reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-535 - Status and powers of unit; liability and expenses; lien

27-535.
Status and powers of unit;  liability and expenses;  lien
A. The obligation or liability of the lessees or other owners of the oil and gas rights in the several separately owned tracts for the payment of unit expense shall at all times be several and not joint or collective and in no event shall a lessee or other owner of the oil and gas rights in the separately owned tract be chargeable with,  obligated or liable,  directly or indirectly,  for more than the amount apportioned,  assessed or otherwise charged to his interest in such separately owned tract pursuant to the plan of unitization and then only to the extent of the lien provided for in this article.
B. Subject to such reasonable limitations as may be set out in the plan of unitization,  the unit shall have a first and prior lien upon the leasehold estate and all other oil and gas rights (exclusive of one-eighth landowners' royalty interest) in and to each separately owned tract,  the interest of the owners thereof in and to the unit production and all equipment in the possession of the unit,  to secure the payment of the amount of the unit expense charged to and assessed against such separately owned tract. The interest of the lessee or other persons who by lease,  contract or otherwise are obligated or responsible for the cost and expense of developing and operating a separately owned tract for oil and gas in the absence of unitization shall,  however,  be primarily responsible for and charged with any assessment for unit expense made against such tract and resort may be had to overriding royalties,  oil and gas payments,  royalty interests in excess of one-eighth of the production,  or other interests which otherwise are not chargeable with such costs,  only in the event the owner of the interest primarily responsible fails to pay such assessment or the production to the credit thereof,  is insufficient for that purpose. In the event the owner of any royalty interest,  overriding royalty,  oil or gas payment,  or any other interest which under the plan of unitization is not primarily responsible therefor pays in whole or in part the amount of an assessment for unit expense for the purpose of protecting such interest or the amount of the assessment in whole or in part is deducted from the unit production to the credit of such interest,  the owner thereof shall to the extent of such payment or deduction be subrogated to all the rights of the unit with respect to the interest or interests primarily responsible for such assessment. A one-eighth part of the unit production allocated to each separately owned tract shall in all events be regarded as royalty to be distributed to and among,  or the proceeds thereof paid to,  the royalty owners free and clear of all unit expense and free of any lien therefor.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-537 - Enlargement of area; creation of new units; amendment of plan

27-537.
Enlargement of area;  creation of new units;  amendment of plan
The unit area of a unit may be enlarged to include adjoining portions of the same pool,  including the unit area of another unit,  and a new unit created for the unitized management,  operation and further development of such enlarged unit area,  or the plan of unitization may be otherwise amended,  all in the same manner,  upon the same conditions and subject to the same limitations as provided in this article with respect to the creation of a unit in the first instance;  except that where the amendment to the plan of unitization relates only to the rights and obligations as between lessees the requirement that the same be signed,  ratified and approved by royalty owners of record of not less than sixty-three per cent of the unit area shall have no application.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-539 - Validation of unit agreements

27-539.
Validation of unit agreements
An agreement for the unit or cooperative development and operation of a field,  pool,  or part thereof,  may be submitted to the commission for approval as being in the public interest or reasonably necessary to prevent waste. Such approval shall constitute a complete defense to any suit charging violation of any statute of the state relating to trusts and monopolies on account thereof or on account of operations conducted pursuant thereto. The failure to submit such an agreement to the commission for approval shall not for that reason imply or constitute evidence that the agreement or operations conducted pursuant thereto are in violation of laws relating to trusts and monopolies.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-551 - Definitions

