ORS Chapter 523
Chapter 523 — GeothermalHeating Districts
2009 EDITION
GEOTHERMALHEATING DISTRICTS
MINERALRESOURCES
GENERALPROVISIONS
523.010 Definitions
CREATIONAND POWERS
523.015 Definitionsfor ORS 523.020
523.020 Cityas geothermal heating district
523.030 Formationof geothermal heating districts; disposal of surplus; exclusion from district
523.040 Powersof district; emergency power; applying for financing gifts and grants
523.050 Waterand real property transactions; right to obtain geothermal heat from othersources
523.060 Cooperativeagreements; bonds
523.070 Authorityto perform drainage work
OPERATION
523.110 Regulationson use of geothermal heat; effect of failure to comply
523.120 Depositor other security for use of heat
523.130 Rates;contracts with users
523.140 Rateincrease procedure
523.150 Terminationof service for nonpayment of heating charge
523.160 Refundof heating service extension costs by owner of adjacent property
ASSESSMENTS
523.210 Specialassessment for improvements; report; contents
523.220 Actionon special assessment report by board
523.230 Approvalof special assessment report; notice of improvement; contents
523.240 Meansof constructing improvement
523.250 Orderto carry out or abandon improvement after public hearing; assessment ordinance
523.260 Methodof assessment
523.270 Appealof assessment
523.280 Noticeof assessment to property owners; publication; contents
523.290 Entryof amount of assessment; lien; priority; foreclosure
523.310 Errorsin assessment
523.320 Deficitassessment; hearing; objections; notices
523.330 Excessassessment; credit; rebate
523.340 Abandonmentof improvement; cancellation of liens; refunds
523.350 Restrictionon rendering assessment invalid; correction by board
523.360 Reassessment
523.380 Foreclosureof assessment lien
TAXINGPOWER
523.410 Advalorem taxation; special tax; collection; enforcement; boundary changes
523.420 Disposalof taxes levied by invalid district
BONDS
523.460 Generalobligation bonds; limit; issuance; maturity; interest; election; pledge ofrevenue
523.470 Revenuebonds; terms; issuance
523.480 Refundingbonds
523.490 Issuanceof bonds
DISSOLUTION
523.510 Assumptionof debts and obligations of district upon dissolution
ADMINISTRATION
523.610 Board;election; authority; term; vacancy
523.625 Electionlaws applicable
523.630 Meetings;officers; quorum; employees; employee benefits
523.640 Specialelection
523.660 Districtfunds; deposit; records
523.670 Agreementsbetween district and annexed or joined city
523.680 Employees’retirement system; establishment; contents
523.690 Paymentsto retirement plan fund
523.700 Employeecontributions to retirement plan
523.710 Limiton eligible individuals in retirement plan
GENERALPROVISIONS
523.010Definitions.As used in this chapter unless the context requires otherwise:
(1)“Board” or “board of commissioners” means the governing body of a district.
(2)“By-product” means any mineral or minerals (exclusive of oil, hydrocarbon gas,helium or other hydrocarbon substances) which are found in solution or inassociation with geothermal resources and which have a value of less than 75percent of the value of the geothermal resources or are not, because ofquantity, quality, or technical difficulties in extraction and production, ofsufficient value to warrant extraction and production by themselves.
(3)“District” means a geothermal heating district formed under this chapter.
(4)“County” means the county in which the district, or the greater portion of thetaxable assessed value of the district, is located.
(5)“County board” means the county court or board of county commissioners of thecounty.
(6)“County clerk” means the county clerk of the county.
(7)“Geothermal heat” means heat derived from geothermal resources.
(8)“Geothermal resources” means the natural heat of the earth, the energy, inwhatever form, below the surface of the earth present in, resulting from, orcreated by, or which may be extracted from, the natural heat, and all mineralsin solution or other products obtained from naturally heated fluids, brines,associated gases, and steam, in whatever form, found below the surface of theearth, exclusive of oil, hydrocarbon gas, helium or other hydrocarbonsubstances, but including, specifically:
(a)All products of geothermal processes, embracing indigenous steam, hot water andhot brines;
(b)Steam and other gases, hot water and hot brines resulting from water, gas orother fluids artificially introduced into geothermal formations;
(c)Heat or other associated energy found in geothermal formation; and
(d)Any by-product derived from them.
