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Journal of Energy & Natural Resources Law Volume 5, 1987 - Issue 2
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Original Articles

The Contents of New Geothermal Legislation

Adrian J. Bradbrook M.A. (Cantab.), LL.M. (Osgoode Hall), Ph.D. (Melbourne), Barrister and Solicitor of the Supreme Courts of Victoria and Nova Scotia. Reader in Law, University of Melbourne.
Pages 81-108 | Published online: 08 Jun 2015

  • See generally, D. H. Tarling and M. P. Tarling, Continental Drift, Penguin Books (1971).
  • See Ministry of Works and Development, Power from the Earth, Wellington (1984); Ministry of Energy, Report of the Electricity Sector Planning Committee, Document No. ISSN 0111–7947, Wellington (1985).
  • T. Batchelor, Geothermal Energy Project, unpublished (1985). Copy on file with author.
  • Department of Industry, Technology and Resources and Victorian Solar Energy Council, Geothermal Resources of Victoria: A Discussion Paper, Melbourne, (1985) 14ff, 30; L. H. Goldsmith, Australian Geothermal Resource Exploration Program. Phase 1: Program Initiation, 1979, unpublished, 1–2.
  • For a discussion of the various types of geothermal resources, see S. Sato and T. D. Crocker, “Property Rights to Geothermal Resources” (1977) 6 Ecology L.Q. 250 at 255–262; D. C. Hansen, “Water Conflicts from the Viewpoint of a Regulator” (1977) 13 Land and Water L. Rev. 151 at 152–154; K. R. Bjorge “The Development of Geothermal Resources and the 1970 Geothermal Steam Act—Law in Search of Definition” (1974) 46 U. Colorado L. Rev. 1 at 2–3.
  • For a detailed discussion of the HDR resource, see Smith, Potter, Brown and Aamodt, “Induction and Growth Fractures in Hot Rock,” in Kruger and Otte, eds., Geothermal Energy: Resources, Petroleum, Stimulation, at 251 et seq.
  • S. D. Naumann, “Form Over Function: The Law of Hot Water” (1983) 4 J. Energy L. and Policy 205 at 209.
  • G. Vranesh and J. D. Musick, “Geothermal Resources: Water and Other Conflicts Encountered by the Developer” (1977) 13 Land and Water L. Rev. 109 at 115, n. 24. The amount of geothermal heat in the outer 10 kms of the earth's crust has been calculated to be 3 × 1026 calories: L. J. Muffler and D. E. White, “Geothermal Energy,” The Science Teacher, March 1972, at 40.
  • Department of Industry, Technology and Resources and Victorian Solar Energy Council, op. cit. at 26.
  • Ibid.
  • W. H. Lawrence and J. H. Minan, “Financing Solar Energy Development Through Public Utilities” (1982) 50 George Washington L. Rev. 371 at 372. The payback period is usually assessed by calculating the additional capital cost of an alternative energy device over and above an equivalent conventionally-powered system and then working out how many years it takes to recoup this additional outlay by savings in gas or electricity at current fuel prices.
  • A. Akbarzadeh and B. R. Thompson, An Overview of the Potential and Applications of Geothermal Energy in Victoria and Proposed Future Actions (unpublished), (1984) at 6–7.
  • A. J. Bradbrook, Solar Energy and the Law, Law Book Co., Sydney, (1984) 26–27.
  • See pp. 100–101, infra. See also A. J. Bradbook: “Environmental Controls over Geothermal Energy Exploitation”, to be published in Vol. 4, No. 1 (1987) Environmental and Planning Law Journal.
  • See O. Olpin, A. D. Tarlock and C. F. Austin, “Geothermal Development and Western Water Law” [1979] Utah L. Rev. 793 at 816; Comment, “The Application of Depletion to Geothermal Resources” (1976) 9 U. Michigan J.L. Ref. 233 at 241.
