The Law of Geothermal Resources: ABSTRACT

Abstract

The legal principles that will govern exploration for and utilization of resources are in their early development. Analogies with oil and gas laws and with mining laws are helpful, but novel characteristics of resources will require answers in addition to those found in these existing bodies of law. Private land owners have encouraged ventures by signing geothermal with operating companies. These are patterned after oil and gas leases with added provisions to deal with minerals in solution and other problems unique to resources. The lease seems to be working, and to date the only commercial ventures in this country are on privately owned lands taken under such leases. Existing federal law does not provide adequately for development of resources on the federal public domain. The need for specific legislation is recognized by both government and industry, but there is no agreement on the form this legislation should take. Pending the enactment of legislation, the Interior Department in 1967 made a controversial executive withdrawal of 1,051,000 acres of land having potential value for resources. State leasing laws have been enacted in California and New Mexico. The active exploration and development in California will help set important patterns for development of resources on publicly owned lands. The operator's obligations and liabilities are only partly defined by existing laws and regulations. Are exploration and production extrahazardous activities which will make operators strictly liable for damages, or is a negligence standard applicable? These are but two of many questions yet to be answered. End_of_Article - Last_Page 565------------