BILL ANALYSIS
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THIRD READING
Bill No: SB 571
Author: Maldonado (R)
Amended: As introduced
Vote: 21
SENATE NATURAL RES. & WATER COMMITTEE : 10-0, 4/14/09
AYES: Pavley, Cogdill, Hollingsworth, Huff, Kehoe, Leno,
Padilla, Simitian, Wiggins, Wolk
NO VOTE RECORDED: Benoit
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Geothermal resources
SOURCE : Author
DIGEST : This bill extends the authority of the State Oil
and Gas Supervisor to deny approval of an operator's new or
expanded geothermal well operations if the operator fails
to pay a civil penalty, fails to remedy a violation, or
fails to pay the required well fee. It extends current
authority to include geothermal well operations.
ANALYSIS : Existing law authorizes the State Oil and Gas
Supervisor to deny approval of an operator's proposed gas
and oil well operations if the operator fails to remedy a
violation, fails to pay a civil penalty, or fails to pay
assessed charges. The approval denial is in effect until
the operator remedies the violation to the satisfaction of
the supervisor, pays the civil penalty, or pays the
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assessed charges.
This bill extends the authority of the State Oil and Gas
Supervisor to deny approval of an operator's new or
expanded geothermal well operations if the operator fails
to pay a civil penalty, fails to remedy a violation, or
fails to pay the required well fee. It extends current
authority to include geothermal well operations.
Background
Geothermal energy is natural heat generated deep inside the
earth. Generally, this heat is only usable when it occurs
near the earth's surface and heats underground water.
Geothermal resources are generally found in two forms: dry
steam and hot water. Dry steam is rare and valuable, due
to the relatively few mineral impurities it contains.
Geothermal wells are drilled into the more permeable,
steam-bearing fracture zones to tap the resource. Hot
water geothermal resources are more common but also more
difficult to develop because they require dealing with the
highly mineralized geothermal water and the disposal of
spent geothermal water. Geothermal wells bring hot water
to the surface at high pressure and convert the water into
steam.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
ARGUMENTS IN SUPPORT : According to the author, "The
State Oil and Gas Supervisor does not have authority to
deny approval of geothermal well operations proposed by an
operator who has failed to comply with an order, pay civil
penalties or well fees, or remedy other violations. Thus,
an out-of-compliance operator may currently expand
operations, and, therefore, increase opportunities for
noncompliance while continuing to ignore their legal
obligations associated with current operations."
CTW:mw 4/29/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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