  • In the Australian context, see e.g. Mines Act 1958 (Vic.) s.3(1) (definition of “mineral”); Petroleum Act 1958 (Vic.), s.3(1) (definition of “petroleum”); Groundwater Act 1969 (Vic.), s.2(1) (definition of “groundwater”).
  • See e.g. Wyoming: Wyo. Stat., s.41–121(b) (Supp. 1983); Nevada: Nev. Rev. Stat. S.534A.040 (Supp. 1984).
  • See e.g. Hawaii Rev. Stat., s,182-1(1) (Supp. 1984); Texas Rev. Civ. Stat. Ann., art. 1435a, s.4(2) (Vernon Supp. 1984).
  • (1972) 454 F. 2d 1157. Cf. U.S. v. Union Oil Co. (1971) 549 F. 2d 1271.
  • See P. McDevitt and D. Wells, “Energy Market Impacts of the Legal Definition of Geothermal Energy in the Western United States” (1982) 22 Nat. Res. J. 391 at 392 et seq.; Sato and Crocker, op. cit. at 283 et seq.
  • J. W. Aidlin, “Representing the Geothermal Resources Client” (1974) 19 Rocky Mt. M. L. Inst. 27 at 30–31.
  • New Zealand: Geothermal Energy Act 1953; British Columbia: Geothermal Resources Act, Stats. B.C. 1982, c. 14; Alaska: Ala. Stats. Ann., s. 38.05.181; Arizona; Ariz. Rev. Stat. Ann., ss.27–651 to 27–675; California: Cal. Pub. Res. Code, ss.3700 et seq. and ss.6902 et seq.; Hawaii: Ha. Rev. Stats., ss.182–1 et seq.; Idaho: Id. Code ss.42–4001 et seq. Montana: Mont. Rev. Codes Ann., ss.81–2601 to 2613; Nevada: Nev. Rev. Stat., ss.534A.010-.040; New Mexico: N.M. Stat. Ann. ss.65–11–1 to 24; Oregon: Ore. Rev. Stats., ss.522.010 et seq: Washington: Wash. Rev. Code Ann., ss.79.76.010-.990. In addition, there is U.S. Federal legislation regulating geothermal development on federal lands: see 30 U.S.C, ss.1001–1025.
  • See, e.g. Petroleum Act 1937 (N.Z.); Petroleum Act 1958 (Vic.); Petroleum Act 1955 (N.S.W.).
  • Letter to Dr. A. J. Bradbrook from Mr. Barry Coulter, Minister for Mines and Energy, Darwin, July 8,1986.
  • See Department of Industry, Technology and Resources and Victorian Solar Energy Council, op. cit. para. 14.6.1.
  • Cf. the definitions in Geothermal Energy Act 1953 (N.Z.), s.2; Geothermal Resources Act, Stats. B.C. 1982, c.14, s.1; 30 U.S.C. s.1OO1(c); Calif. Pub. Res. Code, ss.3701, 6903; Idaho Code, s.42–4002.
  • Cf. the definition in Cal. Pub. Res. Code, s.3703.1.
  • Cf. the definitions in Geothermal Energy Act 1953 (N.Z.), s.2; 30 U.S.C. s.1OO1(c); Calif. Pub. Res. Code, s.3702; Idaho Code, s.42–4002.
  • Cf. Geothermal Energy Act 1953 (N.Z.), s.4.
  • The issue of ownership is discussed in A. J. Bradbrook, The Ownership of Geothermal Resources, to be published in the 1987 issue of the Australian Mining and Petroleum Law Association Yearbook.
  • Cf. Geothermal Resources Act, Stats. B.C., 1982, c. 14, s.2.
  • See, e.g. Petroleum Act 1958 (Vic.), s.5; Petroleum Act 1955 (N.S.W.), s.6; Mines Act 1958 (Vic.), S.291; Petroleum Act 1937 (N.Z.), s.3(1).
  • See e.g. Crown Lands Alienation Act 1861 (N.S.W.) and Crown Lands Consolidation Act 1913 (N.S.W.).
