HomeMy WebLinkAboutCOM 0092.012 2014-2016Law Offices of Yeh & Moore
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35 W'. Lanikaulo Street Hilo. Hma... 967'_0-1199
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February 2, 2015
Hawaii County Council
c/o Office of the County Clerk
25 Aupuni Street
Hilo, Hawaii 96720 "
Re: Proposed Resolutions Nos. 58-15 and 59-15
Puna Geothermal Venture Drilling Operations
Dear Hawaii County Council Members:
Thank you for the opportunity to present comment on the above -referenced resolutions.
The resolutions request Puna Geothermal Venture ("PGV") to honor the terms Ordinance No.
12-151 and request the Corporation Counsel to initiate a declaratory judgment action to
determine the applicability of the ordinance to PGV's drilling operations under Geothermal
Resource Permit No. 2 ("GRP2") and/or to seek injunctive relief.
Ordinance No. 12-151 was enacted on December 5, 2012, and provides in part that
"[g]eothermal resources exploration drilling and geothermal production drilling operations being
conducted one mile or less from a residence, shall be restricted to the operating hours of
7:00 a.m. - 7:00 p.m."
The proposed resolution mistakenly asserts that a legitimate argument can be made in
support of the applicability of Ordinance 12-151 to PGV's current proposed drilling of a
production well ("Well KS -16") based in part upon Hawaii Administrative Rule ("HAR'-), Title
11, Chapter 46, Section 13, relating to Community Noise Control, promulgated by the State
Department of Health ("DOH"). On its face, Ordinance No. 12-151 docs not even purport to
regulate noise, but interferes with PGV's rights under its existing permits.
The resolution also wrongly asserts that Ordinance No 12-151 does not remove any
specific right PGV may have acquired under Geothermal Resource Permit No. 2 ('GRP2" ).
As will be more fully addressed herein, the assumptions and conclusions of the resolution
are incorrect, and the subject ordinance is over broad and unenforceable. Reference in
Resolution No. 59-15 to the authority of the County to adopt noise standards is misplaced.
Unlike the Council, the agencies with the authority and expertise to regulate drilling operations
Comm. Wo. 2. /L
Ref. To:
Ref. Date . 4 20I�
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Page 2
as well as noise, have not attempted to regulate night time drilling for safety and engineering
reasons.
PGV not only complies with applicable standards of the Department of Health, but also
complies with stricter standards contained in the conditions of the GRP which authorize it to
conduct geothermal well and drilling activities.
Background
Safety Issues
Ordinance No. 12-151 and the proposed resolutions reflect a basic lack of
understanding about well drilling operations and geothermal well dynamics. For these and other
reasons, PGV has not been willing to comply with an ordinance that generates safety concerns, is
over broad, and impossible to comply with.
Enclosed herewith for the Council's review are the following informational
documents relevant to the issues:
Exhibit "A" County of Hawai9 Planning Commission letter dated February 6,
2001 approving Puna Geothermal Venture's request for an
amendment to GRP2;
Exhibit `B" State of I-lawai'1 Department of Land and Natural Resources letter
approving Puna Geothermal Venture's application for a permit to
drill a geothermal well in Kapoho dated May 31, 2011:
Exhibit "C" 'testimony from by Hank Banquet, Member of the Big Island
Energy Advisory Commission, regarding Bill 292, Draft 1, dated
September 30, 2012;
Exhibit "D" State of Hawai`f Department of Business, Economic Development
& Tourism Testimony regarding Bill 292 dated October 12, 2012;
Exhibit "E" GeothermEx Memo regarding the potential effects of restrictions
on night-time drilling of geothermal wells dated October 12, 2012;
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Exhibit "F" Testimony from Innovations Development Group and Indigenous
Consulting regarding safety protocols and industry standards as it
relates to Bill 292, dated October 17, 2012;
Exhibit "G" Geothermex Memo regarding the safety aspects of restrictions on
night-time drilling of geothermal wells dated October 31, 2012:
Exhibit "H" Geothermal Energy Association's statement in opposition to Bill
292 dated November 5, 2012;
Exhibit "I" Geothermal Resources Council statement in opposition to Bill 292
dated November 6, 2012;
Exhibit "J" Hawai`I Island Economic Development Board testimony in
opposition to Bill 292 dated November 8, 2012;
Exhibit "K" State of Hawai`I Department of Land and Natural Resources
testimony in opposition to Bill 292, dated November 8, 2012;
Exhibit "L" County of l-lawaii Planning Department letter regarding Ordinance
12-151 (Bill 292) as it applies to Puna Geothermal Venture's
Geothermal Resource Permit (GRP2) dated May 31, 2013; and
Exhibit "M" Geothermal Well Permit for Kapoho State 16 (KS -16), dated
December 16, 2014.
Ordinance 12-151 was enacted in 2012 over the objection of, among others,
geothermal experts, the State Department of Land & Natural Resources ("DLNR"), the State
Department of Business, Economic Development & Tourism, and the Hawaii Island Economic
Development Board. Corporation Counsel advised former Council members that the ordinance
was not enforceable as against PGV.
DLNR, which authorizes PGV's well drilling permit, recognizes the risks of
groundwater contamination and blow outs, and strongly advises against any restrictions on night
time drilling, stating that "fr]epeated interruption of drilling operations for extended period of
time is unprecedented in the industry and could lead to unintended consequences".
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In a memorandum to DLNR dated October 31, 2012, the Chief Engineer of
GeothermEx, an international geothermal consulting company, noted the following:
Fundamentally, shuttino down drilline onerations at night
would cause repeated interrnotions in the circulation of
drilline fluids, and it would extend the period of time in
which the wellbore is exposed to drilling fluids without
havine casing installed. 'I here are three consequences of
this that could create adverse conditions for safety: (1)
thermal cycling of the well casing; (2) a build-up of gas
pressures in the wellhead; and (3) loss of integrity of the
wellbore wall.
In short, compliance with the ordinance would create substantial safety risks,
triple drilling time and not accomplish the intended goals of public safety. A restriction on 24-
hour geothermal exploratory well drilling is unprecedented throughout the world. As to safety, in
testimony on Ordinance 12-151 provided by Innovations Development Group & Indigenous
Consultants LLC, Dr. Sadiq J. Zarrouk, Engineer and Professor at Auckland University, was
cited as stating:
There is very high risk of well blowout if drilling a deep
geothermal well on daily shifts (7:00 am to 7:00 pm).
When drilling stops, the well will heat up and can start
flowing or kicking. To control the well the drilling
engineers need to be able to pump water and/or heavy mud
down the well to fill and cool the well down and to counter
the pressure. The drilling engineers will not be able to do
that if operating on 12 hours shift while having all1most of
their machinery shutdown especially during the night.
There is also higher risk of the build-up ofgases inside the
well during shut down, which may have to be removed in a
controlled way to secure the well. Running and cementing
the steel casing of the well can take more than 12 hours and
the drilling engineers cannot stop once they start as the
cement will set and we might end up with a poor cementing
job, which is critical to the integrity of the well. Drilling 12
hours a day only will significantly increase the risk of well
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collapse during drilling, which can prevent running the
proper casings, causing the well to go out of control.
These blowouts cause major damage and potential loss of
life. I have not seen a case of high temperature geothermal
well drilled this way and I strongly object to such practice.
I can email you a movie of one documented case of
geothermal well blowout from New Zealand that kept going
for 13 years. The experience from this well helped set the
standards for geothermal well drilling worldwide.
Thus, one cannot shut down all "drilling operations" which must occur even if
drilling stops at night without creating serious safety risks.
2. GRP2 Contains Stricter Noise Standards Than DOH Rules, and Was Issued
By the Agency With Authority to Regulate Geothermal Drilling Operations
PGV was issued a Geothermal Resource Permit ("GRP2") by the Planning
Commission in 1989, pursuant to the Commission's authority under FIRS Section 205-5.1.'
GRP2 was subsequently amended in 2001 to allow an increase of generation of electrical power
by PGV through geothermal resources up to 60 MW of electrical capacity. GRP2 and its
amendment were issued pursuant to Rule 12 of the County of Hawaii Planning Commission's
Rules of Practice and Procedure, and the authority granted to the Planning Commission under
Chapter 205, HRS, to issue such permits and establish operating conditions. GRP2 specifically
conditioned the permit on, among other conditions, noise monitoring and abatement
requirements during day and nighttime hours. The permit clearly contemplated night time
' HRS Section 205-5.19(c) provides in pate
The use of an area for geothermal development activities within a geothermal resource subzone
shall be governed by the board [of Land & Natural Resources] within the conservation district
and, except as herein provided, by state and county statutes, ordinances, and rules not
inconsistent herewith within the agricultural, rural and urban districts.... In the absence of
provisions in the county general plan and zoning ordinances specifically relating to the use and
location of geothermal development activities in an agricultural, rural or urban district, the
appropriate county authority may issue a geothermal resource permit to allow geothermal
development activities. "Appropriate county authority" means the county planning commission
unless some other agency or body is designated by ordinance of the county council.
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activities, including drilling, at the PGV plant. In the 2001 amendment, the Planning
Commission notes:
In the original Geothermal Resource Permit, the permittee
agreed "not to exceed a general noise level of 55 dBA
during the daytime [7am to 7pm] and 45 dBA at night [7pm
to 7am] measured at the nearest residence." This general
noise level could be exceeded by up to 10 dBA, but not for
more than 10% of the time within any 20 minute period.
There was also an exception for periods of venting and
drilling. These standards applied only until noise
regulations were adopted by the State or County. Because
the DOH [Department of Health] adopted regulations in
1996, those now apply, and the permittee is allowed to emit
up to 70 dBA, 24 hours per day. This is unreasonably loud
and the Planning Commission believes that nearby
residents are justified in seeking a stricter standard. It is
also understandable that they did not expect that noise
standards would be so drastically relaxed, after the
permittee made representations that the noise levels would
not exceed 55/45 dBA.
Based on these findings, the Planning Commission imposed the following
condition on the GRP (amended Condition No. 22):
During power plant and welltield operations, the permittee
shall not exceed a general noise level of 55 dBA during
daytime and 45 dBA at night at the current nearest
residence. For the purposes of these guidelines, `night" is
defined as the hours between 7:00 p.m, and 7:00 a.m.
Under rules promulgated by the DOH in 1996 (Hawaii Administrative Rules
("I-IAR") Title 11, Chapter 46), permissible noise levels are categorized under three land use
designations: Class A for lands zoned residential, conservation, preservation, public space, open
space or similar type; Class B for lands zoned for multi -family dwellings, apartment, business,
commercial, hotel, resort, or similar type; and Class C for lands zoned agriculture, country,
industrial, or similar type. PGV's facilities are located within the agricultural zone and as such
subject to noise levels set for Class C lands. The maximum permissible noise levels for lands
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within Class C are "Daytime (7 a.m. to 10 p.m.) 70 dBA" and "Nighttime (10 p.m, to 7 a.m.) 70
dBA. The conditions of the GRP issued to PGV set maximum noise levels well below
permissible DOH levels.
In promulgating its rules, the DOH adopted the following rule on the authority of
HRS Sections 342F-20 and 46-17.- HAR Section 1 1-46-13 provides:
Other ordinances and rules. The council of any county may
adopt and provide for the enforcement of ordinances
regulating any matter relating to excessive noise. No such
ordinances shall be held invalid on the ground that it covers
any subject or matter embraced within any statute or rule of
the State; provided that in any case of conflict between the
statute or rule and ordinance, the law which affords the
most protection to the public shall apply.
HRS Section 34217-20, enacted in 1989, provides:
Effect of laws, ordinances, and rules. (a) All laws,
ordinances, and rules inconsistent with this chapter shall be
void and of no effect.
(b) Any county may adopt ordinances and rules governing
any matter relating to excessive noise' control which is not
governed by a rule of the department adopted pursuant to
this chapter; provided that any county ordinance or rule
relating to excessive noise control shall be void and of no
effect as to any matter regulated by a rule of the department
upon the adoption thereof.
` The rule also cites as authority for its adoption HRS Sections 34217-3 and 34217-31,
which confer on the Director of DOH general rule making authority.
' "Excessive noise" is defined in 342F-1 as "the presence of sound as measured by
standard testing devices as established by the noise rules adopted by the department of a volume
or in quantities and for durations which endangers human health, welfare or safety, animal life, or
property or which unreasonably interferes with the comfortable enjoyment of life and property in
the State or in such areas of the State as are affected thereby.
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HRS Section 46-17, enacted in 1974, and amended in 1994 and 1999, provides:
Regulation of certain public nuisances. Any provision of
law to the contrary notwithstanding, the council of any
county may adopt and provide for the enforcement of
ordinances regulating or prohibiting noise, smoke, dust,
vibration, or odors which constitute a public nuisance. No
such ordinance shall be held invalid on the ground that it
covers any subject or matter embraced within any statute or
rule of the State; provided that in any case of conflict
between a statute or rule and an ordinance, the affording the
most protection to the public shall apply, with the exception
that:... .
(2) An ordinance shall not be effective to the extent that it
is inconsistent with any noise rule adopted by the
department of health under authority of Chapter 342P
While the resolution is based on an asserted right of the County to adopt stricter
noise standards, the basic flaws of this reasoning is that the ordinance does not mention noise at
all, and would otherwise be inconsistent with both DOH noise rules as well as GRP2.
Leen/ Issues
Tire Counci/ Had No Jurisdiction to Amend tine Conditions of GRP2 or Its
Drilling Permit From DLNR
Contrary to the assumption of the resolution, Ordinance No. 12-151 does purport
to restrict and amend the operating conditions of GRP2. The legislature delegated the authority
to issue geothermal resource permits to the Planning Commission, not to the Council, and the
attempts by the Council to amend the permit conditions by way of the ordinance are void by the
doctrine of preemption, both as to the GRP, and by reason of HRS Section 46-17(2).
Pursuant to its authority, the Commission duly issued GRP2 to PCV with certain
express conditions, including conditions requiring the monitoring of noise levels and setting
maximum permissive noise levels for both day and night operations. The Planning Commission's
decision on GRP2 established clear and specific standards and approvals for drilling and normal
operations for PGV during day and evening hours. These standards were established as a result
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of considered and detailed discussions and information gathering, which included a review of
applicable DOH noise standards and input from the community and the Planning Department
(Christopher Yuen was then Planning Director), public testimony and several mediation sessions.
As a result of these efforts, GRP2 developed a workable set of conditions which considered
community concerns, and balanced them against the operational realities of providing firm
renewable power to the public. Since then, PGV has remained in compliance with the applicable
standards established in the GRP as well as by DOH. It hired a noise consultant after GRP2 was
issued, consulted with the Planning Department, and will continue to consider methods to reduce
noise emissions.
In conjunction with the rights PGV has under GRP2, PGV has also been issued a
mining lease and plan of operations by the Board of Land and Natural Resources (`BLNR") for
the well fields. Drilling permits for individual wells are subsequently issued on an administrative
basis by the Chairman of DLNR. A drilling permit is not required from DOM for each new well,
rather, a noise variance can be requested by PGV if applicable noise standards may be exceeded.
Such standards were not exceeded during the recent drilling of the KS -15 well. PGV has opted
to not seek a variance from such noise standards because its drilling operations are expected to be
well within both the DOH and GRP2 noise standards.
2. PGV Has Vested Rights under GRP2
GRP2 constitutes the final discretionary permit which provides development
entitlements of up to 60 MW at the current plant site. As you may have been advised, the
ordinance does not affect these entitlements. While PGV obtains drilling permits for specific
wells from DLNR, these permits are considered to be administrative or ministerial permits which
do not affect PGV's entitlements or "vested rights" flowing from GRP2 (DLNR does not limit
drilling to daylight hours because to do so is not consistent with safety concerns).
As a more common hypothetical, for example, if a developer were to obtain an
SMA permit to develop a shopping center and restaurant complex, it is the SMA which
constitutes the final discretionary permit, and subsequent plan approval and building permit
approval are considered to be ministerial permits. Were the Council to prohibit evening
operations for such a complex after it is developed and contractual agreements entered into in
reliance on these rights, such a prohibition would also violate due process, constitute a "taking"
and subject the County to a claim for damages. County ofKauai v. Pacific Standard Life
Insurance, Co., 65 Hawaii 318, 653 P.2d 766 (1982).
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When the Council adopted the ordinance, the stated intention of the Council,
based upon a clear record of same, was that based on the advice of Corporation Counsel as to
such vested rights, retroactive application of the ordinance to PGV's vested rights to conduct
drilling operations was not intended (nor does the language of the ordinance provide for
retrospective effect to operators with existing permits). Based on this understanding, the Council
voted to adopt same.
