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(a) Before the issuance of a noncompetitive geothermal lease or before the commencement of the development of geothermal resources, the submission and approval of a plan of development is required of
(1) a holder of a prospecting permit who discovers geothermal resources in commercial quantities and who applies for a noncompetitive geothermal lease under 11 AAC 84.740; and
(2) a holder of a competitive geothermal lease who has discovered geothermal resources.
(b) A plan of development must include
(1) a description of long-range proposed development activities, including plans to drill for underlying geothermal resources, bring the resources into production, and maintain and enhance production once established;
(2) the details of the proposed operations;
(3) the surface location of proposed facilities, drill pads, roads, docks, causeways, material sites, camps, waste disposal sites, water supplies, airstrips, power generating facilities, pipelines, power lines, and any other operation or facility necessary for development of the lease;
(4) the details of the proposal to rehabilitate the area after development ceases; and
(5) a description of plans to prevent or control the release of combustible liquids and gases and toxic or noxious liquids or gases.
(c) The plan of development must be updated whenever it becomes apparent that the actual development will deviate from that outlined in the previously approved plan of development. The update must describe in detail the extent to which the previously approved plan was carried out and, if actual operations have not complied with the previously approved plan, the update must include an explanation of and justification for the noncompliance.
(d) Within 65 days after receiving the proposed update of a plan of development, the commissioner will approve or disapprove the updated plan. If the plan is disapproved, the commissioner will state the reasons for disapproval and will, in his discretion, propose modifications which, if accepted by the permittee or lessee, would qualify the plan for approval.
(e) If a proposed update of a plan of development is disapproved by the commissioner and the lessee does not accept modifications proposed by the commissioner, or if the commissioner determines that there has been an unjustified failure by the lessee to comply with the requirements of the previous plan of development, the commissioner may terminate the lease after 90 days' notice and opportunity to be heard.
(f) The lessee may propose to modify an approved plan of development at any time. The commissioner must approve the modification for it to be effective.
History: Eff. 8/22/82, Register 83
Authority: AS 38.05.020
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Last modified 7/05/2006