(9)“Inhabitant” when used with respect to a district includes a business locatedwithin the district.
(10)“Owner” means the holder of the record title to real property or the vendeeunder a land sale contract, if there is such a contract. [1975 c.782 §1; 1983c.83 §98]
CREATIONAND POWERS
523.015Definitions for ORS 523.020. For the purposes of ORS 523.020 andthis section, notwithstanding ORS 523.610 to 523.670, “board,” as defined inORS 523.010, includes the governing body of a city. “District,” as defined inORS 523.010, includes an incorporated city. [1977 c.212 §1]
Note: 523.015 and523.020 were enacted into law by the Legislative Assembly but were not added toor made a part of ORS chapter 523 or any series therein by legislative action.See Preface to Oregon Revised Statutes for further explanation.
523.020City as geothermal heating district. (1) An incorporated city, whenempowered by its charter to do so, may provide geothermal heating services topersons within and without its boundaries in accordance with the provisions ofORS chapter 523, where not in conflict with ORS 523.015 and this section.
(2)The powers conferred by ORS chapter 523 and ORS 523.015 and this section are inaddition to the powers conferred by any other law and not in substitution forany right, power or privilege vested in a city. [1977 c.212 §2]
Note: See note under523.015.
523.030Formation of geothermal heating districts; disposal of surplus; exclusion fromdistrict.A geothermal heating district may be formed for the purpose of supplyinginhabitants of the district with geothermal heat as provided by this chapter.In connection with supplying geothermal heat, a district may supply, furnishand sell for any use any surplus geothermal heat over and above the heatingneeds of its inhabitants to persons outside the district, or to schooldistricts or other local governments as defined in ORS 174.116. All railroadrights of way or improvements thereon or rolling stock moving thereover shallbe excluded from districts organized under ORS 198.010, 198.180, 198.510,198.705, 199.420, 255.012, 366.321, 451.573 and this chapter and for purposes ofthis chapter shall not be considered as property within the boundaries of suchdistricts, unless the owner of the railroad property expressly consents to itsinclusion. [1975 c.782 §2; 2003 c.802 §128; 2007 c.179 §8]
523.040Powers of district; emergency power; applying for financing gifts and grants. (1) A districtformed under this chapter shall have the power to make contracts, hold andreceive and dispose of real and personal property within and without itsdescribed boundaries and do all other acts and things which may be requisite,necessary or convenient in carrying out the objects of the district orexercising the powers conferred upon it by this chapter, sue and be sued, pleadand be impleaded in all actions and suits or other proceedings brought by oragainst it.
(2)In an emergency or in order to meet peak demand a district may supply itsinhabitants with heat derived from an energy source other than from geothermalresources for purposes of supplementing the geothermal heat supplied by the district.
(3)In addition to any other power of a district, it may apply and qualify for andreceive any private or federal grants, loans or other funds available forcarrying out the objects of the district. [1975 c.782 §3]
523.050Water and real property transactions; right to obtain geothermal heat fromother sources.A geothermal heating district may purchase, sell and hold interests in waterand real property in carrying out the objects of the district. A district alsohas the right to purchase or obtain from cities or other geothermal heatingdistricts, geothermal heat, or an interest in geothermal heat, or an interestin a geothermal heat pipeline owned or operated by a city or other geothermalheating district, or to obtain jointly with a city or other geothermal heatingdistrict, any right, or to lay and own individually or jointly with any city orother geothermal heating district, any geothermal heat pipeline for thepurposes specified in ORS 523.030. [1975 c.782 §5; 2003 c.802 §129]
523.060Cooperative agreements; bonds. (1) Districts may enter intocooperative agreements with each other providing for the joint acquisition,construction, ownership, use or control of facilities for the collection,treatment, distribution or supply of geothermal heat.