Subsequent to the adoption of Ordinance No. 12-151, PGV also obtained
confirmation from the Planning Director on may 13, 2013, that PGV was not prohibited from
night time drilling.
In reliance on its permits and the Planning Department's confirmation, PGV has
incurred substantial sums towards the drilling of KS -16, and entered into binding contracts for
same. Any delays or costs associated with a lawsuit would carry serious liability implications for
the County. The economic impact of a regulation and the extent to which it interferes with a
landowners reasonable investment backed expectations can constitute a regulatory taking and
requiring just compensation under the Fifth amendment of the Constitution. Lingle v. Chevron
USA., Inc., 544 U.S. 528 (2005).
3. Ordinance No. 12-151 is Preempted by State Law
The County's authority to enact Ordinance No. 12-151 is preempted under State
law, which grants the Planning Commission, DLNR and DOH the authority to regulate PGV's
operations. I IRS Section 46-1.5 (13) provides an express limitation upon the County's powers,
as follows:
"[e]ach county shall have the power to enact ordinances
deemed necessary to protect health, life, and property, and
to preserve the order and security of the county and its
inhabitants, on any subject matter not inconsistent with or
tending to defeat, the intent of any state statute, where the
statute does not disclose an express or implied intent that
the statute shall be exclusive or uniform throughout the
State."
Under State law, the Planning Commission and not the Council had the authority
to issue GRP2 to PGV and to set conditions of operation. DOH and DLNR have the authority
under state law to issue drilling and noise permits, and to regulate hours of these activities as well
Law Offices of Yeh & Moore
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as to set noise standards. Ordinance No. 12-151 is preempted by the statutes authorizing DLNR
and DOIIto issue drilling permits and allow operations during nighttime hours. 'these agencies
also have the right to enforce permit conditions, but PGV has been operating in compliance with
such conditions, which are based on long established and accepted health standards.
4. Ordinance No. 12-151 Does Not Have Retrospective EffectAnd the Council
Did Not Intend Bill 292 to Cover PGV's Drilling Operations
Ordinance No. 12-151 contains no express provision for its retrospective
operation and nothing in the legislative history indicates that it should be applied retroactively.
Consequently, it may only operate prospectively. HRS § 1-3 ("No law has any retrospective
operation, unless otherwise expressed or obviously intended"); see also Life of the Land. Inc. v.
City Council of City and Cnty. of Honolulu, 606 P.2d 866, 900-01, 61 Haw. 390, 449-50 (1980).
This well-established principle is particularly applicable in the case of PGV's vested drilling
rights acquired under existing law. See Dash v. Wayne, 700 F.Supp. 1056, 1059 (D. Haw.,
1988), citing Clark v. Cassidy, 64 Hawaii 74, 636 P.2d 1344 (1981).
Resort to the Bill's history to understand its true meaning and intent is justified.
The same rules of construction apply to municipal ordinances as for statutes. Thus, in construing
statutes, the foremost obligation is to:
ascertain and give effect to the intention of the legislature,
which is to be obtained primarily from the language
contained in the statute itself. And we must read statutory
language in the context of the entire statute and construe it
in a manner consistent with its purpose. When there is
doubt, doubleness of meaning, or indistinctiveness or
uncertainty of an expression used in a statute, an ambiguity
exists ...
In re Water Use Permit Applications, 93 P.3d 643, 651, 105 Haw. I (Hawaii, 2004). See also
HRS § I-15(2), "[t]he reason and spirit of the law, and the cause which induced the legislature to
enact it, may be considered to discover its true meaning", and HRS §1-15(3), "[e]very
construction which leads to an absurdity shall be rejected.' ; see also Foster Village Comm, Assn
v. Hess, 667 P.2d 850, 854, 4 Haw.App. 463, 469 (1983) (if there is manifest legislative intent to
the contrary of the natural and most obvious import of the statutory language, legislative history
may be considered). In fact, legislative history is frequently resorted to and is oftentimes the
decisive factor. Life of the Land, supra, 606 P.2d at 899, 61 Haw. at 447.
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Ambiguities also include applicability of the ordinance to PGV or others with
existing permits, the meaning of terms such as geothermal drilling operations, and what concerns
or activities the ordinance was intended to address or cover. In construing an ambiguous statute,
"courts may resort to extrinsic aids in determining legislative intent. One avenue is the use of
legislative history as an interpretive tool." In re Water Use, supra. Although Hawaii courts
often use committee reports as extrinsic aids to discern legislative intent, they have also used, in
the case of ordinances enacted by a city or county council: transcripts of committee proceedings,
discussions of resolutions to be enacted at council meetings, and discussions at public hearings
held on a proposed Ordinances. Life of the Land, supra, 606 P.2d at 889-900, 61 Haw. at 447-
450. In this case, any doubt as to the intent of the ordinance is removed by a review of the record
of proceedings, where even those Council members who voted for Bill 292 indicated their
understanding that the bill was not intended to cover drilling by PGV in accordance with its
permits.
Finally, where the statutory terms used - "drilling operations"- are not defined,
what might appear to be "plain" here may not be necessarily so. Where the express language of a
statute appears unambiguous, "a court must look beyond that plain language where a literal
interpretation of this language would thwart the purpose of the overall statutory scheme, would
lead to an absurd result, or would otherwise produce a result demonstrably at odds with the
intentions of the drafters." Amonette v. Lndymac Bank, F.S.B., 515 F.Supp.2d 1176, 1181 (D.
Haw., 2007) (citations and quotations omitted) (the court must look past the terms of the statute
and examine the entire law, including its object and policy, to ascertain the intent of the
legislature, with regard to the particular dispute in the case.)
The Administrative Rale Relied Upon Is ContrarE to ExitainL Law
HAR Section 11-46-13, which is relied upon to support the proposed resolution, is
contrary to existing law. HRS 46-17, which is cited as an authority for the adoption of this rule,
has been amended to specifically state that an ordinance shall not be effective to the extent it is
inconsistent with any noise rule adopted by DOH under the authority of Chapter 342F. The DOI I
has adopted maximum noise levels under its rules for night time and day time operations.
Additionally, 342F-20, again cited as an authority for the rule, states that ordinances inconsistent
with 342F shall be void and of no effect.
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Ordinance No. 12-151 is Over Broad and Unenforceable
The ordinance is over broad and unenforceable. The subject ordinance provides
that "geothermal drilling operations being conducted one mile or less from a residence, shall be
restricted to the operating hours of 7:00a.m.-7:00 p.m." The ordinance reflects a lack of
understanding of geothermal drilling operations, even when actual drilling does not occur. The
bill does not accomplish the purpose which it was supposedly intended to achieve, being the
prevention of night time noise. Drilling operations cannot simply cease when the act of drilling
ceases. In order to maintain safety and well integrity, hydraulic pumps need to operate, and other
equipment and operations must operate by necessity, based on well permit and safety
requirements.
The Council is Barred from Prohibiting Night Drilling by the Doctrine of
Equitable Estoppel
PGV has relied in good faith on the existing GRP2's terms and conditions,
including those pertaining to well drilling. It has expended a substantial amount of time, labor
and funding in reliance upon the permit, and upon assurances from the County of Ilawaii
Planning Director that Ordinance No. 12-151 is not applicable to its night time operations. The
Council cannot now impose new restrictions on its operations inconsistent with what is legally
permitted under GRP2. Life ofthe Land v. City Council, 60 Hawaii 446, 592 P.2d 26 (1979).
Filing a lawsuit will result in substantial cost and expense to the taxpayers, would
be frivolous, result in the payment of damages ca -sed by any unnecessary delays or costs. and is
unnecessary. PGV is taking steps to minimize noise from its drilling operations by siting, and by
best available control technology, in a manner that will be consistent with noise standards which
DOH and the Planning Commission has adopted. The drilling restrictions contained in
Ordinance No. 12-151 create issues of public safety and do not reflect the realities of well
engineering. We respectfully request that the subject resolutions be withdrawn or not be adopted.
Very truly yours,
LAW OFFICES OF YEH & MOORE
A----
THOMAS
--1
THOMAS L. H. YEH
Encls.
cc: Puna Geothermal Venture
TLHY\db
Harty Kim
Mryw
CERTIFIED MAIL
7000 0600 0024 2904 6488
FEB 0 S 2001
Mr. Barry T. Mizuno
Puna Geothermal Venture
P.O. Box 30
Pahoa, HI 96778
Dear Mr. Mizuno:
County of Hawaii
PLANNING COMMISSION
25 Aupuni Si=t Mom 109 • Hilo. Hawaii 967204252
tics)9614288 • Fas(908)961-6742
Geothermal Resource Permit (GRP 2)
Applicant: Puna Geothermal Venture
Request: Amendment to Permit
Tax Map Key 1-4-1 onion 2 3 gortio 19 and 58
*QQ` bW
The Planning Corrunission at its duly held public hearing o January 19, 200, ted to approve
the request for an amendment to Geothermal Resource Permit No ) to allow an
increase of generation of electrical power up to 60 MW of electrical capacity, and amendments
to related conditions. The property is located on the eastern portion of the Kilauea East Rift
Zone, Kapoho Section of the Geothermal Resource Subzone. The project site is located near the
junction of the Pahoa-Kapoho and Pahoa-Pohoiki Roads, and adjacent to (nor(h) Lanipuna
Gardens Subdivision, Kapoho, Puna, Hawaii.
Approval of this request is based on the following:
Puna Geothermal Venture (PGV) is requesting the amendment to the permit to
develop and operate a 60 MW geothermal power project consisting of multiple power
generating units, up to 30 geothermal wells drilled within the subject property, brine and
steam pipelines, pollution control equipment, steam separators, production and injection
wells, related wellfreld equipment, holding ponds, switch yards, office buildings,
workshops, control buildings, access roads, and auxiliary facilities such as air
compressors, and fire protection equipment, all in a manner consistent with applicable
pn� UVIII FEB -
EXHIBIT "A"
Mr. Barry T. Mizuno
Page 2
regulatory standards and permits utilizing new technology and equipment upgrades,
PGV is also requesting the amendments to incorporate regulatory standards and permit
requirements that have been promulgated and issued since the permit was originally
approved. When GRP No. 2 was approved in 1989, the Island of Hawaii consumed a
peak of 130 MW of electrical energy. Consumption since then has steadily increased to a
peak of 170 MW in 1999, With the anticipated growth of the Island population, it is
expected that the peak requirement will increase approximately 3-4 MW each year.
On October 3, 1989, the Planning Commission approved GRP No. 2 (87-1) for
the Puna Geothermal Venture Project, described as generating 25 MW of electrical
energy from geothermal fluids produced from the Puna Geothermal field. The project
consisted of the following:
• ten (10) integrated back -pressure steam turbines and air-cooled binary cycle
turbine power generating modules;
• up to 30 geothermal wells drilled from six (6) wellpads;
• brine and steam pipelines;
• pollution control equipment;
• a brine surge tank and holding pond;
• a switchyard;
• an office, warehouse, workshop, and control buildings
• access roads; and
• auxiliary facilities such as air compressors and fire protection equipment
The project was approved subject to 50 conditions (the permit indicates 51; however, due
to a numbering error, there are actually 50 conditions). The applicant is requesting that
21 of the 50 conditions be amended. The primary reason for the amendments is to
incorporate regulatory standards and permit requirements that have been promulgated and
issued since the permit was originally approved in 1989. Of the 21 amendments
requested, the majority (12) are necessary to incorporate current regulatory standards
(Condition Nos. 6, 7, 10, 16-19, 21-24, and part of 39), three pertain to the Geothermal
Asset Fund (Condition Nos. 29, 40 and 51), one is proposed to be deleted because the
condition is no longer relevant (Condition No. 13), and five relate to proposed uses
(Condition Nos. I, 4, 15, 17, 48 and 49). However, the Planning Commission
recommends that Condition Nos. 29, portion of 39, 40 and 51 pertaining to the
Mr. Barry T. Mizuno
Page 3
Geothermal Asset Fund be retained as stated in the permit. The Planning Commission
also recommends that Condition Nos. 48 and 49 pertaining to Final Plan Approval and
corrunence construction be retained but clarified to reflect the requested amendment.
In accordance with Section 205-5.1(e), Hawaii Revised Statutes, and Section 12-6
of the Planning Commission Rule 12, the approval of the amendments is based upon the
following findings_
The proposed geothermal development activities would not have unreasonable
adverse health, environmental, or socio-economic effects on residents or surrounding
properties. PGV has been in operation since 1989, and occupies approximately 25 acres
within a 500 -acre project area located in the Kapoho Section of the Kilauea Lower Fast
Rift Geothermal Resource Subzone. Each drill site is engineered to support the drilling
equipment to keep drilling effluent contained on site, separate from any natural drainage.
Each well pad has drilling mud pits, and sumps with sloped walls arc used to temporarily
store drilling wastes. The high porosity of the volcanic soils and rock in the site area
results in rapid downward percolation of rainwater. Concrete pads and berms contain
possible spills in areas where chemicals are handled. Catch basins, culverts, ditches, and
berms are provided for drainage control. There are no surface streams or ponds in the
vicinity of the drill sites, and groundwater is protected by cementing casing into the hole
to depths below sea level.
The project provides a dependable source of electricity and reduces Hawaii's
dependency on imported fuel for greater energy self-sufficiency. PGV has been a reliable
source of alternative energy since 1989, and also provides employment opportunities for
residents, leading to positive personal income and public revenues.
The applicant has taken measures to protect the envircement, such as clearing
vegetation to prevent fires, incorporating a landscaping program to minimize soil erosion
around the perimeter of the property, cementing production and injection well casings
into the ground to depths below sea level, well below the potable water table. In
addition, the site is several miles from the ocean, therefore, there is no impact to marine
life. PGV has developed strict operating, environmental, and safety procedures to ensure
the facility is operating safely and in compliance with regulations. An
EnvirmmentaUSefcty Manager is on site to monitor the facility and to ensure Ghat
environmental compliance is maintained. The applicant has developed an Emergency
Response Plan, which outlines procedures for dealing with any potential emergencies.
The applicant has established an internal hmident Command System, and four incident
commanders have been trained to coordinate mitigation response as required in an
emergency. PGV has also interfaced with the County Police, Fire, Hazardous Materials
emergency responder to coordinate training and to familiarize these outside responders
with the facility.
Mr. Barry T. Mizuno
Page 4
Phe development of the facility has resulted in a number of positive socio-
economic impacts on the Island of Iiawaii, including 1) the elunination of rolling
blackouts, 2) public awareness of the project through contributions and participation in
community activities, 3) financial contributions to the Reading is Fundamental Program
at Keoncpoko School, and 4) payment of royalties to the State of Hawaii in excess of $3
million, which is distributed to the County of Hawaii and the Office of Hawaiian Affairs
(OHA).
This project supports the following goals and policies of the General Plan:
3ne1'gy Clement
* Strive towards energy self-sufficiency for Hawaii County.
* Establish the Big Island as a demonstration community for the development and
use of natural energy resources.
* The County shall encourage the development of alternate encrgy resources.
* The County shall strive to assure a sufficient supply of encrgy to supponl present
and future demands.
* The County shall encourage the development of geothermal resources to meet the
encrgy needs of the County of Hawaii.
The economic benefits and security implications of reducing Hawaii's dependence
on imported fuels for energy production have been recognized for a long period of time at
all levels of government. This has resulted in a general policy of support for alternative
energy research and development.
Ecannmir /?lemcnl
* Provide residents with opportunities to improve their quality of life.
" Economic development and improvement shall be in balance with the physical
and social environments of the is!and of Hawaii.
* 'file County of Hawaii shall strive for diversity and stability in its economic
system.
The County shallprovide an economic environment which allows new, expanded,
or improved economic opportunities that are compatible with the County's natural
and social environment.
Mr. Barry T. Mizrmo
Page 5
The County of Hawaii shall stove for an economic climate which provides its
residents an opportunity for choice of occupation.
7,and Ure Element
Designate and allocate land uses in appropriate proportions and mix and in
keeping wi^_ the social, cultural and physical environments of the County.
The Comity shall encourage the development and maintenance of communities
meeting the needs of its residents in balance with the physical and social
environment.
The proposed geothermal development activities would not unreasonably burden
public agencies to provide roads and streets, sewers, water, drainage, school
improvements, and police and fire protection. The existing project and proposed
amendments have a negligible impact on public infrastructure and services. There are
approximately 30 employees on the site, and no additional County services will be
required. The employees are mostly Big Island residents, and the increased production
capabilities will not require additional personnel, therefore adverse housing impacts are
not anticipated. Traffic may increase slightly during construction phases, but the added
vehicles do not significantly add to the existing high traffic levels at the intersection of
Pahea-Kapoho Road and Pahoa-Pohoiki Road. No additional infrastructure is necessary
to accommodate the applicant's request, since the proposed use will be confined to the
existing facility, and the applicant is requesting the amendments to incorporate regulatory
standards and permit requirements that have been promulgated and issued since the
permit was originally approved in 1989.