27-551.
Definitions
In this article,  unless the context otherwise requires:
1. " Arizona refinery business"  means a firm which markets in this state the product refined from royalty oil purchased under this article and which either owns and controls an oil refinery located within this state or is an Arizona corporation which owns an oil refinery in the United States located within one hundred miles of this state.
2. " Completion operations"  means work performed in an oil or gas well after the well has been drilled to the point where the production string of casing is to be set,  including setting the casing,  perforating,  artificial stimulation,  production testing and equipping the well for production,  all prior to the commencement of the actual production of oil or gas in paying quantities,  or in the case of an injection or service well,  prior to when the well is ready for use,  or in the case of a dry hole,  prior to when the well is plugged and abandoned.
3. " Department"  means the state land department.
4. " Drilling operations"  means any work or actual physical or mechanical operations undertaken or commenced in good faith for the purpose of bringing about the production of oil or gas in paying quantities,  including the preparation of drill sites,  followed diligently and in reasonable due course by the mobilization of a drilling rig and other necessary structures for the drilling of an oil or gas well and by actual drilling in the ground.
5. " Lease"  means an oil and gas lease issued,  extended or amended pursuant to the provisions of this article.
6. " Lessee"  means the holder of an oil and gas lease issued pursuant to this article and includes any assignee of an original lessee.
7. " Oil and gas"  and " oil or gas"  includes oil,  gas,  other hydrocarbon substances,  and helium or other substances of a gaseous nature.
8. " Produced"  includes the words " procured and produced" .
9. " Refinery charge stocks"  means crude oil,  liquid petroleum or gas condensate and blends of such products and all other products charged or chargeable to petroleum refinery facilities.
10. " Reworking operations"  means work performed at any depth on a well after its initial completion in an effort to secure production where there has been none,  or to restore production that has ceased or to increase production.
11. " Royalty oil"  means crude oil,  liquid petroleum products or gas condensates from wells or lease plants or a mixture of such products.
12. " State lands"  means any land or any interest therein owned or held in trust or otherwise by the state,  including but not limited to leased school or university lands.
13. " Surface lease"  means a lease on the surface of any state land for grazing,  agricultural,  commercial or homesite purposes.
14. " Surface lessee"  means the holder of a lease on the surface of any state land for grazing,  agricultural,  commercial or homesite purposes.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-554 - Designation of known geological structures of producing oil and gas fields

27-554.
Designation of known geological structures of producing oil and gas fields
A. The department shall from time to time determine and designate the known geological structures of producing oil and gas fields. The determinations and designations shall be published twice in a newspaper of general circulation in the state,  the last publication to be not less than five days from the first date of publication. The determinations and designations shall become effective from the date of first publication. Until such a determination and designation is made by the department,  all state lands shall be deemed located not within any known geological structure of a producing oil and gas field.
B. The department may refuse to lease any state lands for oil and gas when the lands are being used by the state or any state department for a state purpose.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-559 - Development of water for use in operations; taking over well which yields fresh water

27-559.
Development of water for use in operations;  taking over well which yields fresh water
A. A lessee shall have the right to develop water for use in its operations subject to the applicable laws of the state pertaining to drilling water wells and using water produced therefrom.
B. If any well drilled for oil or gas on a lease issued pursuant to this article fails to develop oil or gas in paying quantities but develops fresh water,  the department shall have the option to take over the well if the lessee determines to abandon it as an oil or gas well upon payment by the department to the lessee of the reasonable value of the well casing and other materials necessary to be left in the well,  and the lessee shall thereupon be relieved of all further obligations with respect to the well,  its completion and abandonment.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-560 - Surface use by lessee; liability for damages; bond; appraisal of damages; appeal

27-560.
Surface use by lessee;  liability for damages;  bond;  appraisal of damages;  appeal
The lessee shall have the right to use as much of the surface of the lands as reasonably necessary for its operations under the lease. The lessee shall be liable for damage caused by it to the state's interest in the surface or to the interest of the surface lessee,  if any,  and may be required by the department at any time to execute a bond in a reasonable principal amount conditioned upon payment for all such damage. If the lessee and the surface lessee cannot agree on the amount of damage,  it shall be appraised by the department or its agent. Appeal from the appraisal may be taken as provided in section 37-214.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-561 - Assignment of lease; recording

27-561.
Assignment of lease;  recording
A. In event of the assignment of a lease as to a segregated portion of the land covered thereby,  the rentals payable thereunder shall be apportionable between the several leasehold owners ratably according to the surface area of each. Default in rental payment by one shall not affect the rights of other leasehold owners under the lease. If the lease is assigned in whole or in part,  liability for the breach of any obligation under the lease shall rest exclusively upon the owner of the lease or the portion thereof who commits the breach.
B. All leases issued under the provisions of this article shall be assignable in whole or in part,  but any assignment of a part of a lease shall cover not less than a quarter of a quarter section or the approximate equivalent thereof.
C. All assignments shall be on forms prescribed by the department and shall be filed with the department within ninety days from the date when made by depositing a duplicate executed original or a copy thereof certified by a notary public. The department shall retain in its files executed duplicate originals of all issued leases and of all assignments deposited with it. All leases and assignments shall be recorded,  as other leases are recorded,  in tract books kept for that purpose by the department.
D. All leases on file and all assignments filed with the department shall be constructive notice to all persons of the contents thereof.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-562 - Surrender

