Existing law provides that, with certain exceptions, the consumptive use of water brought to the surface outside of a geothermal well is subject to the procedures governing the appropriation of water, except for: (1) water removed from an aquifer or geothermal reservoir to develop and obtain geothermal resources if the water is returned to or reinjected into the same aquifer or reservoir; and (2) the reasonable loss of water under certain circumstances. (NRS 534A.040) Section 1 of this bill instead provides that any consumptive or nonconsumptive use of water brought to the surface to develop and obtain geothermal resources is subject to these procedures. Section 1 also removes the exception for water removed from an aquifer or geothermal reservoir and instead creates an exception for water used for an exploratory well. Existing law provides that, with certain exceptions, the owner of real property owns the rights to the underlying geothermal resources. (NRS 534A.050) Section 2 of this bill clarifies that underground waters belong to the public and the use of such waters for the development of geothermal resources is subject to existing state laws governing the appropriation of water. Existing law requires a person to obtain a permit from the Administrator of the Division of Minerals of the Commission on Mineral Resources and comply with the conditions of the permit before he or she may drill or operate a geothermal well or drill an exploratory well. (NRS 534A.060) Sections 3 and 4 of this bill require a person to obtain a permit to appropriate water from the State Engineer before he or she may drill or operate such a well, if the well uses water that is subject to the procedures governing the appropriation of water. Existing law provides that ownership of dissolved mineral resources is determined by the applicable federal and state laws and regulations. (NRS 534B.010) Section 5 of this bill clarifies that underground waters containing dissolved mineral resources belong to the public and are subject to state laws governing the appropriation of water. Existing law exempts from the procedures governing the appropriation of water the reasonable loss of water of not more than 5 acre-feet during the testing and sampling of water pumped within a dissolved mineral resource exploration project. (NRS 534B.110) Existing law also requires a person seeking to drill a dissolved mineral resource exploration well to obtain a permit from the Administrator. (NRS 534B.080) Section 6 of this bill requires that, upon receipt of an application for such a permit, the Administrator must transmit the application to the State Engineer for review. If the State Engineer determines that the application may interfere with existing rights or protectable interests in existing domestic wells or threaten the public interest, section 6 requires the applicant to obtain a permit to appropriate water before he or she may proceed with the application. Section 8 of this bill provides that this requirement is an exception to the exemption for the reasonable loss of water of not more than 5 acre-feet. Existing law requires, with certain exceptions, the Administrator to approve or reject an application to drill a dissolved mineral resource exploration well within 30 days after receiving the application. (NRS 534B.090) Section 7 of this bill provides an exception from this requirement if the State Engineer requires the applicant to obtain a permit to appropriate water.

Statutes affected:
As Introduced: 534A.040, 534A.050, 534A.060, 534A.070, 534B.010, 534B.080, 534B.090, 534B.110
BDR: 534A.040, 534A.050, 534A.060, 534A.070, 534B.010, 534B.080, 534B.090, 534B.110