There are reasonable measures available to mitigate the unreasonable adverse
effects or burdens refected to above. Mitigation measures have been established to
ensure the integrity of the geothermal wells. Hydrogen Sulfide (HiS) monitors arc
located in three locations at the project site. Emergency procedures have been
established for dealing with any potential emergencies. Although the project is located
more than 2,000 feet from Lanipuna Gardens and Pohoiki Bay Estates, and more than
3,400 feel from Leilani Estates, there are residences within a halfmileof the project -site.
Due to the relative proximity of the residences to the project area, the applicant has
employed the most effective air and noise emission measures avai'.able, following strict
standards of the Department of Health. The applicant has been and will continue to
comply with all applicable regulations regarding environmental monitoring.
PGV currently utilizes three geothermal injection wells (KS -IA KS -3 and KS -4)
with a pending application for an additional well. All steam, brine and condensate
generated from production wells are injected into these three injection wells at a depth of
Mr. Barry T. Mizuno
Page 6
between 3,900 and 7,300 feet. 'these three wells are authorized and permitted by the
State Department of Health's Safe Drinking Branch. PGV also ho ids the State
Underground Injection Permit (UH -1529) authorizing the operation of the injection wells.
Air emissions are monitored by the use of H2S and particulate matter devices. India
event the I32S concentrations exceed the ambient air standard of 25 ppb on an hourly
average basis (regulated by the State Department of Health Clean Air Branch), PGV has
developed written safety procedures to mitigate any adverse health effects to the
community. At the request of the State Department of health, a monitoring station has
been established at the western property boundary to monitor fcgitivc emissions to this
area. The facility is currently permitted as a Noncovered Source Facility. The
Geothermal Compliance Specialist from the State Department Hcalth is on site daily to
monitor compliance with emission standards.
Noise emissions arc controlled by the use of noise abatement materials and sound
engineering controls. PGV is operating with a noise permit issued by the State
Department of Hcalth Noise and Radiation Branch. PGV is classified as a Class C
facility, which allows the facility to operate at a maximum level of 70 dBA, measured 24
hours a day at the property boundary. Noise is nmrritorcd by use of noise microphone
devices installed at the property boundaries at Monitoring Stations A and B. An alarm
system is installed in the Control Room for early detection to allow prompt action if
required. The noise alarm setpoint for early warning detection is act at 65 dBA. The
measurements obtained at the monitoring stations have all been within the parameters of
health, workplace and other standards relating to short or long term exposure to Hr5 or
noise levels. Drilling muds and other wastes not reinjected are disposed of pursuant to
the State Department of Solid Waste regulations. Sewage disposal is by cesspool, in
accordance with the State Department of health rules.
In the original Geothermal Resource Permit, the permittee agreed "not exceed a
general noise level of 55 dBA during the daytime [lam to 7pm] and 45 dBA at night
[7pm to 7 am] measured at the nearest residence." This general noise level could be
exceeded by up. to 10 dB A,but not for more than 10% of the time within any 20 minute,
period. There was also an except; on for periods of venting aid drilling. These standards
applied only until noise regulations were adopted by the State or County. Because the
DOH adopted regulations in 1996, those now apply, and the permittee is allowed to emit
up to 70dBA, 24 hours per day. This is unreasonably loud and the Planning Commission
believes that nearby residents are justified in seeking a stricter standard. It is also
understandable that they did expect that noise standards would be so drastically
relaxed, after the rumnittee made representations that the noise levels would not exceed
55/45 dBA.
The permittee's noise monitoring records show that it has generally run below
55dBA during the day, but because it is a baseload facility, and runs 24 hours per day, it
is not mcch quieter at night. While the facility itself does not greatly vary from hour to
Mr. BarryT. Mizuno
Page 7
hour in the amount of noise it emits (except for unusual events, such as steam looks),
atmospheric and wind conditions significantly affect the noise levels in the community,
and to some extent, also affect the readings at the monitors.
The permittee has stated that it does not expect its increase in power generation to
result in a significant increase in noise, but wants same regulatory leeway in the setting of
standards. The permittec also believes that it sheuld not be regulated more strictly than
other facilities in the agricultural district.
The residents have asked that the noise levels not increase, and want the permittec
to seek ways to reduce the noise impact from the facility. per these reasons, the
Commission recommends that the permittee hire a qualified engineering consultant to
review the present operations, as well as to advise on engineering the Best Applicable
Control Technology (BACT) into new equipment to be installed at the plant.
The proposed noise levels have generally been achieved by the permittee during
the January -dune 2000 period. They are not meant to imply that these are levels which
are "dcsireable" in an area like this. They have been set at a level which the facility
should be able to meet, in recognition of the fact that it provides an important community
benefit, and is legally operating under a much more lercent standard. At the same mita,
the SACT requirement means that feasible noise reduction measures must be
implemented, unless the facility substantially cermplies with residential noise standards.
The Department does not wish to mislead the community about the purposes and
level of its enforcement of the noise condition. Its role is to ensure that the facility
generally runs within the permitted levels. it may spot -cheek the data it receives from the
permittee for reliability, and it may require actual measurements of noise levels at
residences, but it does not have the capability to respond to individual complaints on a
daily basis.
With regards to liability, the Commission recommends that the pemniltoe shall
keep in force a general liability policy with limits of not less than $25 million per
occurrence, and shall furnish the Planning Department with a certificate of insurance
annually.
The Planting Director has withdrawn the previous recommendation that the
Geothermal Asset Fund be capped at $1,000,000- It became clear from the mediation
that no one is happy with the present Geothermal Asset Fund. The surrounding
community is frustrated that only $1,800 in claims have been paid from the fund. The
permittec is unhappy that it contributes $50,000 annually to a fund that has not been put
to any practical use. The Director notes that the present rules make the Planning
Commission function like an insurance claims manager, a role completely un dse its other
responsibilities. There is, however, nothing close to a consensus about what to do about
Mr. Barry T. Mizuno
Page 8
the Fund. The Fund is a major opportunity, and the Planning Department plans to hold
further discussions with the affected community about its use A change in the rules for
the fund does not have to be lied to this permit. The rules can be changed at any time- A
present, however, because there is no agreement, and because the aimual contribution
was a result of the prior mediation, the Department does not support any reduction in the
amount contributed by the permittee. The Department is willing to consider the
suggestion of some community members. that the opportunity for owners to parrticip nor,
a voluntary buy-out program be re -opened, and perhaps expanded to a wider
geographical area, and perhaps include some who built after the original permit was
granted, but this requires further study, and it does not have to be tied to this permit.
His Planning Conrunission is comfortable with HiS levels presently set by the
State Department of Health, but to ensure that these are kept, Condition No. 17 is
amended so that the permittee will not ask to increase the levels. -
Based on the above, the request to amend Geothermal Resource Permit No. 2 (87-1) is consistent
with the criteria contained in Section 12-6 of the Planning Commission Rule 12 and
Chapter 205-5.1(e), Hawaii Revised Statutes, and (he following conditions arc hereby amended
and renumbered accordingly (material to be deleted is bracketed, material to be added is
underscored).
The Geothemnal Resource Permit grants approval for those uses and
improvements described in the "Geothermal Resource Permit Application
Amendment for the Puna Geothermal Venture Project," dated March 1989, except
as amended, modified, or conditioned by this Geothermal Resource Permit.
Execpt as otherwise described in this permit, no other uses are authorized by this
permit[,]. The following uses are nllotved tinder this Geotherowd Resent cc
Per mit• turbines, generators, air coolers fans An comp, esora, diesel driven
rp imps and motors production wells, injection wells sicam sep n-idin c and
accumulators, electrical transformers contraI vfives. rock inuffers, Hih
abatement e uipment welding machines drilling -ips end nnx'l iiry
e�uipmc tt designed and operated for thn yen erati_otr of rip 'e CO MW of
geothermal power and any proposed other uses of the gcothemmal resource or
improvements to the land, whether to be conducted by the permittee or a third -
party under contract to, or other agreement with, the pemintce, shall be subject to
prior review and approval, consistent with the applicable Rules of Practice and
Procedure of the Hawaii County Planning Commission. The Planning Director
may, upon written request or the permittee, approve deviations .fiom the project
layout and uses permitted under this Geothermal Resourcc Permit if stick
amendments arc consistent with the uses permitted and conditions of'.his
Geothermal Resource Permit. No action pursuant to any such request for
deviation by the permittee shall be taken without the written approval of the
Planning Director. Amendments to the Geothermal Resourcc Pcrmi( and its
Mr. Barry T. Mizuno
Page 9
conditions may be granted pursuant to Article 12-9 of the Rules of Practice and
Procedure of the County of Hawaii Planning Commission.
The peanince, its successors, or assigns shall be responsible for complying with
all of the stated conditions of approval of this Geothermal Resource Permit.
Should the Planning Director determine that there is noncompliance with the
Geothermal Resource Permit or its conditions, the permittee may be subject to
enforcement of the Geothermal Resource Permit conditions and penalties
pursuant to Sections 12-10 and 12-11 of Rule 12 ofthe Rules of Practice and
Procedure of the County of Hawaii Planning Commission.
The permittee shall grant unrestricted access to the subject property(ics) to
authorised governmental representatives or to consultants or contractors hired by
governmental agencies for inspection, enforcement, or monitoring of activities
subject to or authorized by this Geothermal Resource Pcrnit. A designated
employee shall be available at all times for purposes of supplying information and
responses deemed necessary by the authorized governmental representative in
connection with such work.
4. During the [period] per of construction [of the pa oject,J or during the drilling
or testing of any well, the permittee shall submit a weekly written status report to
the Planning Department which shall include:
A brief description of the work undertaken during the previous week
under the Geothemral Resource Permit;
A description of the work being proposed during the next weak under the
Geothermal Resource Permit; and
Any other information that the Planning Department may reasonably
require which addresses the immediate environmental and regulatory
concerns of the County of Hawaii or the requirements of the Gcothci mal
Resource Pennit.
The permittee shall submit a written semiannual status report to the Planning
Dcpertmcnt by February 15 (covering the preceding period of July 1 through
December 3l) and August 15 (covering the preceding period of January 1 through
June 30) of each year. The status report shall include, but not be limited to:
A brief summary of work undertaken during the current reporting period
under the Geothermal Resource Permit
Mr. Barry T. Mizuno
Page 10
b. A brief summary of work being proposed over the next reporting penod
mtdcr the Geothermal Resource Permit;
C' The results and analysis of all environmental monitoring activities
undertaken as required by this Geotlremral Resource Permit
d. A lug of any complaints received by the project and the responses thereto;
and
e. Any other information that the Planning Department may reasonably
require which addresses the environmental and regulatory concerns of the
County of Hawaii or the requirements of the Geothermal Resource Permit.
I£any environmental monitoring data collected as requiredunderthis Geothermal
Resource Permit indicates Ithatl the project operations are creating, or have the
inunedinte potential of creating, excessive health or cnvirorunental effects not
otherwise permitted by this Geothermal Resource Permit the permittee shall
[submit such data to the Planning Department within 48 hours of its
identification.] comply with the State of Hawaii Clem Air Branch
nch
Non covered Source Peinut (NSP) reportin g rrgniremen tc anAp I
invnedinte notice to the Department of Herdt provide immediate 11 oticc to
the Planninv Director and provide a cony of nn re or[ sl m tl c Yhinni11 �r
Tl oma rtm en t s in a I t arraunsly syilhttm_�) a rtmcn t of HraI(I i.
"he Permittee shall Corti with the Clan it Air Bratich, Branch,SafQ Drinking Waer
Brunch, an Denarim car t afNoisc and Radiation Br=nch ofthc Dell grl ncnl
o f Hca lth's rccorut k ccfrhueu irer en is The Perini tire shall maintain is
record] rQc Yds in a permanent form suitable for inspection, regarding noise
hydro{yen sulfide emisS'm S, e(Illipment V n Sets, I Till in ytl e- v plir�or
pn�ilvtical resu l(a and shall make such record available on request to the
Planning Director or his designee. [The record shall include:
Occurrence and duration of any start-up, shut -down, and operation mode
ofeach geothermal well and/or facility;
Performance testing, evaluation, calibration checks, and adjustment and
maintenance of the continuous monitor(s) that have been installed; and
All measurements reported in units compatible with applicable
standards/guidelines.]
8. Prior to the commencement of any grubbing or grading activity, the perimirc,
shall:
Mr. Barry T. Mizuno
Page I I
a. Submit a metes and bounds description of all lands to be disturbed
including but not limited to all roadways, well pads, steam gathering
system corridors, injection system corridors, power plant site, and
transmission line corridors to Planning Director;
b. Mark the boundaries of these sites to be disturbed in the field; and
C, Comply with all requirements of Chapter 10 Erosion and Sedimentation
Control, Hawaii County Code (the County grading ordinance)_
9. No construcCon or transportation equipment shall be permitted beyond the
prescribed boundaries of the areas to be disturbed.
10. Prior to commencing any geothermal well drilling, testing,- production, or
injection activity approved under this Geothermal Resource Permit, the pcmrittec
shall submit [to, and secure the approval of, the Planning Director oil a
hydrologic monitoring program to the State Site, Dt ink' n Water Branch,
Semi-ininial testing shall be gerbil -rood in accordance with the Hydrolomcal
Monitorin Pionram (HMP) which is described in the Hawaii State
Undereround Tujection Control (UfC) permit To addition thereto tcstim�(A
the same wells shrill be done within three (3) months after Qtc PC, 'r fttee
submits its Well COMDleti011 2e ort to the Denartnlei t ofLo d Nod N' th - I
Resources and after any event that may cause permittees advices t
contaminate the round water. It data and reports submitted to ttc care
DT inking Water Rrmich shrill be s hbm'tted to the Planning Dirociln. jThc
program shall, at a minimum, provide for the quarterly monitoring of water levels
and appropriate chemical species from existing wells completed within the
shallow aquifer in those areas downgradient of the project arca, including the
Green Lake water supply, as well as from a well located within the project
boundary and completed within the shallow aquifer. The monitoring, sampling
and analysis protocols shall be clearly defined in the program submitted to and
approved by the Planning Director. The monitoring and sampling shall be
ecnducled by a qualified contractor, and the samples analyzed by a qualified
laboratory, selected by the permittce but subject to the approval of the Planning
Director. The selected contractor and laboratory shall operate under contract to,
and shall be funded by the pernittee. The program shall monitor the shallow
groundwater iumncdiately prior to, and during, all periods ofwcll drilling touting,
production, and injection activity approved under this Geothermal Resourec
Permit. `the date obtained shall be submitted to the Planning Director in
accordance with the requirements contained in this Geothermal Resource Permit
for submitral of all collected envirmancntal monitoring data. The County shall
make random checks of the ground water supply no less than every two months.J
Mr. Barry T. Mizuno
Page 12
L 1. If pollution of the shallow ground water is demonstrated to be occurring from the
project conduction, operation or maintenance activities as determined by the
?larming Diregtor in consultation with the Department of Water Supply and the
Department of Land and Natural Resources, the permittee shall immediately take
those measures necessary to eliminate the source of the pollution meeting with tile
approval of the affected agencies. If any geothermal production or injection well
demonstrates that the integrity of the well casing is lost such that the shallow
groundwater are being, or may immediately he polluted by the production or
injection activity of that well, the permittee shall, as quickly as practical
consistent with safety and prudent operating practices, cease the production or
injection activity for that well, and the activity not resume for that well until
adequate casing integrity is restored to the satisfaction of the Department of [,and
and Natural Resources.
(13. In the event the Department of Water Supply determines that the existing Grcen
Lake county water source becomes contaminated by the perminec's geothermal
wellficld system, the permittee shall immediately provide altemative(s) to the
water supply, including the hauling of water if necessary as a temporary
alternative, which meet the approval of the County's Department of Water Supply
and the State Department of Health.
14.1 L2, Only nonhazardous drilling mud additives, as recognized on the "California
Department of Health Services Drilling Mud Additives Use in Nonlavardous
Drilling Muds and Fluids" list, shall be used during the drilling of the geothm
eral
wells, and which list shall be on file with the County Plamung Department.