27-562.
Surrender
A lessee may surrender any part or all of the lands covered by the lease at any time upon payment to the department of all amounts then due as to the lands surrendered,  but no refund of any part of the cash consideration or rental theretofore paid shall be made to the lessee upon such surrender.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-563 - Payment of noncompetitive lease royalties in kind or cash

27-563.
Payment of noncompetitive lease royalties in kind or cash
Royalties payable to this state under section 27-555,  subsection B are payable in kind or in cash at the option and demand of the department. The lessee shall pay royalties in cash unless the department elects to receive royalty oil in kind pursuant to this article. The commissioner shall base this determination on what is in the best interest of the trust.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-564 - Receipt and sale of royalty oil

27-564.
Receipt and sale of royalty oil
A. The department on its initiative and with the approval of the selection board may elect to receive royalty oil in kind from a lessee in lieu of a cash royalty,  and the department may resell such royalty oil in the manner provided by the selection board.
B. An Arizona refinery business may request the department to elect to receive a quantity certain of royalty oil to be resold during a period of not less than one hundred eighty days by the department at a time contemporaneous with receipt of the royalty oil by the department. The department,  on receipt of a due,  proper and complete application by an Arizona refinery business,  may,  without approval of the selection board,  elect to receive and sell such royalty oil pursuant to section 27-567.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-565 - Application to purchase royalty oil

27-565.
Application to purchase royalty oil
A. An Arizona refinery business may apply to the department to purchase royalty oil which the department elects to receive from a lessee. The application shall be filed not more than fifteen weeks nor less than thirteen weeks before the date of sale of the royalty oil by the department. The application shall be in the nature of a request and an offer to purchase which becomes irrevocable after the department sends notice of the election to the lessee as provided in section 27-566. The offer may be revoked by the applicant at any time before the date of sale upon the written agreement of the lessee and payment of all costs incurred by the department.
B. The application shall be in a form prescribed by the department containing the following information:
1. The full name and address of the applicant,  the location of the refinery and a complete disclosure of the applicant's affiliation with any other petroleum refiner if such relationship exists.
2. The capacity of the refinery to be supplied with refinery oil and the amount,  source and grade of all refinery oil currently available to the applicant by purchase.
3. The amount and grade of refinery oil which the applicant desires to purchase.
4. The field or fields which the applicant believes offer a potential source of refinery charge stocks due to quality,  the proximity to the refinery and available transportation facilities which the applicant proposes to utilize.
C. The department shall examine each application. If the department finds that the application is incomplete,  the department shall so advise the applicant within one week of the date that the application was filed with the department,  and the applicant may amend the application within ten days. If the department finds the application to be complete,  the department shall so advise the applicant within one week. If the department fails to provide the notice prescribed by this subsection,  the application is deemed to be complete.
D. Upon approval of the application,  the applicant shall file the bond or other assurances required by the department pursuant to section 27-570.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-566 - Notice to lessee of election; storage

27-566.
Notice to lessee of election;  storage
A. Not less than eleven weeks before the sale of royalty oil by the department,  the department shall give the lessee written notice of the department's election to receive the quantity of royalty oil on the date specified by the department.
B. If the notice of election is pursuant to an application to purchase by an Arizona refining business,  the quantity shall not be less than the amount applied for.
C. Written notice shall be served on the lessee at the lessee's business office address in this state on file with the department by certified mail or by personal service in the same manner as for a civil action in superior court. Service is deemed complete and notice given on the date of mailing the notice.
D. Upon receipt of the notice of election,  the lessee shall immediately advise the department by certified mail of the location of the storage facility to which the lessee will deliver the royalty oil. The lessee shall deliver such quantity and quality at the time specified by the department into accessible storage and store it as the property of the department without storage cost to the department for not more than ten days after the date of sale. Within such time the lessee shall allow free and undisturbed access to the department's buyer to remove the stored royalty oil without cost to the buyer except for the costs of sale due to the department. For purposes of this section,  " accessible storage"  means whatever facilities are available to the lessee. Nothing in this section shall require the construction or maintenance by the lessee of additional facilities for the storage of or access to royalty oil.
E. Upon sale and payment by the buyer,  the buyer is deemed to be the owner of the subject royalty oil for all purposes.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-567 - Sales of royalty oil

