South Carolina General Assembly
105th Session, 1983-1984

Bill 320

                    Current Status

Bill Number:               320
Ratification Number:       428
Act Number:                375
Introducing Body:          Senate
Subject:                   To establish the ownership of geothermal
                           resources and regulate the use of the
                           resources
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A375, R428, S320)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 5 TO CHAPTER 9 OF TITLE 10, SO AS TO ESTABLISH THE OWNERSHIP OF GEOTHERMAL RESOURCES AND REGULATE THE USE OF THE RESOURCES AND TO AMEND ACT 179 OF 1977 RELATING TO OIL AND GAS AND THEIR PRODUCTS SO AS TO PROVIDE THAT ALL PROVISIONS RELATING TO LEASING, DRILLING, TRANSPORTING, AND PRODUCTION OF GAS AND OIL APPLY TO GEOTHERMAL RESOURCES TO THE EXTENT POSSIBLE AND TO EXCLUDE DRILLING FOR WATER SUPPLY FROM THE PROVISIONS OF ACT 179 OF 1977.

Be it enacted by the General Assembly of the State of South Carolina:

Geothermal resources

SECTION 1. The 1976 Code is amended by adding to Chapter 9 of Title 10:

"Article 5

Section 10-9-310. For purposes of this article geothermal resources mean the natural heat of the earth at temperatures greater than forty degrees Celsius and includes:

(1) The energy, including pressure, in whatever form present in, resulting from, created by, or that may be extracted from that natural heat.

(2) The material medium, including the brines, water, and steam naturally present, as well as any substance artifically introduced to serve as a heat transfer medium.

(3) All dissolved or entrained minerals and gases that may be obtained from the material medium but excluding hydrocarbon substances and helium.

Section 10-9-320. The State Budget and Control Board (board) may lease development rights to geothermal resources underlying surface lands owned by the State. The board must promulgate regulations regarding the method of lease acquisition, lease terms, and conditions due the State under lease operations. The South Carolina Water Resources Commission is designated as the exclusive agent for the board in selecting lands to be leased, administering the competitive bidding for leases, administering the leases, receiving and compiling comments from other state agencies concerning the desirability of leasing the state lands proposed for leasing and such other activities that pertain to geothermal resource leases as may be included herein as responsibilities of the board.

Section 10-9-330. Any lease of rights to drill for and use oil, natural gas, or minerals on public or private lands must not allow drilling for or use of geothermal energy by the lessee unless the instrument creating the lease specifically provides for such use."

Definition

SECTION 2. Section 1 of Part 1 of Act 179 of 1977 is amended by adding at the end:

"(V) 'Geothermal resources' mean the resources defined in Section 10-9-310 of the 1976 Code."

Applicability

SECTION 3. Part 1 of Act 179 of 1977 is amended by adding after Section 4:

"Section 4A. All provisions of this act regulating the leasing for, exploration for, drilling for, transportation of, and production of oil and gas and their products apply to geothermal resources to the extent possible. The provisions of this act do not apply to wells drilled for water supply only."

Time effective

SECTION 4. This act shall take effect upon approval by the Governor.