[t5.]_13. All drilling mud solids and drill cuttings shall be discharged to and contained
within [the well pad sump] an imperneahle conn'tmet an r. A disposal site
or sites approved by the State Department of Health, prior to any disposal activity
covered by this permit, shall be provided for sump containment contests and
other waste materials to be disposed of from the drilling activity. All
sumps/ponds containments shall [be purged in manner meeting with] have tile
approval of the State Department of Health. in tlrc event there arc no DOI-I
requirements, the applicant and the Planning Department shall request for
guidelines from the DOA for the purging of sumps and ponds. Said guidelines
shall be available to the eormnnnity.
[16]14, All geothermal brines, steam condensate, and noncondensible gases produced
during [normal] project operations shall be [injected into the geothermal
reservoir]d=,,nosed of in accord ince w"h the Stafe De artment of Health ;I'll[
Federal Un "ernronnd Injecfon Cot 1 nI permit qui c nerd.
Mr. Barry T. Mizuno
Page 13
[17.]-L5. Prior to commencing any activity approved under this Geothermal Resource
Permit on the project site, the permittee shall submit air air quality a v]
meteorolotical monitorir 1, pprnvram to, and secure the approval of, Ithc
Planning Director of an air quality and meteorological monitoring progrmn. The
program shall include provisions for installation, calibration, maintenance and
operation of recording instruments to measure air contaminant concentrations, the
specific elements to monitored, the number of stations involved, and fioqucncy of
sampling said reporting. The Planning Director shall review and approve the
submitted monitoring plan in consultation with and concurrence of the State
Department of Health. The monitoring and sampling shall be conducted by a
qualified contractor, and the samples analyzed by a qua'.ified laboratory, selected
by the permittee but subject to the approval of the Planning Director. The
selected contractor and laboratory shall operate under contract to, and shall be
funded by the permittee. the program shall monitor the air quality immediately
prior to, and during, all periods ofwcll drilling, testing, production, and injection
activity approved under this Geothermal Resource Permit. The data obtained
shall be suhmitted to the Planning Director in accordance with the requirenicnts
contained in this Geothermal Resource Permit for submittal of all collected
environmental monitoring data.] the State Department of Re ItL i'I A1,
Branch, and shall compIv withII NSPau irircl euts and stnnds 111s. All data
and reports provided to the Clean An Branch vu i stiqurtto the NSP shall he
made available to the Phsuning Director for inspection,
[18.116. The permittee shall apply "Best Available Control Technology" (BACT),-Is
defined in Biwa" Admin istrafve Rules 11-6011r( s e d 1) I 11
a- licab vuundor_Fedm-aland Sia to regr Istions:rdpermits. for air emissions
to all aspects of the project to minimize air quality impacts. BACT means (lie
maximum degree of control for air quality concerns taking into account what is
known to be practical and economically viable. BAC'P for each aspect of the
project shall be Idetennincd by the Planning Director in consultation with other
appropriate govemvicntal agencies involved in the control of regulation of air
quality from geothermal development projects. Such detemninalion shall be made
prior to issuance of any construction permit for that aspect of the project. BACT
shall be subject to review by the Planning Director every five years, corenrnncing
with the date of approval of the Geothermal Resource Permit for the wellficld
operations, and with the date of full power plant operation for the power plant.] in
accordance with applicable Federal and Stat, reegnlations
[19.]17. The permittee shall control all project emissions of hydrogen sulfill o during
[normal] power plant operation [se that the increase in the ambient hydrogen
sulfide concentration due to these project emissions shall not exceed 5 ppb at or
beyond the project boundary] in accordance with the State 1)epari nent of
eaUln Clean Air Branch regulations mrd NS-re-u'rcm crib_ Tile perouttee
Mr. Barry T. Mizuno
Page 14
shall comply wi h all nrovi cions pC the alLpAicable NSP and sball int req, st
any it creast in the levels of hurl aaen If' le gllowed nmdcr the eyistinp NSh
If the allowed levels of hydrogen s ilfde a e ire d firoinulhosealLosod
under the ,resentNSP d e Pet mittee strait Continue to m0c.ttfirstandilrdsin
he present NSP.
[20.]18. With regard to air emissions, the permittee shall submit to the County Civil
Defense and the Planning Department a map and accompanying text that
describes predetermined `horst case" impacted areas.
[21.] 19 (Prior to convncncing any activity approved under this Geothermal Resource
Permit on the project site, the permittee shall submit to, and secure the approval
of, the Planning Director of a noise monitoring program designed to adequately
ensure project compliance with the noise impact limitations contained in this
Geothermal Resource Permit. The program shalt include the monitoring of noise
immediately prior to and during all periods of activity approved under this
Geothermal Resource Permit. The monitoring and sampling shall be conducted
ry a qualified contractor, and the samples analyzed by a qualified laboratory,
selected by the permittee but subject to the approval of the Planning Director.
Tire selected contractor and laboratory shall operate under contract to, and shall
be funded by the permittee. This program should also allow the correlation of lily
complaints ofnoise from the public with the Level of measured noisc, the
meteorological conditions, and the type of operations which occurred at the site.
The data obtained shall be submitted to the Planning Director in accordance with
the requirements contained in this Geothermal Resource Permit for.submitud of
all collceted environmental monitoring data.]
Th e Permittee shall h it a qualif ed cnginem In g collsal It ant ttm study limse
front its csistinL-111 d.PLP so rc ol_mera tion s. The scone of wnf9: s Inll Tch T rte•
a. Dctcrm'r aF n f nd levels 'm fhc s rro m ding comm 'fv d rc to
he enn'tte ' eratio ts. and e,rrcla tun of th e sem ndIcvclilto
levels recorded at the monito ' t; sites on 1 ern 'tree' n overly
p., identification of snec'fc sources of noise foe ticPl:nnt site.
C. Recommendation and ev,11latioD, of noise,ibgt( men tmethuds,
in ciudinn possible tree nlantino and/or berm eonstr erne n
e r 'veering des'pn skrtcl es and sneci(ications and/a c m lel; cut
sheets, and cost estimates for the determination of fcasib ifity and best
available control technology.
Mr. Barry 1'. Mizuno
Page 15
d. Study of other ambient a oke in the )rrunniff ittec's
monitorhig stations to determine the effect of arobi"'t foorse if,
mnr itorin�
c Preparation of a final report and recommended noise abatemet t
urn Cecil oUS—
f. The consultant shall meet at least twice with nearbyrres'dcnts and
with the Planning Director as required. The consrlta Cfi ;I port
and recommendations shall be a public document avalabic to the
Planning Dmectitand the general public
[22.]211 The permittee shall apply "Best Available Control Technology" (SACT) for noise
emissions to all aspects of the project to minimize, project fioise. BACT means
the maximum degree of note control [for noise concerns] taking into account
what is [known to be] practical and economically [viable] reasonable . L3ACf
[for each aspect of the project] shall be determined by the Planning Director lin
consultation with other appropriate govcii=cnlal agencies involved in the control
or regulation of noise from geothermal development projects. Such determination
shall be made prior to issuance of any consuuction permit for that aspect oftbc
project. BACT shall be subject to review by the Planning Director every five
years, commencing with the date of approval of the Geothermal Resource Penult
for the wchfield operations, and with the date of fill power plant operation for the
power plant.] upon the recommendations of (her, rise q9u-Sn tont.
[23.]21 The pence i[tee shall [notify the Planning Department and] co nuns with the State
peen i toren t of Wealth Orut n A it B ra n ch (NSP) put init it o Cee retn� ire menis
prior to any geothermal well and12ilcl'ne cleanout t tilit]
stiffirro Permittee shall also mail notice scventy-hvo M) hmm -p,= for t
activities to the Planning Director and to any resident of the District of Puna
who snb ills (Tich nerneand iddresst the P 'tt q C "such
notification. In ecWhon thereto any resident within 3500 feet of the pernnirce's
project boundary who has previously requested such notice, shall be n ri'Lcd at
least [twenty-four (24) hours in advance of the open venting of each gcolhmmal
well and pipeline cleanout and] 14 days before commencement of drilling.
[initial notification to residents shall be made in writing, offering the oppo (unity
to be placed on the notification list. Airy other person may request to be on the
list. The permittee shall notify the Planning Department immediately prior to the
open venting of any geothermal well and pipeline cleanout. The permittee shalt
notify the Planning Department following completion of each geothermal well,
prior to the demobilization of the drilling fig.]
Mr. Barry T. Mizuno
Page 16
[24.]22. [Until such time as noise regulations are adopted by the State or County, the
permitteeshall comply with the following guidelines which shall be enforced by
the Planning Department:
During power plant and wellfield operations, the permittee shall not
exceed a general noise level of 55 dBA during daytime and 45 dBA at
night at the current ncarest residence. For the pzgtoses of these
guidelines, `night" is defined as the hours between 7:00 p.m. and
7:00 a.m.;
b. The allowable noise levels may be exceeded by a maximum of LO dBA;
however, in any event, the generally allowed noise level should not be
exceeded more than 10 percent of the time within any 20 -minute period,
and the permittee shall conduct all operations so as to minimize the
occurrence, frequency, and duration of this impact noise;
The noise level guidelines specified above shall be waived only for the
specified duration of authorized open geothermal well venting from all
wells, steam pipeline cleatout periods, and the drilling and losdng of wells
from well pads E and P. During these authorized periods, FACT shall be
applied. In addition, during the drilling and testing of welts fmm welt
pads B and F, the permittee shall meet a general noise level OHS MA
during the day and 50 dBA during the night at the current nearest
residence; and
For the purposes of these noise conditions, the `nearest residence" is
hereby defined as: For three years following the dale of granting of the
Geothermal Resource Permit, that permanently occupied dwelling ucarest
the applicable noise emission point as of the date of the granting of this
permit; for all following years, that permanently occupied dwelling nearest
the applicable noise emission point.
Sound level measurements shall be conducted using standard procedures
with sound level maters using the "A" weighting and "slow" meter
response unless otherwise stated.]
The permittee sl atI report av c noise levels for each hour and shall
report a daily average and a monthly ave pe R ept as allowed belor
In. The avern�lnnnth shall unitx1Ced 54 dBA
b. The average for any rlav shall not exceed 57 dBA
Mr. Ban'y T. Mizuno
Page 17
c The avcraee for nny ITour shill not exceed 62 dBA
d The aver age for an y five-m'nrte periorlslrall not es cc ed
69 dBA.
Th e allowable noise levels iflay_he exceeded ateach monitor' n siatinn by o
morn thnr 4 df3A for tI c follmv'naPeriods: five months' year fo r t1L
monthly average: five (lays per month for the daily average; nr d five I ai s
Pcr month for the hourly average
Duringspecified stenm pipeline cleanm t periods, construction a rd test
wells. BACT shall be applied and the allowed noise levels may be exceeded
by not more than 5 dBA Dorin2 spcc'fed periods of drill'ne tl e permittee
shall cmnplywith Dep=me L�o(Flcalth's noise i'u les ancnnit
rcau irenr en ts.
1 eras rp shall be done in a in i n il c r co r s i5teut ill tl e je <n �rtinp of il o'sc
rlataby the pcnniltec in the Jmrniry-7unc 2000 period. "file montlly_
average slmll )Ztile aritlunctic mean of the daily averanes The daily
average shall be the arithmetic swan of tile lio nrly avers yes
The ocw allowable noise levels shall take effect six moi tlis after the
'nstalhtion of any addiCon al gc craYng cwt ui pent
Noise levels shall be measured at the nrescnt monitorir! stations A and A
which s1inll be averaged Sepnratcly nod not combined e, TI Ioemio r of the
no nitor'ng stat or s mnv belie rite n ggd with the a11I roval of the P In n r i i ng
Dirceton if reeotnmmrdcd by fhc noise consultant to make the noise Icrcl n
the monitoring slations more rclinbly correlate with th e noise levels at file
nearby residences. If tl I c 10C lino is chauoc 1, I h c allowed Ieyels Incy )e
A"Stcri atcordinmy
Dain front periods in which the noise mouitoring includes significant
amounts of noise from smircas other than tile permittees operations Such as
aaricu lural operations rain wind and traffic, shall be excl rded
The Director, using the recmnmendafo s ofthe consultant, sl all esti I'sl
standard adi ustments for the effects of ambient noise on tine dnta re ofl marl
Crop fhc mmritorino str tions Por exam IP e iC thg consrd tart
deterninics that
a typical daily average of';] df4A world be 49 dBA ClinnllatiI12 tile effect Of
amhient noise, the lower figure shall be considered tile actual noise level.
The Director using the recmn mandation oC fhc wr sr Rant thall establish
Mr. Berry T. Mizuno
Page 18
standard adinstine tsar thediffermrce bet v e i [he data renmted front fl
ie
monitoring stations and the noise levels due to the n • rmittee'ircot crit'
pnerations at the most affected residences, so that tile allowed noiso levels e
not exceeded at tl e residences whichg e on tl�e average the most affected
6t' noise Tlie nn noose of the standard adjt st ptsis to ensme fl ttI
allowed mse levels experienced at residences ducto TIS -p .ttee's
geothermal operations are notexce ded
Sound level rneesu -omen fs sl all be cm d ct d s' esta d d urn cod S
)vfth sound level miters i sing he "A" we'gl tin" a d "sl tc ponsc
11 "1 Qt I' envise stated The Method Ofnneas I I rc In en t'haII fnIlow IT.A l:
§11-46-9.
The permittee shall) ave as alarm systema I' I 1 -t t ff'f ti �'s I,vcl
exceeds 68 dBA for more fhnn 5 minute ivern2c.
The permittee shall record quid res and to all corD,lanits flf CxccqskT anise
and forwv d a record ofsuch complaints to the Planning Director mm tlihv,
alone with nlon1LOIJ1 9 records sl 0vdng the noise .1eveN recorded of file time
of the complaint All noise monitoring recorcig shall be C rnished s o rl lv to
the 1319s ring Dirertor TI pen s'ttec sh�l explalsvKexcecd: ce of
9, th o, ized n n i se levels
B dnirc any en forcemcnt gctioT is ja l< an on vin latie ns the,) e� .rmittce slin 1 hn
given a reasonable pn_portm iN to cute any violations An exceedai ce sl all
not be considered a violation unless the repwited noise level is riore flue
3 dBA abovethe ambientnr bacicgrm nd r ois 1 el,acr A.A R §1l-T!(�_(g)
and (11).
The ncrmittee sl all be con cl sbely dee ed to I c i P BA('T' an 1 I c in
co�nliance with all noise standards ifthe noise level sol lv due to its
ri(t) errnal operationsat the m st affected i sidence5, SUbstantially
with the current State DepirlinentofNe Itl st dprdsfnr"( assA"
(residential) districts For the epos s oft) is 1pi agrpL,,ELc permittee
sn hstan Bally complies with tine standards'£
a. The aver ge hourly noise level, do apt exceed 55 d1iA dowing
the day (7-O(�am Io 1000 n.m. and 45 dBA aCnphtll119
p.m to 7 00 --Lno, than 10 % of the time 'tl t1i, Lured
vight hours separately considered. and
h During those hours wl cn the noise levels are ex ceded the
veravc exeecda is is nt mor thm S dBA i d tl e e'a pg
Mr Barry T. Mizuno
Page 19
houriv noise level never exceeds 60 dBA days and 55 dBA
nigl is Periods o(ste�nr gin cline cleanout, construction well
drilling, and higher unnsual events shall he excluded and thr
standard idiusturiclits referred to ahavc shall apply
ifthe consultant determines that a si"mit cant reduction in noise levels ani to
achieved, at a reasonable cost by a vegetative screen d/o th hiiam
tl nermlttec shall set aside nn area or areas far such a screen -
The Inca tin of the vegetative screen and/nr card cn berm, if rerota no d ri
shall be agree a 9n betwece tl e Plan ti rg llirector a I tl n ittee and
. Is tall not unduly interfere with tl c per 'ttr ' power transmission
casements, acecss a dtl p is of d o permittce's noerafm s a I ay
be relocated fmonerat o tat rensops to mi enuivalent locatb TI
Geothermal Asset Maud may be sed for the cost pf pla'itinga rI nin,Alliug
file vegetinr tI
pnrnoses of thisap ragaph_a"s�iguiflcant redsefnn'mea s one of -3 dhtS or
inure.
125.123 Pursuant to Article 12-5 of the Rules of Practice and Procedure of tile County cf
Hawaii Planning Commission, prior to initiating construction of the project, the
ponnittce shall submit the following to the Planting Director'
s. Copies of approved permits and other applicable approvals for the project
from other county, state, or federal agencies as applicable,
b. Final plans orprovisions for monitoring environmental effects of
project as required by this Geothermal Resoucoc Permit or othery iso
required to ensure compliance with County rules and the roles of the State
Department of Health and Board of Land and Natural Resources and other
permitissuingagencies;
C. A final plan of action to deal with emergency situations which may
threaten the health, safety, and welfare of the employees and other persons
in tite vicinity of the proposed project site, and
d. A final site plan and elevations of proposed temporary and/or permanent
shnctures for the project.