27-567.
Sales of royalty oil
A. The royalty oil which the department receives pursuant to an election under section 27-564 shall be offered for sale by the department at 10:00 a.m. on the date of delivery of the royalty oil to the department.
B. The application fee and procedure for sale shall be as prescribed by title 37,  chapter 2 for the sales of state lands.
C. The department shall determine the quantity of royalty oil to be included in each sale,  except that for a sale pursuant to an application by an Arizona refinery business,  the quantity of each sale shall be the same quantity as applied for in each application.
D. The minimum sales price for the royalty oil shall be the fair market price for the royalty oil on the date of sale.
E. The highest and best bidder is the bidder who offers to pay the greatest amount of money for the royalty oil. If all bidders offer the same amount for the royalty oil,  the Arizona refinery business which applied for the royalty oil shall be declared the highest and best bidder.
F. The department shall declare the highest and best bidder at the conclusion of the public auction. The commissioner may reject any or all bids offered for the royalty oil at the public auction prior to the acceptance of a final bid,  if any,  when the commissioner determines that such action is necessary to protect the trust. A person adversely affected by a decision may appeal the decision to the board of appeals as provided in section 37-215.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-569 - Prohibitions on resale

27-569.
Prohibitions on resale
Sale of royalty oil under this article is for processing or use in the purchaser's refineries but not for resale in kind. Agreements providing for the exchange of refinery charge stocks on a volume or equivalent value basis are not a resale in kind prohibited by this section. If an exchange agreement has been entered into or is contemplated with regard to royalty oil available for sale,  full information relating to such fact shall be furnished to the department either at the time of filing applications to purchase royalty oil or with the submission of a bid.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-570 - Bond and penalties; waiver

27-570.
Bond and penalties;  waiver
A. If the department requires a bond to guarantee performance by the buyer,  the amount shall be based on the average price of royalty oil sold in this state during the preceding month. If no royalty oil was sold in this state during the preceding month,  the amount of the bond shall be established by the commissioner based upon the prevailing market price for refinery charge stocks of similar composition sold in Arizona or in a surrounding state or states,  or upon the national average sales price for such refinery charge stocks,  whichever is greater.
B. The department may execute on the bond for all unpaid department costs and losses.
C. The department may waive the requirement for a bond on assurances made by the applicant satisfactory to the department.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-571 - Inspecting well records; trade secrets; confidentiality; definition

27-571.
Inspecting well records;  trade secrets;  confidentiality;  definition
A. The state land commissioner or the commissioner's agent may inspect any well records that are required to be filed with the oil and gas conservation commission but shall keep confidential all information that is not subject to inspection as provided by section 27-522.
B. For the proper administration of state land,  the state land commissioner may require a lessee to submit relevant engineering and feasibility studies and other economic and technical information that is considered to be a trade secret in the oil and gas industry.
C. Trade secret information obtained under this section is confidential.
D. For purposes of this section,  " trade secret"  means information to which all of the following apply:
1. A person has taken reasonable measures to protect the information from disclosure and the person intends to continue to take those measures.
2. The information is not and has not been reasonably obtainable by legitimate means by other persons without the person's consent,  other than by governmental entities and other than in discovery based on a showing of special need in a judicial or quasi-judicial proceeding.
3. A statute does not specifically require disclosure of the information to the public.
4. The person has satisfactorily shown that disclosing the information is likely to cause substantial harm to the person's competitive position.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-601 - Authorization to enter compact

27-601.
Authorization to enter compact
The governor is authorized and directed,  for and in the name of the state,  to join with the other states in the interstate oil compact to conserve oil and gas,  which was executed in the city of Dallas,  Texas,  on February 16,  1935,  and is now on deposit with the United States department of state as extended,  all with the consent of the Congress.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-602 - Extension of expiration date