(2)Each district may issue and sell general obligation, revenue or refundingbonds, subject to the limitations and procedures contained or referred to inthis chapter for the authorization, issuance or sale of such bonds, for thepurpose of paying its share of the cost of the acquisition or construction offacilities provided for in cooperative agreements authorized by this section. [1975c.782 §18]
523.070Authority to perform drainage work. Any district may perform drainage workfor the purpose of reclaiming real property located within the district,protecting real or personal property located within the district from theeffects of geothermal heating, promoting sanitation, providing for the publichealth, convenience and welfare or providing services of public utility orbenefit. The district may use all applicable powers granted to it by thischapter, including the rights and powers of eminent domain, in performing thedrainage work authorized by this section. [1975 c.782 §17]
OPERATION
523.110Regulations on use of geothermal heat; effect of failure to comply. Any districtmay adopt and promulgate regulations concerning the use of geothermal heat andthe property of the district. The board of commissioners may refuse to supplyany building, place or premises with geothermal heat where the user fails after10 days’ written notice to comply with the regulations. The written noticeshall be by registered mail or by certified mail with return receipt and shallbe deemed given when it is deposited in the United States Post Office properlyaddressed with postage prepaid. [1975 c.782 §11; 1991 c.249 §40]
523.120Deposit or other security for use of heat. Any district may require areasonable cash deposit or an irrevocable letter of credit to insure paymentfor the use or rent of geothermal heat to be furnished by the district. [1975c.782 §12; 1991 c.331 §75]
523.130Rates; contracts with users. A geothermal heating district shallcharge consumers for the geothermal heat furnished and fix and collect therates therefor. Rates charged may be fixed and classified according to the typeof use and according to the amount of geothermal heat used. Any contractentered into by a district with persons other than domestic users shall providefor immediate cancellation whenever no surplus supply of geothermal heat existsover and above any and all demands of domestic users. A district also maycontract with any person or may enter into an intergovernmental agreement underORS chapter 190 to supply, furnish and sell surplus geothermal heat on suchterms and conditions and at such rates as the board of commissioners considersadvisable. [1975 c.782 §13; 2003 c.802 §130]
523.140Rate increase procedure. (1) Whenever any increase is proposed in theexisting rates charged geothermal heat consumers by a district pursuant to ORS523.130, the board of commissioners shall first provide for a public hearing onsuch proposal before any increased rates are ordered into effect.
(2)The public hearing required under subsection (1) of this section shall be heldat a place designated by the board after notice thereof has been given byinclusion of a notice of the public hearing in the geothermal heating billssent to consumers by the district during the period of 30 days prior to thedate of the hearing. [1975 c.782 §14]
523.150Termination of service for nonpayment of heating charge. In case promptpayment of geothermal heating rent or charge is not made, a district may shutoff the geothermal heating supply to the building, place or premises to whichthe district supplied the geothermal heating. [1975 c.782 §15]
523.160Refund of heating service extension costs by owner of adjacent property. If any personis required by a district to pay the cost of extending a geothermal heatingpipeline adjacent to property other than the property of the person so thatgeothermal heating service is provided for such other property without furtherextension of the geothermal heating pipeline, the district shall require theowner of the other property, prior to providing geothermal heating service tothat property, to refund to the person required to pay the cost of extendingthe geothermal heating pipeline, a pro rata portion of the cost of theextension. The right to require such refund shall not continue for more than 10years after the date of installation of the extension of the geothermal heatingpipeline. The amount to be refunded shall be determined by the district andsuch determination shall be final. [1975 c.782 §16]
ASSESSMENTS
523.210Special assessment for improvements; report; contents. Whenever thedistrict board considers it necessary, upon its own motion, or upon thepetition of the owners of one-half of the property that benefits specially fromthe improvement, to make any improvement to be paid for in whole or in part byspecial assessment according to benefits, the board shall, by motion, cause asurvey and written report for such project to be made and filed with thesecretary. Unless the district board directs otherwise, the report shallcontain:
(1)A map or plat showing the general nature, location and extent of the proposedimprovement and the land to be assessed for the payment of any part of the costthereof.
(2)Plans, specifications and estimates of the work to be done; however, where theproposed project is to be carried out in cooperation with any othergovernmental agency, the district board may adopt the plans, specifications andestimates of such agency.
(3)An estimate of the probable cost of the improvement, including any legal,administrative and engineering costs attributable thereto.
(4)An estimate of the unit cost of the improvement to the specially benefitedproperties.