion of well; well logs and records; trade secrets. (1) For a period of two years from the date of abandonment or completion of a well, all well logs and records and well reports submitted to the State Department of Geology and Mineral Industries are trade secrets under ORS 192.345 and are not subject to public disclosure under ORS 192.311 to 192.478, and all drill cuttings and cores may not be disclosed to the public unless such protection is waived by the permittee or disclosure is required by a court order
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(2) The department may extend the period under subsection (1) of this section up to an additional five years on the request of the permittee or the permittee’s successor in interest. [2007 c.672 §12]
ORS 520.100 [Repealed by 1953 c.667 §21]
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[Repealed or reserved.]
ORS 520.105 [1953 c.667 §11; 1961 c.671 §19; repealed by 2007 c.672 §24]
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[Repealed or reserved.]
ORS 520.110 [Repealed by 1953 c.667 §21]
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[Repealed or reserved.]
ORS 520.115 [1953 c.667 §12; repealed by 2007 c.672 §24]
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[Repealed or reserved.]
ORS 520.120 [Repealed by 1953 c.667 §21]
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[Repealed or reserved.]
ORS 520.125 Authority of board to summon witnesses and require production of evidence. (1) The governing board of the State Department of Geology and Mineral Industries may summon witnesses, administer oaths and require the production of records, books and documents for examination at any hearing or investigation conducted before the board
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(2) In case of failure or refusal on the part of any person to comply with the subpoena issued by the board or in the case of the refusal of any witness to testify as to any matter regarding which the witness may lawfully be interrogated it shall be the duty of the circuit court …
ORS 520.130 [Repealed by 1953 c.667 §21]
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[Repealed or reserved.]
ORS 520.135 [1953 c.667 §14; repealed by 2007 c.672 §24]
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[Repealed or reserved.]
ORS 520.145 Judicial review of board or department actions. Any person adversely affected by any rule adopted by the governing board of the State Department of Geology and Mineral Industries under this chapter or any order issued by the board or the State Department of Geology and Mineral Industries under this chapter may obtain judicial review thereof pursuant to ORS chapter 183. [1953 c.667 §15; 1961 c.671 §20; 1979 c.562 §15; 1981 c.146 §3; 2007 c.672 §14]
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[Repealed or reserved.]
ORS 520.155 Records, accounts, reports and writings not to be falsified, altered, destroyed or removed from state. A person may not, for the purpose of evading the provisions of this chapter or any rule adopted or order issued under this chapter, make or cause to be made any false entry or statement in a report required by this chapter or by any rule or order under this chapter, make or cause to be made any false entry in any record, account or other writing required by this chapter or by any rule or order under this chapter, omit or cause to be omitted from any such record, account or writing full, true and correct entries as required by this chapter or any rule or order under this chapter, or remove from this state or destroy, mutilate, alter or falsify any such record, account or writing. [1953 c.667 §16; 2007 c.672 §15]
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[Repealed or reserved.]
ORS 520.165 Aiding or abetting in violation of chapter prohibited. A person may not knowingly aid or abet any other person in the violation of any provision of this chapter or any rule adopted or order issued under this chapter. [1953 c.667 §17; 2007 c.672 §16]
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[Repealed or reserved.]