27-602.
Extension of expiration date
The governor is authorized,  for and in the name of the state,  to execute agreements for the further extension of the expiration date of the interstate compact to conserve oil and gas,  and to determine if and when it is to the best interest of the state to withdraw from the compact following a sixty-day notice as provided by its terms. In the event of withdrawal,  the governor may in his discretion effect the reentry of the state into the compact as provided in this article.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-603 - Official representative

27-603.
Official representative
The governor shall be the official representative of the state on the interstate oil compact commission provided for in the compact,  and shall exercise and perform for the state all the powers and duties as a member of the commission. The governor may appoint an assistant representative who shall act in his stead as the official representative of the state as a member of the commission. Such official representative,  if not a state official,  shall take the oath of office prescribed by law and file it with the secretary of state.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-652 - Supervision by commission

27-652.
Supervision by commission
A. The commission shall so supervise the drilling,  operation,  maintenance and abandonment of geothermal resource wells as to encourage the greatest ultimate economic recovery of geothermal resources,  to prevent damage to and waste from underground geothermal reservoirs,  to prevent damage to or contamination of any waters of the state or any formation productive or potentially productive of fossil fuels or helium gas,  and to prevent the discharge of any fluids or gases or disposition of substances harmful to the environment by reason of drilling,  operation,  maintenance or abandonment of geothermal resource wells.
B. Any person engaged in the drilling of a well for geothermal resources underlying a usable groundwater aquifer shall case the bore hole in a watertight manner from the land surface to the geothermal producing zone or to a depth sufficient to prevent damage or contamination of the aquifer from the escape of geothermal resources from the bore hole. Materials and installation procedures for casing and sealing of the bore hole shall be in accordance with specifications and procedures approved by the commission.
C. Disposal of water or brines obtained from a geothermal well whether by ponding and evaporation,  release to a watercourse or other means shall not damage or contaminate the underlying groundwater aquifer or pollute any stream,  river or body of surface water. Construction and maintenance of all geothermal water and brine disposal systems and of the devices required to monitor quantity and quality of the waters and brines disposed of in each system shall be in accordance with specifications,  procedures and regulations approved by the commission.
D. Whenever the commission finds that it would be in the interest of maintenance of the underground geothermal resource,  prevention of subsidence of the land surface or maintenance of the quality of surface and other ground waters,  the commission may require reinjection of the geothermal effluent or injection of other water supplies into the producing zones.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-653 - Information; filing; confidentiality

27-653.
Information;  filing;  confidentiality
The commission shall collect all information regarding all wells drilled in the state for geothermal resources and necessary for the purpose of supervision of such wells. All such data shall be filed in the commission office and,  upon request of the operator,  shall be kept confidential for a period of not more than one year after drilling is completed. All such data shall also be available to the director of water resources,  who shall keep the information obtained confidential when such a request has been made of the commission by the operator.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-654 - Drilling bond; amount; responsibility

27-654.
Drilling bond;  amount;  responsibility
A. The commission shall require every person who engages in the drilling,  ownership or operation of a well,  or the entering or deepening of an abandoned well,  to file with the commission,  on a form to be determined by the commission,  a reasonable bond with good and sufficient security conditioned upon the performance of the duties required by this section and the duties upon abandonment,  as approved by the commission,  of the well in an amount to be determined by the commission.
B. In no case may the bond be less than five thousand dollars for each individual well or less than twenty-five thousand dollars for any number of wells.
C. The bond shall remain in full force and effect until all requirements of the commission have been satisfied or until otherwise released by the commission.
D. The owner or operator is responsible for the full cost of plugging each dry or abandoned well. If the owner or operator fails to properly plug and abandon the well,  the commission may:
1. Forfeit the bond and use the money for that purpose.
2. Sue the owner or operator for costs in excess of the amount of the bond and the owner or operator is liable for that amount.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-655 - Commission approval prior to operation; information; hearing

27-655.
Commission approval prior to operation;  information;  hearing
The commission shall have jurisdiction over any stimulation,  induction or creation of a geothermal resource. Prior to any operation involving the stimulation,  induction or creation of a geothermal resource,  or any combination thereof,  approval of the commission must be obtained. All information deemed necessary by the commission concerning such operations shall be submitted to the commission in such form as determined by the commission no later than thirty working days prior to a commission hearing to consider approval of said application. No application to stimulate,  induct or create a geothermal resource will be approved by the commission except after notice and hearing as set forth in section 27-656.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-656 - Rules and orders; hearing