[26.]24. Prior to conmrencing any activity approved under this Ceothcrmal Resource
Permit on the project site, the ponnittce shall submit to, and scenic the appiovnl
of the Hawaii County Civil Defense Director a final plan of action to deal with
emergency situations which may thueaten the health, safety, and welfare of the
Mr. Dant' T. Mizuno
Page 20
employees and other persons in the vicinity of the proposed project site. The plan
sliall include but not be Limited to, the following elements:
a. A description of the project facilities and operations, with site plans
identifying areas of potential hazards, such as high pressure piping and the
presence, storage and transportation of flanmiablc or hazardous materials,
such as Lubrication or fuel oil, isopentanc, hydrogen sulfide, and sodium
hydroxide;
b. A description of emergency services available off-site to respond to any
emergency;
C, A description of the current onsite chain of command and responsibilities
of project personnel in the event of an emergency; -and
c. A description of potential project emergency situations, such as loss of
well control, chemical spills, hydrogen sulfide exposure, pipeline niplure,
fires, contaminated solids, etc. identifying:
(i) technical data on the nature of the hazard (for example, (he
concentrations of hydrogen sulfide in the various areas and the
hazard associated with these concentrations, the corrosive
clraracteusdcs of (lie abatement chemicals), or any data regarding
the possible aerial extent of each potential emergency situation;
(ii) the warning systems (such as hydrogen sulfide detectors) used to
alert personnel of (lie hazard;
(iii) the location and use of equipment used to control the hazard (such
as fire pro(cetion equipment or isolation valves) or repair
hazardous equipment (such as welding equipment or casing
sleeves), and safety equipment for personnel (such as respiratory
packs), including identification of the personnel trained in the use
of that equipment; and
(iv) provisions for the monitoring, detection, and inspection of wells
and plant facilities for the prevention of emergency situations.
Provisions to address natural hazards (such as Lava flows, earthquakes, and
storms) that identify warning systems, control options, steps for scouring
and shutting down the facility, personnel evacuation, and notification to
appropriate agencies;
Mr. Barry T. Mizuno
Page 21
f. The location and capabilities of available medical services and fact Pities
and pians for treating and transporting injured persons;
g. Evacuation plans, including meeting points, personnel rosters, and escape
routes;
h. Training requirements for personnel, including procedures for emergency
shutdown, handling of emergency equipment, spill prevention, fust aid
and rescue, fire fighting procedures, and evacuation training;
I _ Provisions for periodic emergency preparedness drills for personnel;
j. Detailed procedures to be used to facilitate coordination with appropriate
federal, state, and comity officials during and after any emergency
situation; and
k. Procedures to he used to identify and infomr all residents within
applicable distances of the project of the possible emergency situations,
vo mings, and responses in advance of conmacncement of project
operations and the methods by which all individuals affected by a given
emergency will be notified mad evacuated, as necessary.
Copies of the emergency plan shall be made available to the public by the
applicant.
[27]25. Reports slid records of emergency situations shall he submitted to the Planning
Department upon occurrence of such emergencies.
[28.]26. Within 48 hours aRcr an earthquake registering 6 or above on the plainer Scale
and/or within 48 hours after an eruption has occurred, all wells within 10
kilometers of the epicenter or eruptive center, shall be examined for any physical
changes which would alter its downhole integrity. A report of this examination
shall be filed with the Planning Dcpatment within 48 hours of the examination.
[22]1, La the event the Hawaii County Civil Defense Agency determines that an
emergency sintann resulted from the permitted geothermal activity, the permittce
shall bear all costs of evacuation. The Hawaii County Civil Defense Agency shall
be responsible for public and media notification and evacuation of members of the
public in the event the Agency deems such action necessary as a result of an
emergency situation.
[30_]28- Prior to the commencement of any surface disturbing activity, the permittce shall
conduct an archaeological survey of those areas planned for surface disturbance
Mr. Barry T. Mizuno
Page 22
not previously surveyed and submit the results of this survey to the Planning
Department for review and approval.
[31.]29. If construction activities expose any cultural remains, the permittee shall
immediately cease work in the area of the cultural remains and contact lire
Planning Department and the State Historic Preservation Office- As appropriate,
a qualified archaeologist shall be retained by the permittee to implement any
necessary mitigation measures and monitor further work. Work in the affected
arca shall not resume until such time that clearance is obtained pool the Plemtin,
Department-'
[32.]30. The lighting used shall not interfere with the operations at the observatories
located on Mauna Kea. To meet this requirement, the permittee shall comply
with the requirements of Chapter 14, Article 9 of the Hawaii County Colic,
relating to outdoor lighting.
[33.]31. All lights shall be at a minimum level consistent with the safety of operations and
shall be shielded or directed away from surrounding residential or populated areas
and not interfere with important biological resources in the arca.
[34.]32 The permittee shall submit to, and secure the approval of Lae Planning Du color of
a detailed landscaping mid siting plan. 'ihe siting plan shall show plan and
elevational views of all proposed temporary and/or permanent structures for the
project. "file plan shall also show the site topography, natural features and
proposed beaus, planting schedules, tree sizes, heights (actual size of trots to be
placard), type of irrigation system, etc. Installation of approved landscaping
improvements shall be commenced within three weeks from the completion of
crush liction of each well pad, access road, or other facility. The plan shall also
include:
A landscaping maintenance program,
A line -of -sight analysis, being especially sensitive to views from
surrounding residences, of theview planes from the site property lines,
from the intersection ofi,cilani Avenue and the Pahoa-Pohoiki Road, for
the intersection of the proposed access road and the Pahoa-Kapoho Road,
from the intersection of Lauone Street and Hinalo Street in Lanipuna
Gardens, and the intersection of the Kapoho-Kalapana Road and the
access road to Vaeationland; and
To the extent possible, the well sites and power plant shall be landscaped
and sited to reflect tl:e existing agricultural character of the area, and
utilize native plantings.
Mr. Barry T. Mizunn
Page 23
[35.]33. To the extent compatible with engineering and aesthetic considerations, all
exterior surfaces shall be rough texture, with no reflective metal, and no reflective
glass surfaces oriented toward surrounding residential or populated areas within.
'line of sight. The exterior of all project structures, including fluid conveymiee
pipelines, shall be painted in colors so as to blend in with the surrounding
environment.
[36.]34_ The permittee shall submit and secure approval of revegetatiovu site reclamation
plan meeting with the approval of the Planning Director in consultation with the
Forestry Division of the Dopannacnl of Land and Natural Resources. When
construction is compacted on any individual project site, or if the project arca is
abandoned, all denuded areas on and around the project site shall be revegctaled
in accordance with this plan. Said plan shall include appropriate security to
assure its implementation in a timely manner.
[37.]3L, The permittee shall obtain and maintain those bonds required for project
operations by the rules and regulations of the Board of Land and Natural
Resources and the Department of Health.
[38.]36 The permittec shall obtain and maintain builder's risk and compmhcusivc liability
insurance for project construction and operation activities, with a limit of int Tess
than $25 million per occurrence.
[39.]32 In accordinea with cnm{nnnity nati ti caimr req u i remcn is ofthc State
Department of Ilea lih Noncovcred Source Perm i(�NSP), the [The] permit(cc
shad, notify each resident houschold within a radius of 3500 feet from any
geothermal well at least twenty four (24) hours prior to[, and again the morning
of,] any planned venting of [that well] a geothermal well. Each resident within
this radius of 3500 feet shall be offered the opportunity to voluntarily leave the
area during the well venting. The cost of such voluntary lcaving, up to a
maximum of $100.00 per resident or $200.00 per household, wlucticvci is leaser,
shall be home by the permittee. Upon adequate demonstration [to the permittee]
that any such resident is unable to pursue his normal, legitimate employment or
business activity as a result ofsuch voluntary leaving, the permittee shall
reimburse that resident for that one day's lost income, in an amount not greater
tl:mr $150.00.
[40.]38. Upon adequate demonstration to the permittee that any adverse alteration critic
quality of tlrc water has occurred as a result of vcmmg to the atmosphere, the
permittee shall immediately rinse the water catctunia t system and replace the
stored water of any water catchment system within a radius of 3500 feel of any
well. Upon adequate demonstration to the permittce that any agricultural crop
Mr. Batty T. Mizuno
Page 24
damage resulted directly from any of the permittees well venting operations, lire
pennilme shall also provide compensation to the owner of agricultural operatimts
located within a radius of 3500 feet of that well. In either situation, cmupcusation
will only be considered if agricultural crops and water catchment system are
inventoried and registered with the permittee prior to the venting, after requests
shall be considered by permittee on a case-by-case basis.
[41.]39, Tlie permittee shall establish and publish a telephone number for use by local
individuals for the lodging of complaints or inquiries regarding status of
operations. A designated representative of the permittee shall be available, 24
hours a day, to respond to any local complaints or inquires.
[42.]40_ Large velumie deliveries to the project site shall be limited to daylight hours. Por
the purposes of this condition, daylight hours is defined as the hours between 7:00
a -in, and 7:00 p.m. This condition shall not apply for vehicles responding to
emorgeneies.
[43.]41. An extension of time for the performance of conditions within the permit may be
granted by tare Planning Director up on the following circumstances: t) the non-
nerfonmance s the result of conditions that could not have been foreseen or arc
beyond the control of tire applicants, successors, or assigns and that arc not (hc
result of their fault or negligence; 2) granting of the time extension world not be
contrary to the General Plan or Zoning Code; 3) granting of the time exlmtsion
would not be contrary to the original reasons for the granting of the Geotherma!
Resource Permit; moist) the time extension granted shall be for a period not to
exceed one (1) year and 5) if the applicant should require an additional extension
of time, the Planning Director shall submit the applicant's request to the Planning
Cormnission for appropriate action.
[44.]42. All other applicable rules, regulations, and requirements, including those oftl-c
State Department of Health and the State Department of Land and Natnrai
Rosourccs shall be complied with.
[45.]43. The ponoutce shall obtain, and comply with the provisions of, permits to drill,
modify use or abandon, as appropriate, fora the State Board of Land and Natural
Resources for each geothermal well approved under this Geothermal Resource
Permit.
[46.]44 The permittee shall obtain and comply with the provisions of, Underground
Injection Control Permits, as appropriate, from the State Department of Health for
ad geothermal injection wells approved under this Geothermal Resource Penni[
A copy of the UIC Permit and any conditions shall be available in the County
Plarning Department
Mi. Bary T. Mizuno
Page 25
[47.]95 The permil!ee shalt obtain, and comply with the provisions of, Authorities to
Construct and Permits to Operate from the State Department of Health for all
applicable project operations approved under this Geothermal Resource permit.
[48.46_ The perann cc shall secure [all necessary approvals and-Icaranccs including]
Final Plan Approval pursuant to Chapter 25 of the Hawaii County Code, [within
one (1) year from the effective date ofthe Geothermal Resource Perroiti rin, 'ro
each in crerut en fat increase io altiverp ro duction.
[49.]4-7 Construe ti on shall commence wilhin[cne(I)year] two tears from the date of
receipt of Final Plan Approval for each inm emonfu in c"itse in poste a -
production.
[50.]48- '.he permittee shall submit a written semiannual status report to the Planning
Commission on the pciumuce's best efforts to address/comply with the "Other
Agreements and Recommendations" as contained in Section 5 of the hnal report
on "Mediation of Geothermal Resource Permit Application 87-1" dated August
21, 1989, and in Section 5 0°Rinal Report" dated December 30.2000 on the
mediation of the I)i oposed amendments to conditions emrtafned in the
"Application For Ame dnacnt to Geothermal Resent cc Permit (87-1)_'
regarding but not limited to the collateral agreements and commitments the
pcmrince made during the mediation process, and which the permittee considers
to be contractual obligations subject to the issuance of satisfactory Gcothernal
Resource Permit. 'Phis status report shall be submitted by February 15 (covering
the preceding period cf Jury 1 through December 31) and August 1.5 (covering the
preceding >eriod of January 1 through Tune 30) of each year.
[51.]49. Prior to the issuance of the first huilding/construction permit under this
Geothermal Resources Permit (GRP) by the Courtly of fmwaii, the Statc of
Hawaii and the pemrittec shall each contribute towards a Gcothernal Asset Rued
or other appropriate existing fund for the purposes ofgeothermal impact
mingaoon efforts within the District ofPuna. The peruhtec's initial conuibution
to the fund shall be a sum of $60,00, due within thirty (30) days after the r.`feenvc
date of this GRP permit, and amoral sums of $50,000 due on or before the
anniversary dale of this GRP permit over a period of eight (8) consecutive years
thereafter for a total of $460,000. Annual contributions thereafter shail be
determined between the permittee and the State of Hawaii or $50,000 annually,
whichever. is greater. The State's initial amoral contribution to [lie Gcothernal
Asset Pund shall be the net revenues derived from the resources generated by the
PIGP-A Well, or a similar amount from other State funding sources less any
allocations entitled to the Office of Hawaiian Affairs and operations and
maintenance costs. In :he event that future enabling legislation provides for a
percentage of the Stales geothermal royalties to he allocated to the County, upon
Mr. Barry T. Mizuno
Pago 26
concurrence with the County Council, said royalties may aiso be deposited to the
fund. The administration and expenditure of assets from this Geothermal Asset
i'und shall be in accordance with rules, regulations, and procedures developed for
that purpose by the County in accordance with Chapter 9I, Aawu i I2 ev-sed
tatules and with participation of Puna residents or representatives thereof, which
s'naII ill cInde, but not be IOnited to, provisions and onteria to enable the Lrst
priority of distribution for temporary or permanent relocation of those proporty
owners who are found, in accordance with criteria established in the roles, to be
adversely impacted by the activities authorzed, provided that such relief is
applied forwitlnin a period of one (1) year of'hc impact. A priority list of intpacl
mitigation projects may be establisher) by the County Council or agency
dusigmated by ill Council in conjunction with Puna residents or designated
representatives thereof, with the exception of upgrading existing subdivisions in
the Puna District to current subdivision standards and specifications of the County
of Hawaii. Should any other district(s) of the County ofHawan be proved to be
negatively impacted by activities authorized under this or any other subsequent
010, that district shall receive a pro rata share of the fund assets as may be
determined by the County Council or agency designated by the Council with
expenditures to follow a prioritized schedule determined as outlined above. The
rights granted to the permittee shall not be conditioned upon any contribution or
further participation by the State m the fund nor with respect to Iho creation,
management, and operation of the fund other than set forth above.
50. Upon to, of the opernliens or ebnn donnncnt of nny Iort' f tl
affected site The land shall Inc graded to bled ivith the sill rounding area,
,o d i-swe etated Ir i Cher the site shalljse left in a nonhazardous c udilion.
Plan Cor emnnliance with this condition shall ll be submitted to file Piquin,g
Director for revimv and apIlInval wth'n r incty(90) days fro tli dnt, of
(in "InTation or ahandm merit ndor cum nleL'nn of the plan noL cc f
taimpletiou shall he given to tl ePl ing DTc 1
This approval docs not, however, sanction the specific plans submitted with the application as
they may be sub'ect to change given specific code and regulatory requirements of the affected
agencies.
Mr. Barry T. Mizuno
Page 27
Should you have any questions, please contact Alice Kawalia of the Planning Dcpamhncnt at
961-8288.
Sincerely,
i
Geraldine M. Giffin, Chairman
Planning Commission
cc: Department of Public Works
Department of Water Supply
County Real Property Tax Division -
Department of Land and Natural Resources
Kazu Hayashida, Dircctor/DOT-Highways, Honolulu
DepaCmcnt of Health
Civil Dcfensc Agency
Department of Business, Economic Development & Tourism
Mr. Jack Dean
Ms, Annie Szvcteez
Mr. Robert Kochy
Mr- Al Dettwcilcr
Diane and Steve Moynihan
Jmmifcr and Dolan Perry
Mr. Steve Philips
Ms. Aurora Marnnovich
Ms. Kate T. Harrison
Ms. Paula Z. Helfrich
Mr. Donald M. Thomas
Mr. Gone Thomas
Ms. Athena Pcanut
Ms. Luana Jones
Ms, Marlene Dykema & Mr. Jim Rice
Ms. Reno Siracusa
Colin Love, P_sq.
