(a) Purpose and scope.
  (1) It is the intent of this section to set minimum standards of conduct for lessees on state properties leased or permitted under this subchapter with respect to exploration and development operations for resources associated with geothermal energy that are not regulated by the RRC, Texas Natural Resources Conservation Commission, the United States Environmental Protection Agency, their successor agencies, or other appropriate authorities.
    (A) The GLO may include specific and express restrictions and standards concerning exploration and development in each lease and in each plan of operations it approves;
    (B) If the minimum standards of conduct in this section conflict with express provisions in a lease form or in an approved plan of operations, then the express provisions will control; and
    (C) The commissioner may grant, in accordance with the law, written exceptions to the minimum standards and procedural rules found in this section if the commissioner makes a written determination that such exceptions are in the best interests of the PSF.
  (2) This section shall not apply to leases executed prior to the date of acceptance of these rules unless the lease specifically requires a plan of operations. Holders of active permits shall be required to comply with the provisions of this section regardless of the date of issue.
  (3) Operations for geothermal energy are regulated by the RRC. However, as a mineral owner, the GLO may need information that is not required by or submitted to the RRC. Consequently, the GLO reserves the right to request additional information on operations for the exploration and development of geothermal energy and related resources. If additional information is needed, the GLO will notify the lessee or permittee in writing.
  (4) This section references statutes and the rules and regulations of regulatory agencies that govern mineral development on state lands. By such references the SLB does not intend to usurp authority or substitute its judgment for that of the other agencies. These references are included to put permittees and lessees on notice that state lands are not exempt from such regulation, including all relevant environmental safeguards.
  (5) If any provision of this section conflicts with state or federal statutes, regulations, or rules of the RRC, Texas Natural Resources Conservation Commission, or the United States Environmental Protection Agency, their successor agencies, or other appropriate authorities, then such other statutes, regulations, or rules shall control.
(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
  (1) Lease--A mining lease issued under §155.42 of this title (relating to Mining Leases on Properties Subject to Prospect), §155.43 of this title (relating to Exploration and Mining Leases for Minerals Subject to Sealed Bid), or §155.44 of this title (relating to Mining Leases on Relinquishment Act Lands).
  (2) Lessee--The initial holder of a valid lease or a successor, assignee, devisee, or heir who acquires any right of the initial holder.
  (3) Operations--Any activities other than reconnaissance activities, associated with mineral exploration or development that require substantially disturbing or destroying the surface or subsurface of the leased or permitted areas. Operations shall include drilling test holes or core holes; excavating test pits; moving heavy machinery over the leased or permitted area; sinking shafts; and extracting, storing, processing, and shipping minerals.
  (4) Operator--A permittee or lessee or any employee, agent, servant, contractor, or subcontractor of either a permittee or lessee.
  (5) Permit--A prospect permit issued by the commissioner under §155.41 of this title (relating to Prospect Permits on State Fee Lands).
  (6) Permittee--The initial holder of a valid prospect permit or a successor, assignee, devisee, or heir who acquires any right of a permittee.
  (7) Premises--Any state property subject to a lease or to a permit.
  (8) Reconnaissance activities--Hand sampling, geologic mapping, surveying, and other activities which do not significantly impact the surface and which are necessary to gather data to formulate the plan of operations.
  (9) TPWD lands--(As used in this section only) premises whose surface is owned or leased by TPWD or is subject to a conservation easement in favor of TPWD.
(c) Overview of exploration and mining procedures.
  (1) Reconnaissance activities. After a permit or lease has been granted for exploration and development of the premises, an operator may begin reconnaissance activities. The permits or leases may contain rules and restrictions on reconnaissance activities. In conducting reconnaissance activities on state premises, an operator shall also comply with the rules found in subsection (f) of this section. In conducting reconnaissance activities on TPWD lands, an operator shall comply with additional rules found in subsection (g) of this section.
  (2) Operations.
    (A) Before an operator may commence operations on any premises, the permittee or lessee of those premises must submit an initial plan of operations to the GLO. Information required to be included in an initial plan will be controlled by the type of state property involved. If operations extend over several state properties, permittee or lessee may submit one unified plan of operations. No operations may commence until such a plan of operations has been filed with the GLO in accordance with subsection (d) of this section and approved by the GLO in accordance with subsection (e) of this section.
    (B) The initial plan of operations shall include all reasonably foreseeable exploration, extraction, mining, and processing activities. Whenever the permittee or lessee wishes to undertake activities beyond the scope of the initial plan of operations, a supplemental plan must be filed with the GLO. Whenever the permittee or lessee wishes to change any activity found in an approved plan, an amended plan must be filed with the GLO. An amended or supplemental plan of operation shall have the same requirements and be subject to the same approval process as the initial plan.
    (C) Operations must be conducted in accordance with an approved plan of operations and also with the rules found in subsection (f) of this section.
    (D) Failure to submit a plan before conducting operations, to submit a supplemental or amended plan before conducting additional or different operations, or to conduct operations on the premises in compliance with the approved plan of operations or these rules shall subject the permit or lease to forfeiture.
(d) Content of plan of operations.
  (1) For state property permitted or leased under this chapter, the plan of operations must include the following:
    (A) The name and legal mailing address of the permittee or lessee and of any operators who will be on the premises;
    (B) A 7 1/2 minute USGS topographic map showing:
      (i) Information sufficient to locate the proposed areas of operations on the ground;
      (ii) Existing and/or proposed roads or access routes to be used in connection with the operations; and
      (iii) The approximate location and size of any other areas where surface resources or improvements might be disturbed;
    (C) Information sufficient to describe or identify:
      (i) The precise nature and extent of all proposed operations including all prospecting/exploration activities and all mining/processing activities; and
      (ii) The period during which each proposed activity will take place;
    (D) If the permittee or lessee proposes to commingle minerals produced under the permit or lease with privately-owned minerals or with other state-owned minerals:
      (i) A specification of the proposed manner of commingling; and
      (ii) A comparison of the quality of the geothermal energy and related resources produced under the lease or permit to the quality of the geothermal energy and related resources with which it will be commingled;
    (E) If subsurface excavation is planned, a statement of what possible effect such excavations could have on water, as defined by Texas Civil Statutes, Article 8866, §1(11) (Vernon, 1989).
  (2) For state property permitted or leased under this subchapter, except property leased under §155.44 of this title (relating to Mining Leases on Relinquishment Act Lands), the plan of operations must also include the following:
    (A) Type, design, and location of existing and proposed roads or access routes;
    (B) Transportation equipment and other heavy equipment to be used on the premises;
Cont'd...