ORS 520.175 Injunctions to restrain violation or threatened violation of chapter. (1) Whenever it appears that any person is violating or threatening to violate any provision of this chapter or any rule adopted or order issued under this chapter, the governing board of the State Department of Geology and Mineral Industries may bring an action against such person in the circuit court of any county where the violation occurs or is threatened, to restrain such person from continuing such violation. In any such action, the court shall have jurisdiction to grant to the board, without bond or other undertaking, such temporary restraining orders or final prohibitory and mandatory injunctions as the facts may warrant, including any such orders restraining the movement or disposition of oil or gas
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(2) If the board fails to bring an action to enjoin a violation or threatened violation of any provision of this chapter or any rule adopted or order issued under this chapter, within 60 days after receipt of a written request to do so by any person who is or will be adversely af…
ORS 520.210 Establishment of spacing units for pool or field; purpose; scope; effect. (1) When necessary to prevent waste of oil or gas, to avoid the drilling of unnecessary wells or to protect correlative rights, the governing board of the State Department of Geology and Mineral Industries shall establish spacing units for a pool or field. Spacing units when established shall be of uniform size and shape for the entire pool or field, except that when found to be necessary for any of the above purposes the board is authorized to divide any pool or field into zones and establish spacing units for each zone, which units may differ in size and shape from those established in any other zone. The board may not establish spacing units for injection wells, withdrawal wells or monitoring wells drilled for the purpose of storing gas or other gaseous substances, or wells drilled for the underground disposal of fluids
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(2) The size and shape of spacing units shall be such as will result in efficient and economical development of the pool or field as a whole and the size thereof may not be smaller than the maximum area that can be efficiently drained by one well. (3) An order establishing spacin…
ORS 520.220 Integrating interests or tracts within spacing unit. (1) When two or more separately owned tracts are embraced within a spacing unit or when there are separately owned interests in all or a part of such spacing unit, then the interested persons may integrate their tracts or interests for the development and operation of the spacing unit
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(2) In the absence of voluntary integration, the governing board of the State Department of Geology and Mineral Industries, upon the application of any interested person, shall make an order integrating all tracts or interests in the spacing unit for the development and operation…
ORS 520.230 Approved agreement for cooperative or unit development of pool not to be construed as violating certain regulatory laws. (1) An agreement for the unit or cooperative development and operation of a field or pool in connection with the conduct of repressuring or pressure maintenance operations, cycling or recycling operations, including the extraction and separation of liquid hydrocarbons from natural gas in connection therewith, or any other method of operation, including water floods, is authorized and may be performed and shall not be held or construed to violate ORS 59.005 to 59.505, 59.710 to 59.830, 59.991 and 59.995 or any of the statutes of this state relative to trusts, monopolies or contracts and combinations in restraint of trade, if such agreement is approved by the governing board of the State Department of Geology and Mineral Industries as being in the public interest, for the protection of correlative rights and reasonably necessary to increase ultimate recovery or prevent waste of oil or gas. The failure to submit such an agreement to the board for approval does not, for that reason, imply or constitute evidence that the agreement or operations conducted pursuant thereto violate ORS 59.005 to 59.505, 59.710 to 59.830, 59.991 and 59.995 or any statute of this state now or hereafter in effect relating to trusts and monopolies
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(2) An agreement for the unit or cooperative development or operation of a field, pool or part thereof may be submitted to the board for approval as being in the public interest or reasonably necessary to prevent waste or protect correlative rights. Approval by the board constitu…
ORS 520.240 Voluntary unitization of operations by lessees of tidal or submersible lands; Department of State Lands’ function. (1) For the purpose of properly conserving the natural resources of any single oil or gas pool or field, lessees under ORS 274.705 to 274.860 and their representatives may unite with each other jointly or separately, or jointly or separately with others owning or operating lands not belonging to the state, in collectively adopting and operating under a cooperative or unit plan of development or operation of the pool or field, whenever it is determined by the Department of State Lands to be necessary or advisable in the public interest
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(2) The Department of State Lands may, with the consent of the holders of the leases involved, establish, alter, change and revoke any drilling and production requirements of such leases, and make such regulations with reference to such leases, with like consent on the part of th…
ORS 520.260 Hearing to determine need for unitization of operations; required findings; order. (1) The governing board of the State Department of Geology and Mineral Industries upon its own motion may, and upon the application of any interested person shall, hold a hearing to consider the need for the operation as a unit of one or more pools or parts thereof in a field
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(2) The board shall make an order providing for the unit operation of a pool or part thereof if it finds that: (a) Unit operation is reasonably necessary to effectively carry on pressure control, pressure maintenance or repressuring operations, cycling operations, water flooding …
ORS 520.270 Plan for unit operations. An order issued pursuant to ORS 520.260 shall be upon terms and conditions that are just and reasonable, and shall prescribe a plan for unit operations that includes the following
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(1) A description of the pool or pools or parts thereof to be so operated. (2) A statement of the nature of the operations contemplated. (3) An allocation to the separately owned tracts in the unit area of all the oil and gas that is produced from the unit area and is saved, bein…