R. Ben' I'sukazaki, Esq.
NEIL EN�ERettR�.µ1 RIE
d,la^"^�Ny,
/
Y i
W
GVV
TMK 1-04-01:19, Kapoho, Puna, Hawaii
(Well Pad B)
Well Coordinates:
154°6_4,7-11'W d¢br NS
Geothermal Resource Mining Lease:
naHm+�'
STATE OF HAWAII
DEPARTMENT OF LAND AND NATURAL RESOURCES
POST OFFICE BOX 621
HONOLULU, HAWAII 96809
Kapoho Land Partnership
MAY 31 2011
GEOTHERMAL WELL DRILLING PERMIT
Kapoho State 15 (KS -15)
Kapoho, Puna, Hawaii
TO: Puna Geothermal Venture
'l P.O. Box 30
7 Pahoa, Hawaii 96778-0030
Your application dated May 16, 2011, for a permit to drill a geothermal well on land located
within the Kapoho Section of the Kilauea Lower East Rift Geothermal Resource Subzone and
covered under the State of Hawaii, Geothermal Resource Mining Lease No. R-2 is approved.
Well Designation:
Kapoho State 15 (KS -15)
Location
TMK 1-04-01:19, Kapoho, Puna, Hawaii
(Well Pad B)
Well Coordinates:
154°6_4,7-11'W d¢br NS
Geothermal Resource Mining Lease:
19° 28'45" N
R-2
Leased to:
Kapoho Land Partnership
Subleased to:
Puna Geothermal Venture
Operator:
Puna Geothermal Venture
Ground Elevation;
743' Above Mean Sea Level
Projected Depth:
7,500' True Vertical Depth (TVD)
Target:
Fractured basalt below 4000' Measured
Depth (MD)
Approval is granted in accordance with the Department of Land and Natural Resources'
(Department's) Administrative Rules,
Chapter 13-183, Hawaii Administrative Rules (HAR), and
subject to the following conditions:
EXHIBIT "B"
GEOTHERMAL WELL DRILLING PERMIT MAY 3 1 2011
Kapoho State 15 (KS -IS)
Page 2 of 3
(1) All work shall be performed in accordance with the permission and terms of the occupiers
of the land, the drilling and completion program submitted with your application, the
Department's Administrative Rules (Chapters I3-183 and 13-184, HAR), and all other
applicable Federal, State, and County laws, ordinances or rules;
(2) The permittee, its successors and assigns, shall indemnify, defend, and hold the State of
Hawaii harmless from and against any loss, liability, claim or demand for property
damage, personal injury and death arising out of any act or omission of the applicant,
assigns, officers, employees, contractors and agents under this permit or relating to or
connected with the granting of this permit;
(3) The permittee shall observe and comply with all valid requirements of County, State, and
Federal authorities and regulations to the land and permittee's operations including but
not limited to, all water and air pollution control laws and those relating to the
environment;
(4) The well and bottom -hole location shall be located more than 100 feet from the outer
boundary of the parcel of land on which the well is situated, or more than 100 feet from a
public road, street or highway dedicated prior to the commencement of drilling, unless
modified by the Chairperson upon request;
(5) The permittee shall notify the Department, in writing, of the date of the start of the
drilling operations;
(6) Prior to drilling, the permittee shall submit to the Department the bottom -hole target
location and direction of any proposed deviation;
(7) All Blow -Out Prevention Equipment (BOPE) and cemented casing strings shall be
pressure tested before commencing any other operations on the well. The minimum test
pressures shall be approximately one-third the casing internal yield pressure rating,
providing the test pressure shall not be less than 600 psig or greater than 2,500 psig, and
shall be applied for a period of thirty minutes. The results of the pressure tests shall be
reported on forms provided by the Department;
(8) Class "G" cement shall be used in the casing cementing operations and shall contain as
high temperature resistant admix;
(9) A real time monitoring device shall be installed for the drillers and a pit alarm system
shall be included with this monitoring device. All toolpushers, drillers and denickmen
shall be properly trained in the use of the monitoring equipment;
C)
GEOTHERMAL WELL DRILLING PERMIT
Kapoho State 15 (KS -15) MAY 3 1 2011
Page 3 of 3
(10) If changes to the proposed drilling program are contemplated, the permittee shall obtain
the Chairperson's approval prior to implementing such changes;
(11) When drilling has reached a depth of not more than 50 feet below seat level, the
Department's representative shall be notified, with reasonable time allowed for travel to
the site, to witness the retrieval of a representative ground water sample and the
measurement of the static water level. The permittee shall have the sample analyzed by
an independent laboratory and have the results submitted to the Department;
(12) A pressure and temperature survey, to inspect the mechanical integrity of the well, shall
be performed after the well has been drilled to a total depth, and before commencing the
well cleanout flow or injection test;
(13) During the use of the well for testing, monitoring, production, and/or injection purposes,
the well and site shall be properly maintained until the well is plugged and abandoned in
accordance with the Department's Administrative Rules, Chapter 13-183, HAR;
(14) The permittee shall submit to the Chairperson, the results of any exploration, all drilling
and testing records, down -hole surveys of the well, bottom -hole location, date of
completion, and a survey of the well location and elevation above mean sea level taken by
a Hawaii licensed surveyor within six months after completion of the well;
(15) The completion report, an as -built drawing of the well, and the location of the well
plotted on a U.S.G.S. quad map shall be filed with the Department within six months
after completion of the well;
(16) The bond covering the well shall remain in full force and effect until the well is properly
abandoned and the surface is restored as near as possible to its original condition; and
(17) This permit shall expire 365 days from the date of issuance.
WilliamJ. Adaa, r�son Date of Issuance
Department of Land and Natural Resources
c: Land Board Members
Hawaii County Planning Department
Department of Business, Economic Development and TourisnuStrategic Industries Division
Department of Health/Environmental Health Division
Eric Tanaka, Engineering Division, Hilo
2of4
Begin forwarded message:
From: Hank Banquer <hbanguer@ealthlink.net>
Date: 30 September 2012 2:25:09 PM CDT
To: counciltestimonv@co.hawaii.hi.us
Cc: Steve Burns <dreaminto @ hotmail.com>, Richard Ha
<richard@hamakuasorings.com>, Aziani Ismail <aziani.ismail@gmail.com>
Subject: Bill 292, Draft 1 Testimony
To the County Council
As a member of the Big Island Energy Advisor Commission (EAC) and having spent 35
years in the drilling industry I think this proposal to stop drilling at night is absurd.
Firstly drilling has gone on and continues to go on in densely settled areas with little problem
with noise. Some noise abatement practices can be adopted to reduce the noise but in
general 24 hour drilling is practiced everywhere including in down town Los Angeles where
it has gone on unnoticed for decades and in a state (California) where the environmental
laws are the strictest, infaet are often the benchmark for many practieises and even federal
policies.
There are dangers, major delays and ultimately cost implications in doing this.
You just can not stop drilling, circulating or stop operating realistically for several reasons.
1. Control of the well
2. Temperature build up.
There are 2 temperatures we deal with while drilling:
a. Static temperature
b. Circulating temperature
If the hole is left static for 12 hours then there are many issue that would need to be dealt
with that raise the cost, safety and/or viability of drilling.
3. Time lost and the time to drill the hole would not be 2 times longer but intact maybe 3-4
times longer
4. Open hole (not cased hole) dynamic conditions which can result in stuck pipe, redrilling
EXHIBIT "C"
10/2/2012 4:55 PM
or reaming of the open hole.
5. Having to trip (run the pipe in and out of the well bore) once every 12 hours would leave
little time to drill and just expose the well bore, crew and environment to more risks.
6. Tripping the pipe into the casing where it is protected while drilling is stopped or pulling
the drill pipe out of the hole completely takes time and is particularly noisey as you are
handling the drill pipe in and out of the hole. This can be mitigated with certain pipe
handling equipment but it is still not "quiet'
7. Engine noise can be mitigate many ways from sound proofing to using a diesel electric rig
where the engines run at a constant speed as opposed to changing RPM as the draw works
(large winch) pulls the pipe in or out.
8. The bangs and clangs associated with drilling can be also mitigated with some basic
measures and training of the drill crew.
My question is there a db sound level and duration that has been set that is acceptable for
day and night?
Often the db levels are set at max. exposure time not peaks that might occur in industrial
.situations.
Have we taken sound data and reviewed this 2 ways real time including sound spikes and
average sound level over a period of time ie: 12 hours or whatever is specified and the
defining of "night time" which makes me wonder what you consider night time (sun down to
sun up which changes throughout the year or average bed time to waking time?
I have drilled in the III{ Midlands and we had to keep noise levels to acceptable levels not
for the farmers but not to disturb the cows! The measurement here was whether milk
production decreased if the cows heard noises that were not common, constant or
unexpected. Here simply making sound walls from baled hay stopped the noise and we went
about our business drilling and the cows made milk!
In my view really what this resolution is all about. It is an attempt to shut down the
development of Geothermal making a side attack. Basically the sponsors of this resolution
(bill) want to stop the drilling. They will try any approach or any method to do this.
I think Mr. Yagong and those supporting this resolution (bill) are very uninformed and have
not even done the basic research to establish the noise level or what could be done by the
drilling contractor to reduce any noise. Drilling is just a temporary situation and I do not
know how many private and public construction jobs I have had to put up with over the last
50 plus years hearing jack hammers to banging of beams and diesel engines running
bothered me but we lived through it and enjoyed the benefits these construction projects
brought to its. We need to look at a what sometimes is a little inconvenience and maybe
even discomfort we as an island community need to consider the long term benefits to
ourselves and our fellow islanders.
Really are we going to let a short term inconvenience for some punish the rest of us on the
island? We need to start thinking what is best for our island not a few individuals whose goal
is to stop development of a local resource because they are slightly temporarily
inconvenienced.
1 see the same people trying to stop the development of Geothermal by trying every tactic
they can. Is the council concerned about a small special interest group or the good of our
3 of 4 10/2/2012 4:55 PM
«, -o _,".... V
island and the people who live here.
Should any council member or individual in our community want to contact me regarding
the specifics of drilling or want to take advantage of my 35 years experience in the drilling,
energy exploration and production please feel free to.
Regards
H.Y. Banquet
Hank Banquet
Landline: 808-985-9266
Mobile: 808-990-5419
hbanquer@earthlink net
Hank Banquer
Landline: 808-985-9266
Mobile: 808-990-5419
hbanquer@earthlink.net
��, * * * * . � * �. * � * * * � , � * * , � � *
ConfidentialityWarning,
The information contained in this e-mail is confidential and subject
to certain laws pertaining to the protection of proprietary information.
It is intended only for the use of the individual or entity named above.
If the reader of this message in not the intended roe -piens,
or the authorized agent thereof, the reader is hereby notified
that retention or any dissemination, distribution or copying of this
transmission is strictly prohibited. If you have received this e-mail
in error, please notify us immediately by reply e-mail or by telephone,
and delete all copies of the original message.
Thank you.
I of
10/2/20124:55 PM
-
NEIL ABERCROMBIE
95g4q 9
GOVERrvOR
�„6
h
DEPARTMENT OF BUSINESS,
RICHARD C. LIM
ECONOMIC DEVELOPMENT & TOURISM
MAROALIGEEVANS
aPurvoRecres
'rubesTRATEcic
RIES BNISION
ralavlime (808)M7,380
INousl
2355oNh BeRe.— SlreHLeopapa A Namehameho Bldg 5° Floor Honolulu, Hawaii 96813
Fax(808) 686-2596
Mailing AOdn, P O. Box 2359, Honolulq H—dl9EcrU
Weh 91e' v hawa,govlddedt
October 12, 2012
Honorable Hawaii County Council
c/o Office of the County Clerk
County of Hawaii
25 Aupuni Street
Hilo, Hawaii 96720
Subject: Testimony on County of Hawaii Bill No. 292, Relating to Geothermal Drilling
Dear Hawaii County Council Members,
Thank yon for the opportunity to provide comments on Bill 292, which proposes to
amend Chapter 14, General Welfare, Flawai`i County Code 1983 (2005 Edition, as amended), by
adding new definitions and restricting geothermal drilling operations within one mile or less
from a residence to the operating hours of 7:00 a.m. to 7:00 p.m.
We appreciate the Council's efforts to address noise and light concerns raised by
community members residing near geothermal drilling operations. To protect human health,
every drilling and production operation in Hawaii County must at all times comply with county,
state, and federal laws regulating noise, light, air, water, and other emissions. In addition to these
regulatory protections, common industry measures may be implemented to significantly dampen
the magnitude of noisc and light, such as noise shields around drifting operations and equipment,
noisc mufflers, directional lighting, lighting shields, and/or monitoring near residences.'
According to geothermal industry mid research experts consulted, daily stoppages of
geothermal drilling operations can more than double well drill times as withdrawal of drilling
equipment from the well may be needed to reduce the risk of caving, equipment loss, and fluid
instability. Increased well drill time will extend the project development period and augment
project costs. Given facility development costs are factored into the rate at which a geothermal
facility sells power to the utility, higher project costs will result in higher electricity costs to the
ratepayer.
'A Guide to Geothermal Issrgy and the Environment, p. 41-43, Geothermal Energy Association (2007).
EXHIBIT "D"
Honorable Hawaii County Council
October 12, 2012
Page 2 of 2
Geothermal energy has become an important component of I Iawaii Comrty's energy
portfolio, providing over 232,906 megawatt -homy of electricity in 2011: 21.10% of the
electricity distributed by the Hawaii Electric Light Company (HELCO) that year. This does not
include the recently added 8 megawatts (MW) — bringing the total power plant size to 38 MW —
HELCO is purchasing from Puna Geothermal Venture at rates HELCO estimates will reduce
customer electricity bills through 2025.'
Thank you for the opportunity to comment on Bill 292. Please do not hesitate to contact
Andrea Gill, Geothermal Specialist, from my office if you would like to discuss further. Andrea
can be reached by email at ogiil'mdbdtlutgaii.�o� or phone at 808-933-0312.
Sincerely,
r
Mark B. Glick, Administrator
Hawaii State Energy Office
Ce: Andrea Gilt, Geothermal Specialist, Hawaii State Energy Office
Renee able Porgy Ho S1m,du,d Smms Reporel r rfie year anded Dc ,,&, 31, 2011, Hawaiian Eloetrle Company,
hic. (May 4, 2012)_
3 DeCfS10O and Order No_ 30083, DocketNo_ 2011-0040, Public Utilities CommL3lna of the State of Hawaii (Dec.
30,201 i).
220
PHONE- (510)527-9876
FAX (510)5218164
wKm.geothermex.com
MEMORANDUM
To: Carty Chang Dote: 12 October 2012
Chief Engineer
Department of Land and Natural Resources
State of Hawaii
carty.s.chang@hawaii.gov
cc: Cameron Black
Hawaii State Energy Office
Department of Business, Economic Development & Tourism
State of Hawaii
Cameron.B.Black@dbedt.hawaii.gov
From: James Lovekin and Eduardo Granados
Subject: Potential Effects of Restrictions on Night -Time Drilling of Geothermal Wells
Per your request, Geotherm Ex has investigated questions posed by the Department of
Business, Economic, Development and Tourism (DBEDT) regarding the potential effects of
restrictions on night-time drilling of geothermal wells. We have considered this topic from the
point of view of the additional time and costs that restrictions on night-time drilling would
incur. We have also conducted a brief literature search to locate references related to this
topic.
Geotherm Ex estimates that a well drilled with 12 -hour restrictions at night will take about three
times as long to drill as a well without such restrictions. The reason is that, when drilling
operations are shut down, safety requires that the drilling bit be pulled out of the hole. This
process can take several hours, depending on the depth of the hole. At the start of drilling
operations the next day, the bit must be run back into the hole, which can also take several
hours. The net effect is that the nominal 12 -hour drilling day would get reduced to only about 8
hours of effective drilling. Furthermore, hole stability would likely be jeopardized during the
shut -down period due to the additional exposure time of the formation to drilling mud, which
can result in de -stabilization of the wellbore wall, especially in hydrothermally altered
geothermal zones. Thus, the estimate of 8 hours of effective drilling out ora nominal 12 -hour
drilling day is probably optimistic, since it doesn't account for extra time to recover from hole
stability problems.
The tables and diagrams in Appendix A show a breakdown of drilling time and cost for a typical
Page 1 of 2
EXHIBIT "E"
EX
Company
220
PHONE. (510)52-9876
fAX (51o)527 -e164
www.geothermex. com
6,000 -foot geothermal well drilled in the mainland US, both as it would normally be drilled
(without time restrictions) and for a hypothetical case with 12 -hour drilling restrictions at night.