  • See Geothermal Energy Act 1953 (N.Z.), s.3; Water Act 1912 (N.S.W.), s.4B; Groundwater Act 1969 (Vic.), S.47.
  • S. D. Clark and A. J. Myers, “Vesting and Divesting: The Victorian Groundwater Act 1969” (1970) 7 Melbourne U.L. Rev. 237 at 251 et seq.
  • See e.g. Geothermal Energy Act 1953 (N.Z.), s.7; Petroleum Act 1958 (Vic.), s.7.
  • See p. 87, supra.
  • Alaska Stats. Ann., s.38.05.181(e).
  • Cal. Pub. Res. Code, s.6908.
  • See, e.g. Petroleum Act 1958 (Vic.), s.65(1).
  • Alaska Stats. Ann., s.38.05.181(c).
  • Cal. Pub. Res. Code, s.6910.
  • See, e.g. Petroleum Act 1958 (Vic.), s.70(2).
  • See p. 89, supra.
  • Alaska Stats. Ann., s.38.05.181(e); Cal. Pub. Res. Code, s.6908.
  • 30 U.S.C, s. 1003.
  • Cf. Petroleum Act 1958 (Vic.), s.30; Petroleum Act 1937 (N.Z.), s.14.
  • See, e.g. 30 U.S.C., s.1004; Cal. Pub. Res. Code, s.6913; Alaska Stats. Ann. s.38.05.181(g).
  • Tarlock and Waller, op. cit. at 292; Vranesh and Musick, op. cit. at 116.
  • See p. 104, infra.
  • See, e.g. Cal. Pub. Res. Code, s.3757.
  • See, e.g. Petroleum Act 1955 (N.S.W.), s.33; Petroleum Act 1958 (Vie.), s.33.
  • Cf. Geothermal Resources Act, Stats. B.C. 1982, c.14, s.12; Cai. Pub. Res. Code, s.3724; Oregon Rev. Stats., s.522.135.
  • Cf. Geothermal Energy Regs. 1961 (N.Z.), regs. 11,16; Ariz. Rev. Stats. Ann., 27–661; Oregon Rev. Stats., s.522.355; Idaho Code Ann., s.42–4010(b).
  • Cf. Geothermal Resources Act, Stats. B.C., c.14, s.14, Geothermal Energy Regulations 1961 (N2.), reg. 3.
  • Gentle v. Faulkner [1900] 2 Q.B. 267.
  • See, e.g. Landlord and Tenant Act 1927 (U.K.), s.l9(1)(a); Law of Property Act 1925 (U.K.), S.144; Conveyancing Act 1919 (N.S.W.), S.133B; Property Law Act 1958 (Vic.) S.144.
  • The legal classification of a geothermal production lease is a matter for court determination. By way of analogy, see the discussion of the classification of mining and petroleum titles in S. M. Morgan, “Title to Sue in Trespass to Land.with Particular Reference to Australian Mining Titles” [1983] A.M.P.L.A. Yearbook 283; S. V. MacCallum, “Overlapping Titles—Legal Problems” [1983] A.M.P.L.A. Yearbook 299 at 338–340.
  • See, e.g. Petroleum Act 1958 (Vic.), ss.39, 40. Cf. Geothermal Resources Act Stats. B.C., 1982, c.14, s.9; Petroleum Act 1937 (N.Z.), s.22.
  • Cf. Geothermal Energy Regulations 1961 (N.Z.). regs. 18,19; 30 U.S.C, s.1009.
  • See, e.g. Petroleum Act 1937 (N.Z.), s.40; Petroleum Act 1955 (N.S.W.), s.68; Geothermal Resources Act, Stats. B.C. 1982, c.14, ss.18, 19; 30 U.S.C, s.1017; Ariz. Rev. Stats. Ann., s.27–664, 665; Idaho Code Ann., s.42–4013; Oregon Rev. Stats., s.522.405.