ORS 520.280 Allocation of production under plan; ownership. (1) The allocation described in ORS 520.270 (3) shall be in accord with the agreement, if any, of the interested parties. If there is no such agreement, the governing board of the State Department of Geology and Mineral Industries shall determine the relative value, from evidence introduced at the hearing, of the separately owned tracts in the unit area, exclusive of physical equipment, for development of oil and gas by unit operations. The production allocated to each tract shall be the proportion that the relative value of each tract so determined bears to the relative value of all tracts in the unit area
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(2) That portion of the unit production allocated to any tract, and the proceeds from the sale thereof, are the property and income of the several persons to whom, or to whose credit, they are allocated or payable under the order providing for unit operations. [1961 c.671 §§4,10]
ORS 520.290 When unitization order to become effective; supplemental hearings. (1) No order of the governing board of the State Department of Geology and Mineral Industries providing for unit operations is effective until
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(a) The plan for unit operations prescribed by the board under ORS 520.270 has been approved in writing by (A) those owners who, under the board’s order, will be required to pay at least 75 percent of the costs of the unit operation, and (B) those persons who, at the time of the …
ORS 520.300 Amending unitization order. An order providing for unit operations may be amended by an order made by the governing board of the State Department of Geology and Mineral Industries in the same manner and subject to the same conditions as an original order providing for unit operations. However
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(1) If the amendment affects only the rights and interests of the owners, the approval of the amendment by the royalty owners is not required. (2) The order of amendment may not change the percentage for the allocation of: (a) Oil and gas as established for any separately owned t…
ORS 520.310 Unitization of area including area previously unitized; partial unitization of pool. (1) The governing board of the State Department of Geology and Mineral Industries by order may provide for the unit operation of a pool or pools or parts thereof that embrace a unit area established by a previous order of the board. The order, in providing for the allocation of unit production, shall first treat as a single tract the unit area previously established, and the portion of the unit production so allocated thereto shall then be allocated among the separately owned tracts included in the previously established unit area in the same proportions as those specified in the previous order
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(2) An order may provide for unit operations on less than the whole of a pool where the unit area is of such size and shape as may reasonably be required for that purpose, and the conduct thereof will have no adverse effect upon other portions of the pool. [1961 c.671 §§7,8; 2007…
ORS 520.320 Unitization order does not terminate prior agreements or affect oil and gas rights; acquisition of property during unit operations. (1) No division order or other contract relating to the sale or purchase of production from a separately owned tract may be terminated by the order providing for unit operations, but remains in force and applies to oil and gas allocated to that tract until terminated in accordance with the provisions thereof
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(2) Except to the extent that the parties affected so agree, no order providing for unit operations results in a transfer of all or any part of the title of any person to the oil and gas rights in any tract in the unit area. (3) All property, whether real or personal, that may be…
ORS 520.330 Effect of operations in unit area. All operations, including but not limited to the commencement, drilling or operation of a well, upon any portion of the unit area, are considered for all purposes the conduct of such operations upon each separately owned tract in the unit area by the several owners thereof. The portion of the unit production allocated to a separately owned tract in a unit area, when produced, is considered for all purposes to have been actually produced from that tract by a well drilled thereon. Operations conducted pursuant to an order of the governing board of the State Department of Geology and Mineral Industries providing for unit operations constitute a fulfillment of all the express or implied obligations of each lease or contract covering lands in the unit area to the extent that compliance with such obligations cannot be had because of the order of the board. [1961 c.671 §9; 2007 c.672 §22]
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UNDERGROUND RESERVOIRS
ORS 520.340 Legislative findings. The underground storage of natural gas in Oregon is found by the Legislative Assembly to be in the public interest in that the establishment of underground reservoirs of natural gas will help insure the continued, uninterrupted availability of natural gas supplies to residential, commercial and industrial consumers in Oregon during periods of peak demand and during interruptions in the normal flow of natural gas supplies. [1977 c.296 §5]
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[Repealed or reserved.]
ORS 520.350 Property rights in underground reservoirs for natural gas storage. (1) All natural gas in an underground reservoir utilized for underground storage, whether acquired by eminent domain or otherwise, shall at all times be the property of the natural gas company utilizing said underground storage, its heirs, successors, or assigns. In no event shall such gas be subject to the rights of the owner of the surface of the land under which said underground reservoir lies or of the owner of any mineral interest therein or of any person other than said natural gas company, its heirs, successors and assigns to release, produce, take, reduce to possessions, or otherwise interfere with or exercise any control thereof
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(2) Any right of condemnation granted for the purposes of ORS 520.340, 772.610 to 772.625 and this section shall be without prejudice to the rights of the owner of the condemned lands or of the rights and interest therein to drill or bore through the underground reservoir in such…
ORS 520.990 [Repealed by 1953 c.667 §21]
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PENALTIES
ORS 520.991 Penalties. Subject to ORS 153.022, violation of any provision of this chapter, any rule adopted by the governing board of the State Department of Geology and Mineral Industries under this chapter or any order issued by the board or the State Department of Geology and Mineral Industries under this chapter is a Class B misdemeanor. [1953 c.667 §19; 1999 c.1051 §315; 2007 c.672 §23; 2011 c.597 §221]
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CHAPTER 521 [Reserved for expansion] _______________