73-22-6 - Information required concerning resource development -- Confidentiality -- Regulation of wells -- Surety bonds -- Inspection.
73-22-6. Information required concerning resource development -- Confidentiality-- Regulation of wells -- Surety bonds -- Inspection.
(1) The division shall have authority to require:
(a) Identification of the location and ownership of all wells and producing geothermalleases.
(b) Filing with the division of a notice of intent to drill, redrill, deepen, permanently alterthe casing of, or abandon any well. Approval of the notice of intent must be obtained from thedivision prior to commencement of operations.
(c) Keeping of well logs and filing true and correct copies with the division. Theserecords are public records when filed with the division, unless the owner or operator requests, inwriting, that the records be held confidential. The period of confidentiality shall be established bythe division, not to exceed five years from the date of production or injection for other than testingpurposes or five years from the date of abandonment, whichever occurs first, as determined bythe division. Well records held confidential by the division are open to inspection by thosepersons authorized in writing by the owner or operator. Confidential status shall not restrictinspection by state officers charged with regulating well operations or by authorized officials ofthe Utah State Tax Commission for purposes of tax assessment.
(d) The spacing, drilling, casing, testing, operating, producing, and abandonment of wellsso as to prevent: (i) geothermal resources, water, gases, or other fluids from escaping into strataother than the strata in which they are found (unless in accordance with a subsurface injectionprogram approved by the division); (ii) pollution of surface and groundwater; (iii) prematurecooling of any geothermal system by water encroachment or otherwise which tends to reduce theultimate economic recovery of the geothermal resources; (iv) blowouts, cave-ins, and seepage;and (v) unreasonable disturbance or injury to neighboring properties, prior water rights, humanlife, health, and the environment.
(e) The operator to file cash or individual surety bonds with the division for each newwell drilled and each abandoned well redrilled. The amount of surety required shall bedetermined by the division. In lieu of bonds for separate wells, the operator may file a blanketcash or individual surety bond in an amount set by the division to cover all the operator's drilling,redrilling, deepening, maintenance, or abandonment activities for wells in the state. Bonds filedwith the division shall be executed by the operator, as principal, conditioned on compliance withdivision regulations in drilling, redrilling, deepening, maintaining, or abandoning any well orwells covered by the bond and shall secure the state against all losses, charges, and expensesincurred by it to obtain such compliance by the principal named in the bond.
(f) The geothermal owner or operator to measure geothermal production according tostandards set by the division and maintain complete and accurate production records. The records,or certified copies of them, shall be preserved on file by the owner or operator for a period of fiveyears and shall be available for examination by the division at all reasonable times.
(g) Filing with the division any other reasonable reports which it prescribes regardinggeothermal operations within the state.
(2) Any bond filed with the division in conformance with this chapter may, with theconsent of the division, be terminated and canceled and the surety be relieved of all obligationsunder it when the well or wells covered by the bond have been properly abandoned or anothervalid bond has been substituted for it.
(3) The division may enter onto private or public land at any time to inspect any well or
geothermal resource development project to determine if the well or project is being constructed,operated, or maintained according to any applicable permits or to determine if the construction,operation, or maintenance of the well or project may involve an unreasonable risk to life, health,property, the environment or subsurface, surface, or atmospheric resources.
Enacted by Chapter 188, 1981 General Session