27-656.
Rules and orders;  hearing
A. The commission shall adopt rules necessary for the proper administration and enforcement of this article.
B. The commission shall comply with title 41,  chapter 6 in adopting,  modifying,  renewing or extending rules under this article.
C. Any order,  or change,  renewal or extension of an order,  except as otherwise provided by this article,  shall be made in compliance with title 41,  chapter 6,  article 10.
D. If the commission makes a finding that an order is necessary as an emergency measure,  the order may be made without first complying with the notice and hearing requirements prescribed by title 41,  chapter 6,  article 10. All affected persons shall be notified of the emergency order. If oral notice is given,  it shall be followed by immediate written notice. The emergency order shall be valid for thirty days from its effective date. The effective date is the date affected persons receive the order by oral or written communication,  whichever occurs first. The commission shall hold a hearing within ten days after the effective date of the emergency order. Unless otherwise provided in this section,  the hearing shall be conducted in compliance with title 41,  chapter 6,  article 10. Any order made at the hearing shall expressly repeal the emergency order. For purposes of this subsection,  " emergency"  means a situation which requires an order without compliance with the notice provisions prescribed in title 41,  chapter 6,  article 10 because the order is necessary for immediate preservation of the public safety,  welfare,  natural resources or property and the notice and hearing requirements are impracticable.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-657 - Agent for process

27-657.
Agent for process
Every owner or operator of any well shall designate an agent who resides in this state upon whom may be served all orders,  notices and processes of the commission or of any court of law. Every person so appointing an agent shall,  within ten days after the termination of any such agency,  notify the commission,  in writing,  of such termination,  and unless operations are discontinued,  shall appoint a new agent within such ten day period.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-658 - Notice of sale or conveyance of well or land

27-658.
Notice of sale or conveyance of well or land
A. The owner or operator of any well shall notify the commission in writing on such form as the commission may direct of the sale,  assignment,  transfer or conveyance or exchange by the owner or operator of such well and the land owned or leased upon which the well is located within ten days following such sale,  assignment,  transfer,  conveyance or exchange. The notice shall contain:
1. The name and address of the person to whom such well was sold,  assigned,  transferred,  conveyed or exchanged.
2. The name and location of the well.
3. The date of the sale,  assignment,  transfer,  conveyance or exchange.
B. Every person who acquires ownership or operation of any well,  whether by purchase,  assignment,  transfer,  conveyance,  exchange or otherwise,  shall,  within ten days after acquiring the well,  notify the commission in writing of his ownership or operation and provide a bond as required by section 27-654. The notice shall contain:
1. The name and address of the person from whom the well was acquired.
2. The name and location of the well.
3. The date of acquisition.
4. The date when operations are assumed or resumed by the new owner.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-659 - Application to drill

27-659.
Application to drill
The owner or operator of any property,  before commencing the drilling of a well or entering or deepening an abandoned well,  shall file with the commission an application to drill,  on a form prescribed by the commission,  containing such information as may be required by the commission. Such application shall be accompanied by a fee of twenty-five dollars per well. All monies so received by the commission shall be deposited,  pursuant to sections 35-146 and 35-147,  in the state general fund.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-660 - Safety requirements

27-660.
Safety requirements
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 blow out with pipe of adequate strength,  and equip the well with a blow out 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 blow outs,  explosions or fires.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-661 - Drilling record; samples

27-661.
Drilling record;  samples
The owner or operator of any well shall keep,  or cause to be kept,  a log,  core record and drilling history,  copies of which shall be filed with the commission no later than thirty days following the completion of drilling the well. A complete set of samples of the drill bit cuttings and cores,  at intervals and in the manner specified by the commission,  shall be furnished to the commission.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-663 - Unlawful interference; classification

27-663.
Unlawful interference;  classification
Any owner or operator or employee thereof who knowingly refuses to permit the commission to inspect a well or who knowingly hinders or delays enforcement of the provisions of this chapter,  and every person,  whether as principal agent,  servant or employee,  or otherwise,  who violates or knowingly fails or refuses to comply with the provisions of this chapter,  or who knowingly fails or refuses to furnish any reply or record or information which may be requested pursuant to the provisions of this chapter or who knowingly renders a false or fraudulent report,  shall be guilty of a class 2 misdemeanor as set forth in section 27-527.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-664 - Cooperative development agreements; unitization

