OAR 632-020-0138: Unit Agreements

(1) When voluntary unitization occurs under ORS 522.405 to 522.545, the unit operator must pay a fee to the department for the administration of the unit. The amount of the fee will be determined by the board on a case-by-case basis. The unit operator must collect equitable shares of this fee from all persons, or state or local governing bodies, special districts, or agencies with a royalty interest in the unitized development. (2) When the board requires the development of a unit agreement under ORS 522.405 to 522.545, the unit operator must pay a fee to the department for the creation and administration of the unit. The amount of the fee will be determined by the board on a case-by-case basis, for creation and administration of the unit. The unit operator must collect equitable shares of this fee from all persons, or state or local governing bodies, special districts, or agencies with a royalty interest in the unitized development. (3) The department will review voluntary unit agreements governing production of geothermal resources to ensure compliance with the provisions of ORS 522.405 to 522.545. (4) The operator or person proposing a board-initiated unit agreement must make application to the board. (5) The department shall enforce, when necessary, board-approved or initiated unit agreements. (6) The board may change or approve proposed changes in the boundaries of a unit area upon application by the unit operator or interested person. Such changes shall not jeopardize pre-existing contractual relationships between participating parties. (7) The board may levy fees upon any operator, person, state or local governing body, special district, or agency that holds a royalty interest in a unit area to cover reasonable costs associated with the development and administration of a unit agreement. If such a fee is not paid when due, the board may require the fee to be paid from proceeds of the sale of the unit production.