HAR §13-183-57. Drilling operations

(a) Upon commencement of drilling operations, the lessee shall mark each drilling site and each completed well site in a conspicuous place with the lessee's name or the name of the operator, the lease number, and the number of the well. The lessee shall take all necessary means and precautions to preserve these markings. (b) The lessee shall diligently take all necessary precautions to: (1) Keep all wells under control at all times; (2) Utilize trained and competent personnel; (3) Utilize properly maintained equipment and materials; and (4) Use operating practices which insure the safety of life and property. The selection of the types and weights of drilling fluids and provisions for controlling fluid temperatures, blowout preventers and other surface control equipment and materials, casing and cementing programs, etc., to be used shall be based on sound engineering principles and shall take into account apparent geothermal gradients, depths, and pressures of the various formations to be penetrated and other pertinent geologic and engineering data and information about the area. (c) When necessary or advisable, the chairperson shall require that adequate samples be taken and tests or surveys consistent with industry practices be made without cost to the State, to determine: (1) The identity and character of geologic formations; (2) The quantity and quality of geothermal resources; (3) Pressures, temperatures, rate of heat, and fluid flow; and (4) Whether or not operations are being conducted in the best interest of the public. [Eff. JUN 22 1981] (Auth: HRS §182-14) (Imp: HRS §182-14) §13-183-58 Waste prevention, offset wells and geothermal by-products. (a) All mining leases shall be subject to the condition that the lessee shall, in conducting exploratory development and producing operations, use all reasonable precautions to prevent waste and conserve and provide for optimum 32 use of geothermal resources and other natural resources found or developed in the leased lands. (b) If any waste of geothermal resources or by-products result from the willful misconduct or negligence of the operator or if the operator fails to take corrective action within a reasonable time after being notified in writing by the chairperson, the board shall determine the value of the loss or waste and the compensation due to the board, using the method for computing royalties set out in