The ratio of drilling duration for restricted vs unrestricted wells is estimated at three -to -one, for
the reasons discussed above. The illustrative drilling costs for these two cases are not
necessarily indicative of actual drilling costs in Hawaii — actual drilling costs depend on a variety
of factors, including geologic conditions and rig availability— but the cost ratio of the two cases
can be considered representative to a first approximation for a range of drilling conditions,
including those typical of Hawaii. This example shows that a well drilled with 12 -hour night-
time restrictions can be expected to cost roughly twice as much as a well without such
restrictions.
Appendix B includes an Excel worksheet of references Geotherm Ex has located in our brief
literature search. We are unaware of any jurisdiction worldwide that has placed a blanket
prohibition on drilling at night. There are instances of oil fields in urban areas (such as Long
Beach, California) where extensive sound -proofing and camouflage have been employed to
allow drilling and well -maintenance activities to continue in close proximity to human
habitation. In the Long Beach example, there are night-time restrictions on certain drilling -
related activities (such as hammering on pipe or the racking of pipe). However, even at Long
Beach, the regulations allow for "on -bottom' drilling to continue around the clock. Sound-
proofing and light -shielding technologies exist that allow drilling activities to be compatible with
rural and touristic environments as well - for example, in the Lardarello area of Italy (Lazzarotto
and Sabatelli, 2005). The need for such technologies should be assessed based on site-specific
conditions, because noise -proofing and light shielding equipment also add to the cost of
drilling. However, they may be appropriate in some settings in Hawaii, and they would have
much less cost impact than a prohibition on night-time drilling.
Page 2 of 2
A Schlumberger Company
F.UMUNI -,
3260 BLUME DRIVE. SUITE 220
Drilling Costs With and Without Night -Time Restrictions
PHONE. (510) 52]-96]6
FA (510)52]-6156
www.ye,Ah,mex.com
Rig Working Under Unrestricted Time
Cost Curve for Production / Injection Wells
Generic Case - Mainland US
o — - --
1 2
1000 3-
4
2000
E 3000
4000
5000 I�
6000
0
7 8 9
1,000,000 2,000,000 3,000,000 4,000,000
Cost (US$)
Geofhermex, Inc.
2012
Rig Working Under Unrestricted Time
Time Curve for Production / Injection Wells
Generic Case - Mainland US
GeothermEx, Inc.
2012
o—
-- — --
1
1000
3
2000
1
4
3000
L
5
4000
- - - --
1
EXPLAN TA ION
Drill 26 Hole t4',$00 ft
2
Set and Ce`ntgnt��0"
Casing
5000
--
3.
Drill 17-1/Zlioleta
2,OOQft
4.
Set,aod Cgrna-&L13-3/8" Casing
5
Drill V4( y'gJeH`•to 6,000 ft
6.
Set: and Hang Slotted Liner
7,
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Log; and Test W II
8.
Demobilize'`Ri23`,`i'
6000I
s % 8,
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0
5 10 15 20 25 30 35 40 45 50
Time (Days)
GeothermEx, Inc.
2012
Cost Curve for Production / Injection Wells
Drilling Rig Working Under Restricted Time
Generic Case - Mainland US
1
2
1000. '',, 3
4!
2000 —
5
i
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4000 r-- 6
EXPLANATION
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Cost (US$)
Geothermex, Inc.
2012
GeothermEx, Inc.
2012
GeothermEX
3260BLAMEDRIVE SUITE 220
RICHMOND, CALIFORNIA 94806 USA
A Schlumberger Company
PHorve (51052799]6
FN (510) 52]8166
m ,geolhermex.com
APPENDIX B
Preliminary Literature Review of Night -Time Drilling Restrictions
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INDIGENOUS
Consultants, LLC
Testimony of Innovations Development Group & Indigenous Consultants LLC.
Re: County Bill # 292 Restricting Geothermal Drilling - Hearing
October 17 2012 Time: 9:00am
Aloha County Council & Mayor Kenoi,
This testimony is submitted in behalf of the Innovations Development Group (IDG) and Indigenous
Consultants, (IC).
This measure was introduced on October 3d, 2012. Since that time the IDG has forwarded Bill # 292
RE: Geothermal Drilling to several experts who have a background in geothermal & geothermal safety
protocols. Without exception, the responses we have received verify that the restriction being
imposed by the County, limiting geothermal drilling to 12 hours a day violates the safety protocols for
drilling.
Dr. Sadiq 1. Zarrouk, Engineer and Professor at Auckland University responded with the following:
"There is very high risk of well blowout if drilling a deep geothermal well on daily shifts L7,00am to
7:00 11 When drilling stops the well will heat no and can start Flowing qr kicking. To control the
well the drilling engineers need to be able to pump water and/or heavy mud down the well to fill and
cool the well down and to counter the pressure. The drilhne engineers will not be able to do that if
operating on 12 hours shift while having all/most of their machinery shutdowns especially during the
night.
There is also higher risk of the build-up of gases inside the well during shut down which may have to
be removed in a controlled way to secure the well. Running and cementing steel casing of the well
can take more than 12 hours and the drilli,. engineers cannot stop once they start as the cement will
set and we might end up with apoor cementing lob which is critical to the integrity of the well.
Drilling 12 hours a day only will significanntl increase therisk of well collapse during_drilling which
can prevent running the proper casings— causing the well to go out of control.
There. are few documented cases of geothermal wells blowout and many more undocumented. These
blowouts cause maior damage and potential loss of life. 1 have not seen a case of high temperature
geothermal well drilled this way and 1 strongly object to such practice. 1 can email you a movie of one
documented case of geothermal well blowout from New Zealand that kept going for 13 years. The
experience from this well helped set the standards for geothermal well drilling worldwide"
Dr. Sadiq Zarrouk
Senior Lecturer in Geothermal Science
Department of Engineering Science, University of Auckland
)')eOPAC i, 1111( is iu,, I 1 V14"'WIT 1101 V 11 , 1116 1 1 r(II1,'I'll ;1
Testimony was previously submitted to the Council from Hank Banquer of Big Island FAC on
September 30, 2012 that stated....
"From: Hank Banquer <hbanquer@earthlinlc_net>
Date: September 30, 2012 9:25:09 AM HST
To: counciltestimony@co hawaii.lii.us
Cc: Steve Burns <dreaminto@hotmaA.com>
Subject: Bill 292, Draft 1 Testimony
To the County Council
As a member of the Big Island Energy Advisor Commission (EAC) and having spent 35 years in the
drilling industry 1 think this proposal to stop drilling at night is absurd.
Firstly drilling has gone on and continues to go on in densely settled areas with little problem with
noise. Some noise abatement practices can be adopted to reduce the noise but in general 24 hour
drilling is practiced everywhere including in down town Los Angeles where it has gone on unnoticed
for decades and in a state (California) where the environmental laws are the strictest, in fact are often
the benchmark for many practices and even federal policies.
There are dangers, major delays and ultimately cost implications in doing this.
You just cannot stop drilling, circulating or stop operating realistically for several reasons.
1. Control of the well
2. Temperature build up.
There are 2 temperatures we deal with while drilling:
a. Static temperature
b. Circulating temperature
If the hole is left static for 12 hours then there are many issue that would need to be dealt with that
raise the cost, safety and/or viability of drilling.
3. Time lost and the time to drill the hole would not be 2 times longer but in fact maybe 3-4 times
longer
4. Open hole (not cased hole) dynamic conditions, which can result in stuck pipe, redrilling or reaming
of the open hole.
5. Having to trip (run the pipe in and out of the well bore) once every 12 hours would leave little time
to drill and just expose the well bore, crew and environment to more risks.
6. Tripping the pipe into the casing where it is protected while drilling is stopped or pulling the drill
pipe out of the hole completely takes time and is particularly noisy as you are handling the drill pipe in
and out of the hole. This can be mitigated with certain pipe handling equipment but it is still not
.quiet"
7. Engine noise can be mitigate many ways from sound proofing to using a diesel electric rig where the
engines run at a constant speed as opposed to changing RPM as the draw works (large winch) pulls the
pipe in or out.
8. The bangs and clangs associated with drilling can be also mitigated with some basic measures and
training of the drill crew.
.ry0.y(III( hiv11fM I"1II Ogb , qi. 8 , I a I� I
My question is there a db sound level and duration that has been set that is acceptable for day and
night?
Often the db levels are set at max. Exposure time not peaks that might occur in industrial situations.
Have we taken sound data and reviewed this 2 ways real time including sound spikes and average
sound level over a period of time i.e.: 12 hours or whatever is specified and the defining of "night time"
which makes me wonder what you consider night time (sun down to sun up which changes
throughout the year or average bed time to waking time?
1 have drilled in the UK Midlands and we had to keep noise levels to acceptable levels not for the
farmers but not to disturb the cows! The measurement here was whether milk production decreased if
the cows heard noises that were not common, constant or unexpected. Here simply making sound
walls from baled hay stopped the noise and we went about our business drilling and the cows made
milk!
In my view really what this resolution is all about. It is an attempt to shut down the development of
Geothermal making a side attack. Basically the sponsors of this resolution (bill) want to stop the
drilling. They will try any approach or any method to do this.
I think Mr. Yagong and those supporting this resolution (bill) are very uninformed and have not even
done the basic research to establish the noise level or what could be done by the drilling contractor to
reduce any noise. Drilling is just a temporary situation and 1 do not know how many private and public
construction jobs I have had to put up with over the last 50 plus years hearing jack hammers to
banging of beams and diesel engines running bothered me but we lived through it and enjoyed the
benefits these construction projects brought to us. We need to look at what sometimes is a little
inconvenience and maybe even discomfort we as an island community need to consider the long-term
benefits to ourselves and our fellow islanders.
Really are we going to let a short-term inconvenience for some punish the rest of us on the island? We
need to start thinking what is best for our island not a few individuals whose goal is to stop
development of a local resource because they are slightly temporarily inconvenienced.
I see the same people trying to stop the development of Geothermal by trying every tactic they can. Is
the council concerned about a small special interest group or the good of our island and the people
who live here. Should any council member or individual in our community want to contact me
regarding the specifics of drilling or want to take advantage of my 35 years experience in the drilling,
energy exploration and production please feel free to.
Regards
H.Y. Banquer
Hank Banquer
Landline: 808-985-9266
Mobile: 808-990-5419
hbanoger@earthlink.net
9V1)If i Ill i �' ) i+ni III ,0q,3 ( IN, dies n n. fly)5, � ; I .,„ ni Gu:
Legal Notice:
The County Council and Administration are hereby put on notice that the passage of Bill Z92 Re:
Geothermal Drilling will put inlap ce standards that significantly increase the risk of a well blowout,
toxic venting, and bodilyinjury niury to the public and to those persons involved in drilling & related
research. The requirement that drilling be limited to 12 hours a day is a violation of safety protocols
and industry standards for geothermal drilling in the United States and Internationally.
The IDG and IC have obtained independent confirmation of these risks from Dr. Don Thomas and have
previously requested that members of the County Council verify these findings with him. Passage of
Bill 292 places the County at risk of litigation and exposes the County to legal liability.
Sincerely,
Mililani B. Trask
Indigenous Consultants
:)
Roberta Cabral
Innovations Development Group
)19n " ,IC in.n t 11."' II Sb O1 I or 1a 1: 'I,3 ), u i I (i v,
Company
MEMORANDUM
3260 BLUME DRIVE, SUITE 220
PHONE'. (510)5P199)6
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To: Carty Chang Date: 31 October 2012
Chief Engineer
Department of Land and Natural Resources
State of Hawaii
carty.s.chang@hawaii.gov
cc: Cameron Black
Hawaii State Energy Office
Department of Business, Economic Development & Tourism
State of Hawaii
Cameron.B.Black@dbedt.hawaii.gov
From: lames Lovekin and Eduardo Granadas
Subject: Safety Aspects of Restrictions on Night -Time Drilling of Geothermal Wells
Introduction
GeothermEx has prepared this memo to summarize the ways in which restrictions on night-
time geothermal drilling could affect the safety of drilling operations. Fundamentally, shutting
down drilling operations at night would cause repeated interruptions in the circulation of
drilling fluids, and it would extend the period of time in which the wellbore is exposed to drilling
fluids without having casing installed. There are three consequences of this that could create
adverse conditions for safety: (1) thermal cycling of the well casing; (2) a build-up of gas
pressures in the wellhead; and (3) loss of integrity of the wellbore wall. These three topics will
be discussed in greater detail below.
Thermal Cycling
As a geothermal well is drilled, a sequence of pipes (casing strings) are cemented at successively
greater depths to help keep the shallow underground aquifers from being contaminated, seal
up the upper parts of the well and protect the formation from pressures that could lead to
fracturing. By the time a well is completed, there are several concentric strings of casing at the
surface, with cement in between each string and in the annulus between the outer casing and
the formation. Each casing string is susceptible to thermal expansion when it gets hot, and
thermal contraction as it cools. The cement around the pipes helps control this expansion and
contraction by binding the concentric casing strings to each other and to the surrounding
formation. The cement also prevents the unwanted migration of fluids from the geothermal
Page t of 3
EXHIBIT "G"
SUITE 220
PHONE'.(510)52TW76
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reservoir to shallower formations through annular spaces outside the casing strings. In the
normal operation of a geothermal well, casings are exposed to periodic cycles of heating and
cooling (for example, when a production well is put on line and when it is shut in). These cycles
are relatively infrequent, and well -cemented casing strings are designed to accommodate this.
However, repeated thermal cycling of a well during drilling can lead to cracking of the cement
sheaths around the casing strings. This renders the cement less effective in controlling
expansion and contraction. It can also make the cement sheaths prone to leakage of
geothermal fluids to zones nearer the surface. Once pathways for fluid flow through the
broken cement sheath outside the casing strings are established, they can become
progressively worse over time. This can lead to contamination of shallow groundwater
aquifers, and in extreme cases, can lead to discharges of geothermal fluids to the atmosphere
around the wellhead and from areas at some distance from the well. The odds of this
happening are difficult to predict, and the incidence of such leakages is low - in large part
because geothermal drilling operations put a premium on keeping circulation going (even when
the bits are not penetrating new formation), in order to keep thermal cycling to a minimum.
However, an enforced regimen of shutting down drilling operations at night would increase the
frequency of thermal cycling and correspondingly increase the safety risk of groundwater
contamination and blow -outs.
Build-up of Gas Pressures
In normal drilling operations, gases that are present in the formation (either in solution or as
gas pockets) will typically enter the wellbore in small amounts and be continuously circulated
out of the hole by the drilling fluids. Once circulation stops for a period of several hours, these
gases can migrate to the top of the wellbore and accumulate in the wellhead. Because they
originate in high-pressure zones at depth, these gases actually remain at high pressures as they
rise in the well, resulting in an increase in pressure at the wellhead. The higher wellhead
pressure, in combination with the hydrostatic pressure of drilling fluids and natural liquid -phase
fluids in the well, can exert pressures at the bottom -most casing string that are much higher
than just the weight of the liquid -phase column alone. This can lead to fracturing of the
formation and flow of drilling fluids or geothermal fluids into unintended zones. Depending on
natural zones of weakness, these fluids can break through to shallower intervals, and again
there is some risk of a breach to the surface, even at some distance from the wellbore. This is a
separate phenomenon from leakages induced by thermal cycling, but the safety consequences
of groundwater contamination and well blowout are much the same.
Loss of Integrity of Wellbore Wall
Drilling fluids (often referred to as drilling mud) are designed to coat the wall of freshly drilled
hole with a "mud -cake' that seals off small fractures and pore spaces to prevent seepage of
drilling fluids into the formation. The formation typically contains certain amounts of clay
Page 2 of 3
Geoth erm Ex aON BLAME DRIVE SUITE ago
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minerals (all the more common in rocks that have been altered by high-temperature
geothermal fluids), that can swell on exposure to waters of different chemistry than natural
formation fluids. It is commonly recognized that the longer the formation is exposed to drilling
fluids (even in conditions where circulation is maintained), the more susceptible the formation
is to sloughing. To the extent that night-time drilling restrictions increase the overall duration
of drilling, this loss of formation integrity can lead to a higher incidence of getting drilling
tubulars stuck in the hole. This not only increases the duration and cost of the drilling
operation, it also increases the likelihood that some form of uncontrolled flow to the surface
will occur, due to the intense use of pressure containment equipment such as blow-out
preventers ("BOPs") at the wellhead. The loss of wellbore integrity at depth also contributes in
some degree to the possibility that geothermal fluids will channel and break through to
shallower horizons, thereby compounding the risks of groundwater contamination and
blowouts from thermal cycling and gas -pressure build-up.
