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Legal Investigation “Can the resource be legally harnessed?” Legal issues often become some of the greatest obstacles in the development of many geothermal ventures. A thorough legal analysis will clearly identify potential issues with the site, amount of power produced, or other issues that could pose serious threats to the project. In the United States, the highest quality geothermal fields, such as in Yellowstone, are closed to all development. What are the governing bodies of the area? • Federal, State, Local • Geologic (Ex. Texas Railroad Commission) • Environmental (Ex. EPA) • Utility companies? • Lobbyists, etc. Is the resource in an area approved for development? • What state, county, city permits are needed? • Can you drill/inject in this area? • What zoning laws exist that threaten the project? Noise bans, visible emission bans, aesthetic rules and regulations? • What protocols are required in order to legally produce and sell power in your area? • What is the interconnectivity charge to load your power onto the grid? How do you get the rights to the resource? • It is important to note that in the state of Texas geothermal waters are considered a “mineral” and are subject to Texas mineral laws. • Who owns the mineral rights? • Who owns the surface land rights? • How much will it cost to get the rights? • • • • What environmental rules exist that could benefit/ threaten your project? Do any tax credits, stimulus packages, or other incentives exist that could benefit your project? What environmental protocols exist regarding drilling and fluid reinjection? What environmental protocols exist regarding emissions? (Note: Texas’ geothermal resources are most efficiently harnessed by binary power plants, which give off no emissions.) What hydrocarbon rules exist that could impact your project? Are there any tax benefits from producing both hydrocarbons and geothermal energy from the same well site? (Such as the Texas House Bill 4433, Severance Tax Exemption.) -3-PDF Image | Texas Geothermal Assessment for the I35 Corridor East
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