  • For a discussion of unitization, see Sato and Crocker, op. cit. at 529 et seq., G. J. Kitchen, “Geothermal Leasing Practices” (1977) 13 Land and Water L. Rev. 25 at 56; T. E. Root, “Contents of a Geothermal Lease: Some Suggestions” (1976) 8 Nat. Res. Lawyer 659 at 667.
  • Root, op. cit. at 667.
  • See, e.g. Petroleum Act 1955 (N.S.W.), s.53ff; Petroleum Act 1958 (Vic.), ss.50(2), 60(1); Mines Act 1958 (Vic.), s.305 et seq.; Petroleum Act 1937 (N.Z.), s.39 et seq.
  • See, e.g. Geothermal Energy Act 1953 (N.Z.), s.13.
  • For a detailed discussion of environmental problems affecting geothermal development, see A. J. Bradbrook, “Environmental Controls Over Geothermal Energy Exploitation,” to be published in the Environmental and Planning Law Journal, Vol. 4 No. 1 (1987).
  • A. D. Tarlock and R. L. Waller, “An Environmental Overview of Geothermal Resources Development” (1977) 13 Land and Water L. Rev. 289 at 293, 310.
  • See Tarlock and Waller, op. cit. at 294; G. J. Kitchen, “Geothermal: The Resource, the Law and the Landman” (1976) 22 Rocky Mt. M.L. Inst. 821 at 833.
  • See A. J. Ellis, “Geothermal Energy,” in E. El-Hinnawi and A. K. Biswas (eds.), Renewable Sources of Energy and Environment, 37–38; Kitchen, op. cit. at 834; Vranesh and Musick, op. cit. at 117.
  • Tarlock and Waller, op. cit. at 310.
  • See Olpin, Tarlock and Austin, op. cit. at 874.
  • Department of Industry, Technology and Resources and Victorian Solar Energy Council, op. cit. at 104.
  • Olpin, Tarlock and Austin, op. cit. at 875; Tarlock and Waller, op. cit. at 313.
  • Department of Industry, Technology and Resources and Victorian Solar Energy Council, op. cit. at 19.
  • P. F. Windrem and G. L. Marr, “Environmental Problems and Geothermal Permitting” (1982) 14 Nat. Res. Lawyer 675 at 681; Tarlock and Waller, op. cit. at 294, 323; Kitchen, op. cit. at 835; Ellis, op. cit. at 38–39.
  • Windrem and Marr, op. cit. at 684.
  • See, e.g. Control of Pollution Act 1974 (U.K.).
  • If separate geothermal legislation is not enacted, it is submitted that the supplemental environmental measures should be located in an additional Part of the general environmental statute, which would apply only to geothermal resources.
  • See pp. 86–87, supra.
  • See, e.g. Groundwater Act 1969 (Vic.), s.20.
  • See also and cf. Petroleum Act 1955 (N.S.W.), s.62; Petroleum Act 1958 (Vic.), s.48; Petroleum Regulations 1979 (Vic.), regs. 206–216.
  • Cf. Ariz. Rev. Stats. Ann., s.27–660, which reads:
  • “Any person engaged in the drilling of a well for geothermal resources in an area wherein fluids, gases or steam under high pressure are known to exist, or any person drilling a well for geothermal resources in any area where pressures are not known, shall case in a watertight manner the borehole to a depth sufficient to protect against surface-cratering in the event of a blowout with pipe of adequate strength, and equip the well with a blowout preventor and other safety devices, in accordance with pipe and equipment specifications and procedures approved by the commission, and shall further exercise due caution in all drilling operations to prevent blowouts, explosions or fires.”
  • See pp. 93–95, supra.
  • See Petroleum Act 1958 (Vic.), s.49. See also various alternative approaches in Geothermal Energy Regulations 1961 (N.Z.), reg. 30(4); Geothermal Resources Act, Stats. B.C. 1982, c.14, S.16; Cal. Pub. Res. Code, ss.3728–3729, 3746–3751; Idaho Code Ann., ss.42–4007 to 4009; Ore. Rev. Stats., ss.522.175(1), 522.225(1), 522.245(1).

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