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water and hot brines, and geopressured waters; (2) steam and other gases, hot water and hot brines resulting from water, gas, or other fluids artificially introduced into geothermal formations; (3) heat or other associated energy found in geothermal formations; and (4) any by-product derived from them. The term "by-product" means any element found in a geothermal formation which when brought to the surface is not used in geothermal heat or pressure inducing energy generation” (Oberbeck, 1977). The Railroad Commission of Texas, Oil and Gas Division, has defined geopressure aquifers under its documentation “Rules having Statewide General Application to Oil, Gas, and Geothermal Resource Operations within the State of Texas,” (March 1982) as “a geopressure aquifer as having a pressure of greater than 0.5 pounds per square foot of depth and a temperature gradient in excess of 1.6°F per 100 feet of depth. The Texas Geothermal Resources Act of 1975 was amended in Vernon’s Texas Codes Annotated, Natural Resources, Section 141.002(5) to clarify “by-products” as: “any other element found in a geothermal formation which is brought to the surface, whether or not it is used in geothermal heat or pressure inducing energy generation”. This indicated that methane entrained in geothermal fluids is considered part of the geothermal resource which includes by-products, (Sherk, 1982). As geothermal energy is developed in Texas, there will be legal discussions. According to the SMU Geothermal Energy Utilization Conference presentations by Stepp (2009) and Gibson (2009) examples of potential legal issues include: Debate of ownership between the surface owner and mineral right owner. How does the rule of capture and trespass by fracturing impact geothermal projects? Is the brine fluid still categorized as drainage if other valuable minerals are extracted from the fluid but the remaining fluid or gas continues through the binary system? What if the valuable mineral is really defined as a waste in Texas but is now being used productively? If CO2 is utilized as a heat transmitter, and not emitted when extracted from the hydrocarbons is it considered a “waste”? Mineral owner may be liable for waste if not capturing heat from produced water. The most recent legislation is the Texas House Bill 4433, September 2009, which is an exemption from the severance taxes on oil and gas incidentally produced in association with the production of geothermal energy. 56PDF Image | Texas Geothermal Assessment for the I35 Corridor East
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