27-664.
Cooperative development agreements;  unitization
Whenever the commission finds that it is in the interest of the protection of the geothermal resources of this state from unreasonable waste,  the lessors,  lessees,  operators,  owners or other persons holding or controlling royalty or other interest in separate properties within the same productive or prospectively productive geothermal area may,  with the approval of the commission,  enter into agreement for the purpose of bringing about the cooperation,  development and operation of all or a portion of the geothermal resources area as a unit,  or for the purpose of fixing the time,  location and manner of drilling and operating of wells for the production of geothermal resources within such area or portion thereof. Any such agreement shall bind the successors and assigns of the parties thereto and shall be enforceable by the parties thereto by an action for a specific performance. No such agreement,  when approved by the commission,  shall be held to violate any of the statutes of this state prohibiting monopolies or acts,  arrangements,  agreements,  contracts,  combinations or conspiracies in restraint of trade or commerce. Property rights,  leases,  contracts and all other rights and obligations shall be regarded as amended and modified to the extent necessary to conform to the provisions and requirements of this section.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-665 - Unitization; requirements

27-665.
Unitization;  requirements
A. No order of the commission creating a unit and prescribing the plan of unitization applicable thereto shall become effective unless and until the plan of unitization has been signed,  or in writing ratified or approved by the owner or lessees of record of not less than sixty-three per cent of the unit area affected thereby and by owners of record of not less than sixty-three per cent,  exclusive of royalty interest owned by lessees or by subsidiaries of any lessee,  of the royalty interest in and to the unit area,  and the commission has made a finding either in the order creating the unit or in a supplemental order that the plan of unitization has been so signed,  ratified or approved by the owner,  lessees or royalty owners owning the required percentage interest in and to the unit area. Where the plan of unitization has not been so signed,  ratified or approved by the owner,  lessees or royalty owners owning the required percentage interest in and to the unit area at the time the order creating the unit is made,  the commission shall,  upon petition and notice,  hold such additional and supplemental hearings as may be requested or required to determine if and when the plan of unitization has been so signed,  ratified or approved by owner,  lessees or royalty owners owning the required percentage interest in and to the unit area and shall,  in respect to such hearings,  make and enter a finding of its determination in such regard. If the owner,  lessees or royalty owners owning the required percentage interest in and to the unit area have not so signed,  ratified or approved the plan of unitization within a period of six months from and after the date on which the order creating the unit is made,  the order creating the unit shall cease to be of further force and effect and shall be revoked by the commission.
B. An order providing for unit operations may be amended by an order made by the commission,  in the same manner and subject to the same conditions as an original order providing for unit operations,  provided:
1. If such an amendment affects only the rights and interests of the owners,  the approval of the amendment by the royalty owners shall not be required.
2. No such order of amendment shall change the percentage for allocation of geothermal resources as established for any separately owned tract by the original order,  except with the consent of all persons owning interest in such tract.
C. The commission,  by an order,  may provide for the unit operation of a pool or a part thereof that embraces a unit area established by a previous order of the commission. Such order,  in providing for the allocation of unit production,  shall first treat the unit area previously established as a single tract,  and the portion of the unit production so allocated thereto shall then be allocated among the separately owned tracts included in such previously established unit area in the same proportions as those specified in the previous order.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-667 - Relationship of geothermal resources to water laws

27-667.
Relationship of geothermal resources to water laws
A. Geothermal resources and their development shall be exempt from the water laws of this state unless either:
1. Such resources are commingled with surface waters or groundwaters of this state.
2. Such development causes impairment of or damage to the groundwater supply.
B. In the development of geothermal resources,  any well drilled to obtain and use groundwater,  as defined in section 45-101,  shall be subject to the water laws of this state.
C. An operator shall notify the director of water resources of any well which is drilled or abandoned. The director may prescribe rules and regulations relating to the disposition of abandoned wells.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-668 - Leasing state lands for development of geothermal resources