Page 3 of 3
GEA
GEOTHERMAL ENERGY ASSOCIATION
209 Pennsylvania Avenue SE, Washington, D.C. 20003 U.S.A.
Phone: (202) 4545261 Fax'. (202) 454-5265 Web Site: oeo-enerev.ore
November 5, 2012
Hawaii County Council
c/o Office of the County Clerk
County of Hawaii
25 Aupuni St.
Hilo, HI 96720
Re: Opposition to County of Hawaii Bill No. 292, Relating to Geothermal Drilling
Dear Hawaii County Council Members:
On behalf of the member companies of the Geothermal Energy Association, I wish to express
serious concerns about Hawaii Bill 292, which was introduced by Council Chairman Dominic
Yagong. This bill would limit geothermal drilling conducted within a mile of any residence to
between 7 a.m. and 7 p.m. We believe that this measure is overly broad, will increase the cast
and risks associated with geothermal drilling, and will set -back efforts to expand renewable
power production in Hawaii.
Expanding geothermal power should be seen as an important part of Hawaii's climate change
action plan, allowing for reliable electricity production with a minimum of global warming
emissions. Achieving significant emissions reductions in the slate should be viewed as vital
given the potential for devastating effects on coastal communities and forest ecosystems from
climactic changes which scientist project.
Based upon the testimony submitted by GeothermEx and others, Hawaii bill 292 would appear to
be moving in the opposition direction and would discourage geothermal development. They
report that it could potentially triple the costs of geothermal drilling and increase risks to both
drillers and the environment from having to repeatedly shut -down and re -start drilling
operations. While the negative impacts of noise and light may need to be addressed and
mitigated, other measures appear to be the available which do not impose blanket costs and risks
on the industry.
We urge your opposition to Bill No. 292
Sincerely,
Karl Gawell
Executive Director
EXHIBIT "H"
Geothermal
November 6, 2012
Hawaii County Council
c/o Office of the County Clerk
County of Hawaii
25 Aupuni Street
Hilo, Hawaii 96720
Re: Opposition to County of Hawaii Bill No. 292, Geothermal Drilling Restrictions
Dear Hawaii County Council Members:
The Geothermal Resources Council, as a representative of numerous geothermal
educational institutions and development companies hereby expresses its concerns about
Bill No. 292. The drilling restrictions in this Bill would inhibit and could ultimately
prohibit the further development of geothermal on the Big Island.
Developing geothermal power will help Hawaii reach its goals of energy independence
and minimizing global warming emissions. Indigenous geothermal development and
operation will help Hawaii reach these goals. Local jobs will be created to develop,
construct and operate these geothermal plants.
We have reviewed the testimony of one of our member companies, GeothermEx. The
Geothermal Resource Council agrees with this expert's conclusion that project risk and
cost will be dramatically increased it the Bill is approved.
Noise issues have been addressed for ever 30 years at other drill sites all over the world.
Drilling has always been allowed without 12 hour daily curtailments. Wejoin with the
opposition to this Bill.
Please oppose Bill No 292
Best Regards.
Steve Ponder
Interim Executive Director
P.O. Box 1350, Davis, California 95617-1350 • 2001 Second Street, Suite 5, Davis, California 95616
Phone (530) 758-2360 • Fax (530) 758-2839 • grc rDrgeothern al.org
EXHIBIT "I"
Hawaii Island Economic Development Board
0"I S L A N D OF OPPORTUNITY
08 November 2012
Via Electronic Mail: counciltestimonv@co. hawaii.hrus
Hawaii County Council
c/o Office of the County Clerk
County of Hawaii
25 Aupuni Street,
Hilo, Hawaii 96720
Re: County of Hawaii Bill No. 292 — Relating to Geothermal Drilling
Aloha Chair Yagong and Council Members
Mahalo for allowing me to submit this statement on behalf of Hawaii Island Economic
Development Board (HIEDB), a private non-profit economic development organization
incorporated in 1984. HIEDB's mission includes providing and promoting private sector support
and expertise for balanced growth in Hawaii County.
With this mission in mind, HIEDB strongly urges the Hawaii County Council to review the matter
of geothermal drilling comprehensively and consider all aspects including inadvertent
consequences, precedents and negative impacts that must be considered with respect to Bill
292 and the proposed curtailing of drilling hours.
Residents of Hawaii Island are burdened by onerous rates for electricity while simultaneously
blessed with an abundant renewable and firm energy resource through geothermal power.
To curtail drilling as proposed by Bill 292 is in direct contradiction to industry standards, drilling
practice and safety protocols. Such curtailment would also likely result in both delays and
increased costs which would have direct negative impact on Hawaii County residents and
efforts to reduce dependence on imported fossil fuels.
Numerous impact assessments (environmental, safety, cultural, etc.) must be conducted and
appropriate mitigation measures must be identified prior to securing the necessary permits and
approvals for geothermal exploration and/or operation. The applicant must also ensure
compliance with rules, regulations and best industry standards and practices.
Hawaii Innovation Center at Hilo • 117 Keawe street, suite 107 • Hilo, HI 96720-2811
Ph 80131 93S-2 180 Fax 180819352107 hieGb@hie Jb,org wwwtLeao�rn
EXHIBIT "J"
In conducting our research on this matter, we consulted representatives of the geothermal; oil
and gas; and water development industries and have learned of a myriad of concerns that arise
with interruptions of drilling operations for extended periods of time. Concerns identified
include and are not limited to, safety (for both workers and general public), higher costs for
construction, unnecessary delays in construction that lead to increased costs of operations,
negative environmental impacts, contamination of groundwater, and longer-term economic
impact such as the delay in transitioning Hawaii County from high cost, imported fossil fuels to
locally sourced renewable energy.
Noise has been identified as the reason for Bill 292. Our research reveals that there are
numerous sound abatement equipment and techniques that can be implemented to reduce the
noise resulting from drilling. Drilling industry representatives concur that absent such sound
abatement, acoustics levels typically range from 90 -115 decibels at the source of drilling then
taper off with distance (e.g. 55 decibels at 3,500 feet). Comparatively the acoustic level of
coqui frogs is recorded at 108 decibels while a food blender and chainsaw at 3 feet record at 90
and 117 decibels respectively. In consideration of such noise comparisons and the potential for
egregious safety and economic risks; the proposed radical deviation from standard drilling
operations and protocols is not warranted.
We humbly request that a more reasonable and less disconcerting course of action would be a
review of applicable impacts assessments; identification and implementation of appropriate
mitigation.
In closing, we oppose Hawaii County Bill 292 and appreciate this opportunity to submit our
comments.
Sincerely,
�A-r
Jacqui L. Hoover
Executive Director & COO
Hawaii Island Economic Development Board
Hawaii Innovation Centel at Hilo • I 17 Keawe Street Suite 107 • Hilo, HI 96720.281 I
Ph 18081 935 2 180 Fax 18081 9352187 hledb@hiedb.org ti db
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STATE OF HAWAH
DEPARTMENT OF LAND AND NATURAL RESOURCES
POST OFFICE BOX 621
HONOLULU, HAWAII 96909
NOV 8 2012
Hawaii County Council
c/o Office of the County Clerk
25 Aupuni Street
Hilo, Hawaii 96720
Dear Chair Yagong and Council Members:
W'1LLI�J.�IL1M
,mmm �` rmE �ivua� rowvrt
County of Hawaii Bill No. 292 — Relating to Geothermal Drilling
The Department of Land and Natural Resources (DLNR) is tasked with the management of geothermal
resources and its development to ensure its continued viability for future generations. Geothermal
resources development in the State of Hawaii is a priority and has contributed to energy diversification.
Bill No. 292 proposes to limit the drilling of geothermal wells that occur within a mile of a residence to
between the hours of 7 a.m. and 7 p.m. DLNR opposes Bill No. 292 as restrictions on night time drilling
could increase the risk for groundwater contamination and blow -outs. Repeated interruption of drilling
operations for extended periods of time is unprecedented in the industry and could contribute to
unintended consequences that could impact the public safety and our geothermal and water resources.
We wish to share with you information prepared by GeothennEx, DLNR's independent geothermal
consultant The first memo identifies potential public safety impacts that may occur if geothermal well
drilling was restricted from the industry standard 24/7 operations. The second memo addresses time and
cost impacts that drilling restrictions could also incite.
We recognize that noise may be construed as a public nuisance and one of the main reasons for the
Hawaii County Council to consider this measure. If noise is the primary concern, we recommend that
additional mitigative measures be implemented in lieu of restricting drilling operations at night. We
believe this would be a reasonable balance that addresses the concerns of those living in close proximity,
while not increasing the risk to public safety or our resources.
Thank you for the opportunity to comment.
Sincerely,
WILLIAM J. AILA, JR.
Chairperson
Attachments
c: DBEDT EXHIBIT "K"
William P. Kenoi""'••
�.'-
BJ Leithead Todd
Mayor
-'
D-
1 -Margaret K. Masunaga
iiI•`.
DeWN
West Hawaii Office
E., Hawaii Ode¢
74-5094 Me Keohokalole Hwy101
Paua Strc soile 3
Kv1ua-Kona, Hawai i 96740
County of Hawaii
Hilo, Hawaii 96720
Phone (808) 3234970
Phone (808) 9619288
F.(908)327-3563
PLANNING DEPARTMENT
F.(808)961-8742
May 31, 2013
Thomas L. H. Yeh
Law Offices of Yeh & Moore
85 W. Lanikaula Street
Hilo, HI 96720
SUBJECT: Geothermal Resource Permit (GRP2)
Puna Geothermal Venture (PGV)
Ordinance No. 12-151 Bill 292)
Dear Mr. Yeh:
Receipt of your letter dated December 28, 2012 concerning the above is acknowledged. You have
asked us to review your request for interpretation as to the effect which Ordinance No. 12-151 has on
GRP2, issued to PGV on February 6, 2001.
I have reviewed the subject ordinance and the terms of GRP2, as well as the record relating to the
intent of the Council when it adopted Bill 292 and opinions on the matter from the Corporation
Counsel. Based upon this review, it is determined that Ordinance No.12-151 does not prohibit or
prevent PGV from conducting geothermal resource exploration drilling or geothermal production
drilling operations between the hours of 7:00 p.m. and 7:00 a.m. within a mile of the nearest residence,
so long as such activities are conducted pursuant to the terms and conditions of GRP2.
Please let me know if you have further questions regarding the above. Thank you for your patience in
this matter.
Sincerely,
BJ LEITHEAD TODD
Planning Director
IUN - 4 2013
coholannioe4co co HmvoiiCounty ,.,Equal Oppormnlry Provider and Employer Ip 'Rp". o m h, u'
EXHIBIT "L"
Well Designation:
Location
Well Coordinates
Geothermal Mining Lease
Leased to:
Subleased to:
Operator:
Ground Elevation:
Projected Depth:
Kapoho State 16 (KS -16)
TMK 1-04-01:19 (Wellpad A)
1540 53' 23.9" W
19° 28' 39" N
R-2
Kapoho Land Partnership
Puna Geothermal Venture
Puna Geothermal Venture
610 feet AMSL
6,120 feet
Approval is granted in accordance with the Department of Land and Natural Resources'
(Department's) Administrative Rules, Chapter 13-183, Hawaii Administrative Rules (HAR), and
subject to the following conditions:
(1) All work shall be performed in accordance with the permission and terms of the occupiers of
the land, the drilling and completion program submitted with your application, the
Department's Administrative Rules Chapter 13-183, HAR, and all other applicable Federal,
State, and County laws, ordinances or rules;
(2) The permittee, its successors and assigns, shall inderrmify, defend, and hold the State of
Hawaii harmless from and against any loss, liability, claim or demand for property damage,
personal injury and death arising from any act or omission of the applicant, assigns, officers,
employees, contractors and agents under this permit or relating to or connected with the
granting of this pennit;
EXHIBIT "M"
WILkIAm 1. R
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STATE OF HAWAII
rartame^^° DEPARTMENT OF LAND AND NATURAL RESOURCES
K.Ilool.we [wx¢spu
POST OFFICE BOX 621
HONOLULU, HAWAII 96809
DEC 16 2014
Geothermal Well Permit
Kapoho State 16
Kapoho, Puna, Hawaii
To: Puna Geothermal Venture
P.O. Box 30
Pahoa, Hawaii 96778-0030
Your application dated November 12, 2014, for a permit to drill a geothermal well covered under
the State of Hawaii, Geothermal Resource Mining Lease No. R-2 is approved.
Well Designation:
Location
Well Coordinates
Geothermal Mining Lease
Leased to:
Subleased to:
Operator:
Ground Elevation:
Projected Depth:
Kapoho State 16 (KS -16)
TMK 1-04-01:19 (Wellpad A)
1540 53' 23.9" W
19° 28' 39" N
R-2
Kapoho Land Partnership
Puna Geothermal Venture
Puna Geothermal Venture
610 feet AMSL
6,120 feet
Approval is granted in accordance with the Department of Land and Natural Resources'
(Department's) Administrative Rules, Chapter 13-183, Hawaii Administrative Rules (HAR), and
subject to the following conditions:
(1) All work shall be performed in accordance with the permission and terms of the occupiers of
the land, the drilling and completion program submitted with your application, the
Department's Administrative Rules Chapter 13-183, HAR, and all other applicable Federal,
State, and County laws, ordinances or rules;
(2) The permittee, its successors and assigns, shall inderrmify, defend, and hold the State of
Hawaii harmless from and against any loss, liability, claim or demand for property damage,
personal injury and death arising from any act or omission of the applicant, assigns, officers,
employees, contractors and agents under this permit or relating to or connected with the
granting of this pennit;
EXHIBIT "M"
Geothermal Well Permit
Kapoho State 16 (KS -16)
Page 2 of 3
(3) The permittee shall observe and comply with all valid requirements of County, State and
Federal authorities and regulations to the land and permittee's operations including but not
limited to, all water and air pollution control laws and those relating to the environment;
(4) The well and bottom -hole location shall be located more than 100 feet from the outer
boundary of the parcel of land on which the well is situated, or more than 100 feet from a
public road, street or highway dedicated prior to the commencement of drilling, unless
modified by the Chairperson upon request;
(5) "the permittee shall notify the Department, in writing, of the start date of drilling operations;
(6) In the interest for the Protection of the Environment, Workers' Safety, Public Safety, and the
Protection of the Resource, during operations involving the drilling, completion, and work -
over of any geothermal well, there shall be highly experienced and properly trained (i.e.
BOP Certified) representatives on the project and during operations for the prevention of
any blow-out and or any flow event. Proper training would involve the accepted practices
for the prevention of any blow -outs and also remedies for any flow event caused by a blow-
out of any well. The training would also be the knowledge of the functions of the Blow -Out
Prevention Equipment and the necessary utilization of the equipment in case of a blow-out
or flow event.
(7) All Blow -Out Prevention Equipment (BOPE) shall be pressure tested before commencing
any other operations on the well. The minimum test pressures shall be approximately on -
third the casing internal yield pressure rating, providing the test pressure shall not be less
than 600 psig or greater than 2,500 psig, and shall be applied for a period of thirty minutes.
The applicant shall notify the Department at least 24 hours in advance. The results of the
pressure tests shall be reported on forms provided by the Department;
(8) A real time monitoring device shall be installed for the drillers and a pit alarm system shall
be included with this monitoring device. All toolpushers, drillers, and derrickmen shall be
properly trained in the use of the monitoring equipment;
(9) If changes to the proposed drilling program are contemplated, the pemrittee shall obtain the
Chairperson's approval prior to implementing such changes;
(10) During the use of the well for testing, monitoring, production, and/or injection purposes, the
well and site shall be properly maintained until the well is plugged and abandoned in
accordance with the Department's Administrative Rules, Chapter 13-183, HAR;
(11) The permittee shall submit to the Chairperson, the results of any exploration, all drilling and
testing records, down -hole surveys of the well, bottom -hole location, date of completion,
Geothermal Well Permit
Kapoho State 16 (KS -16)
Page 3 of 3
and a survey of the well location and elevation above mean sea level taken by a Hawaii
Licensed surveyor within six months after completion of the well;
(12) The completion report, an as -built drawing of the well, and the location of the well plotted
on a USGS quad map shall be filed with the Department within six months after completion
of the well;
(13) The bond covering the well shall remain in full force and effect until the well is properly
abandoned and the surface is restored as near as possible to its original condition; and
(14) This permit shall expire 365 days from the date of issuance.
i William J. Ails, Jc, aupperson Date of Issuance
Department of Land and Natural Resources
Land Board Member
Hawaii County Planning Department
Department of Business, Economic Development and Tourism/Strategic Industries Division
Department of Health/Environmental Health Division
Eric Tanaka, Engineering Division, Hila