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Lessons from other jurisdictions One interviewee suggested that geothermal energy should fit under the legislation and regulations that exist for a mature industry, whether from mining or petroleum, as the capacity, efficiency and effectiveness of the regulators’ management of resources would have been tested.158 For shallow geothermal resources, some countries use water laws or rules for other surface activities to regulate the resources, in an effort to simplify and expedite the development of the resource. This is the case in New Zealand, where the resource is at high temperatures relatively close to the surface. If geothermal is not regulated directly but regulated under water legislation, the difference between geothermal and water should be defined in order to avoid conflict between water legislation and geothermal legislation. For example, Nevada defines geothermal resources in terms of extractable heat resources. By separate statute, Nevada law provides that the state’s water code does apply to use of fluid resources in geothermal projects, and then selectively excludes certain categories of water use (for geothermal production, followed by reinjection). Still there are many differences between geothermal energy development and other resource developments that should be reflected in the legislation and regulations, even if geothermal energy development is linked to legislation for another resource. For example, the environmental impacts and economics are unique to geothermal energy development. Some interviewees stated that new, separate legislation for geothermal energy development should be created to reflect the unique nature of the industry.159 Creating a separate geothermal energy act can take a long time, and in the interim, some jurisdictions choose to incorporate geothermal energy into legislation developed for another industry. In these cases separate regulations for geothermal energy may be created at a later date once the industry begins to mature. For example, in Queensland, Australia an exploration law was first created and then replaced later by more comprehensive legislation relating to both exploration and production, once the industry became more established. The risk with this approach is that the interim regulations may not be adequate to begin with and may restrict development through inadequate and poorly defined rules for the specifics of geothermal energy development. Geothermal specific legislation and regulations developed from the beginning would help to avoid the problems created by trying to fit geothermal energy management into the regulations for other resource developments. 4.3 Geothermal resource ownership Ownership of geothermal resources should be defined by law. The legislation should clarify who is responsible for issuing the right to explore, develop and produce geothermal energy. Lack of clarity on ownership can lead to conflict among surface and subsurface owners, as well as delays for project companies that can affect their ability to attract and maintain investors. Interviewees cited lack of certainty of resource ownership as a barrier to geothermal energy 158 Personal communication, Mory Ghomshei, University of British Columbia, November 10 2010. 159 Personal communication, Tim Sadlier-Brown, Sadlier-Brown Associates, November 1, 2010, and Gary Thompson, Sierra Geothermal Power Corp, October 17, 2010. The Pembina Institute 40 Building a regulatory framework for geothermal development in the NWTPDF Image | geothermal energy development in the NWT
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