27-668.
Leasing state lands for development of geothermal resources
A. The department may lease state lands for the development of geothermal resources and sell geothermal resource leases as provided in this article.
B. The department may prescribe rules and regulations necessary and appropriate to carry out the purposes of this section and to protect the environment and provide for multiple,  dominant or single use in the best interest of the state.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-669 - Designation of known geothermal resource areas

27-669.
Designation of known geothermal resource areas
The department may determine and designate the known geothermal resource areas. The determinations and designations shall be published twice in a newspaper of general circulation in this state,  the last publication to be not less than five days from the first date of publication. The determinations and designations shall become effective from the date of first publication. Until such a determination and designation is made by the department,  all state lands shall be deemed not located within any known geothermal resource area.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-670 - Lease of state lands; application; call for bids; publication; withdrawal of lands from leasing

27-670.
Lease of state lands;  application;  call for bids;  publication;  withdrawal of lands from leasing
A. Applications for leases shall be in writing addressed to the department and shall contain a description of the lands sufficient to identify them,  the name and address of the applicant and shall be accompanied by a filing fee of twenty-five dollars. Each application shall be stamped when received by the department with a stamp showing the day and hour when received.
B. Before offering any state lands for lease the department shall determine the tract or tracts into which the lands shall be divided for leasing purposes. All tracts shall be in reasonably compact form.
C. Upon receipt of an application to lease any state lands,  the department shall offer the tract or tracts for lease to the highest and best bidder. The bidding shall be on the basis of highest first year's bonus to be paid to the department at the time of declaration of the highest and best bidder.
D. The department shall publish a call for bids in the same manner provided for the sale of state lands. On or before December 1 each year,  the department shall designate by general order the newspaper at the capital in which the publications shall be made during the following calendar year. The successful bidder shall pay the cost of the publication and the reasonable expenses of the sale.
E. The publication shall contain a description of the land proposed to be leased,  the time when the bids will be received,  the royalty to be demanded which the department shall fix prior to call for bids and an annual rental to be demanded.
F. The publication shall set forth the form of lease which the successful bidder will be required to execute. In lieu of publishing the form of lease in its entirety the publication may specify the form of lease by designating the form number of the lease on file with the department,  copies of which shall be furnished any person on request.
G. Each offer for lease shall reserve the right in the department to reject any and all bids and to again offer the tract or tracts for lease if the bids received are not acceptable to the department.
H. No bid may be accepted unless the bidder,  or the bidder's disclosed principal,  qualifies under the provisions of section 37-240,  subsection B.
I. The department may withdraw from leasing any specific area of land if it appears that the withdrawal is in the interest of this state.
J. The department may refuse to lease any state lands for development of geothermal resources and may refuse to sell geothermal resource leases when such refusal is deemed by the department to be in the best interest of the state.
K. The department shall return all checks accompanying rejected bids.
2023 Arizona Revised Statutes › Title 27 - Minerals, Oil and Gas › § 27-671 - Provisions of lease

27-671.
Provisions of lease
A. The leases shall provide for the payment by the lessee of a royalty of not less than twelve and one-half per cent of the gross value of the resource at the well head.
B. The leases shall provide for an annual rental of not less than one dollar per acre for each year that the lease is in effect.
C. The leases shall be for a primary term of ten years and as long thereafter as geothermal resources are procured and produced in paying quantities from the leased lands. The lease upon which drilling operations are being diligently prosecuted on the expiration date shall continue in effect for a period of two years and so long as geothermal resources are procured and produced in paying quantities from such lands.
D. The leases shall contain other terms and provisions,  not inconsistent with the provisions of this article or other laws of this state,  as in the opinion of the department are for the best interest of this state.
E. Not more than two thousand five hundred sixty acres of land shall be included in any one lease. The leased lands shall be in as compact a body as possible but may include noncontiguous land.
F. Each lease shall provide that any combination,  understanding or agreement entered into by the lessee,  written,  verbal or otherwise,  for the purpose of delaying discovery or development of geothermal resources is an illegal practice,  and that upon legal determination of such practice shall constitute grounds for cancellation of the lease. Appropriate proceedings shall be instituted by the attorney general against the lessee in the county in which the land or any part of such land is located. The provisions of this section shall not apply to a unit plan or operation entered into under the provisions of this article or to any plan or operation authorized by any conservation law of this state.