Arizona Laws 27-672. Unit operations; unit agreements
A. Each lease issued under the provisions of this article shall provide that the lessee, insofar as its interest is affected, may join, with the department‘s prior written approval, in cooperative or unit plans for the development and operation of geothermal resource pools with the United States, its agencies and its or their lessees and permittees and with private owners and persons holding geothermal resource leases on private lands or on state lands.
Terms Used In Arizona Laws 27-672
- Department: means the state land department. See Arizona Laws 27-651
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Geothermal resources: means :
(a) All products of geothermal processes embracing indigenous steam, hot water and hot brines. See Arizona Laws 27-651
- Lease: means a geothermal resources development lease issued for state lands pursuant to the provisions of this article. See Arizona Laws 27-651
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lessee: means the holder of a lease or any assignee of an original lease or part thereof. See Arizona Laws 27-651
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Operator: means any person drilling, maintaining, operating, pumping or in control of any well, and includes the owner, when any well is or has been or is about to be operated or under the direction of the owner. See Arizona Laws 27-651
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
B. Upon determination by the department that it is in the best interests of the state to commit state lands to a cooperative or unit plan for the development and operation of geothermal resource pools, the department may, insofar as the state royalties may be affected thereby, join in and consent to any such plan on behalf of the state. The agreements shall provide for the equitable division on an agreed basis of the geothermal resource produced from the unit and for the extension of leases covering any part of the unit so long as geothermal resources in paying quantities are produced from any part of the unit. No such agreement shall relieve any operator from the obligation to develop reasonably the lands and leases as a whole nor shall such agreement relieve the lessee of the obligation to pay to the department the royalty provided for in the lease.