.' ~. ". -' ~..,... ,....History 1--1Revised 9/)...4188

GEOTHERMAL DEVELOPMENT ACTIVITIES

HISTORICAL BACKGROUND

1.

2.

3.

4.

HGP-A well is completed, July 1976.

Administrative Rules, Chapter 13-183 (Regulation 8) forthe Leasing and Drilling of Geothermal Resources isadopted, May 1978.

Administrative Rules, Chapter 13-184 for the Designationand Regulation of Geothermal Resource Subzones is adopted,August 1984.

F~geothermal resource mining leases issued to thef"OTIOW ing :

a.

1

· .

5. Four designated Geothermal Resource Subzones:

a. Kapoho GRS: 5,756 acres,Designated 10/16/84

(excluding GRML R-2 and R-3.)(For R-2 and R-3, GRS areais valid only for theduration of the leases.)

Landownership:state Land (3.36 acs) Private (5,752.64 acs)zoning: Split (Cons/Ag)

b. Kamaili GRS: 5,531 acres.Landownership: Private

Designated 10/16/84zoning: Ag

c.

d.

Kilauea Middle East RiftDesignated 12/20/85Landownership:State Land (164 acs)zoning: Ag (618 acs)

Haleakala Southwest RiftDesignated 10/16/84Landownership:State Land (535 acs)Zoning: Split (Cons/Ag)

GRS: 9,014 acres

Private (8,850 acs)Conservation (8,396 acs)

GRS: 4,108 acres (Maui).

Private (3,573 acs)

e. proposed Kilauea Southwest Rift GRS: 8,090 acsDesignation: PendingState Land (4,928 acs) Private (3,162 acs)Zoning: Ag

Total acreage within subzones (including R-2 and R-3):24,409 acres + 1,593 acres = approx. 26,000 acres.

6. Eight wells (including one side-track well) drilled in thePuna District:

Successful wells (4)a. HGP-A (1976) by NELH.b. Kapoho state 1 (1981) by PGV.c. Kapoho State 2 (1982) by PGV.d. Kapoho state l-A (1985) by PGV.

Unsuccessful wells (4)a. Ashida 1 (1980) by Barnwell.b. Lanipuna 1 (1981) by Barnwell.c. Lanipuna l/Sidetrack (1983) by Barnwell.d. Lanipuna 6 (1984) by Barnwell.

7. Two wells drilled at Puu Waawaa (1978) by Puu Waawaa SteamCompany. Both wells unsuccessful.

CURRENT GEOTHERMAL DEVELOPMENT ACTIVITIES

1. Currently, the HGP-A Well/Power Plant Facility in theKapoho GRS is producing about 2.8 megawatts of electricity.

2. currently, only, three geothermal developers:

Ormat (Puna Geothermal Venture)

a. Operator for leases R-2 and R-4 in the Kapoho GRS andR-l in the Kamaili GRS.

b. Has drilled three successful wells: Kapoho State 1,Kapoho State 2, and Kapoho Stata I-A. Currently,KS-l and KS-2 are temporarily plugged, KS-IA has beenpermitted (issued Thermal Power Co.) to betemporarily plugged.

c. Has applied for an extension of permit (previouslyissued to Thermal Power Co.) to re-drill Kapoho State2 (directional drilling). Application under review.

d. Operations currently in transition due to recent saleof Thermal Power Co. to Ormat Energy.

1r~~id-pacific Geothermal Venture

a. Operator for State mlnlng lease R-5 (CampbellEstate) in the Kilauea Middle East Rift GRS.

b. Intends to submit Plan of Operations to DLNR pursuantto lease and CDUA requirements.

c. Plans to begin exploratory drilling program pendingoutcome of legal suit filed against the land exchangebetween the state/Campbell Estate.

Barnwell Geothermal Corporation

a. Operator of State lease R-3 in the Kapoho GRS.

b. unsuccessfully drilled two wells (plus onedirectional well) in the Kapoho GRS and one well(Ashida 1) in the Kamaili GRS.

c. All operations and plans for further explorationcurrently suspended.

REGULATORY ACTIVITIES

1. DLNR to amend Administrative Rules, Chapter 13-184 on theDesignation and Regulation of Geothermal Resource Subzonesin accordance with statutory amendments.

2. DLNR to amend Administrative Rules, Chapter 13-183 on theLeasing and Drilling of Geothermal Resources pursuant tostatutory amendments.

3.

4

5.

Contested case hearing on the proposed Kilauea SouthwestRift GRS is currently pending.

Landowner initiated subzone designation to include 40acres adjacent to the Kapoho GRS currently under review.Application for subzoning will require public hearing andaction by BLNR.

0titIt'. l

DLNR PERMITTING REQUIREMENTS

1. Geothermal Resource Subzone Designation:

(BLNR approval required; 180 days processing time forlandowner initiated application for subzone designation;Public Hearing required; No contested case hearing; directappeal to the Hawaii Supreme Court; and No EIS required.)

2. Conservation District Use Application (CDUA) within a GRS:

(BLNR approval required; 180 days processing time; PublicHearing required; No contested case hearing - mediationupon request with direct appeal to the Hawaii supremeCourt; and EIS required.)

3. Geothermal Exploration Permit

(BLNR approval required; 60 days processing time; Term ofPermit - 1 year; No Public Hearing; No EIS; and Nocontested case hearing.)

4. Geothermal Well Drilling Permit

(Chairperson approval; 60 days processing time; Term ofPermit - 1 year; No Public Hearing; No EIS; and Nocontested case hearing.)

5. Geothermal Well Modification Permit (for injectionpurposes)

(Chairperson approval for modification only; No maximumprocessing time stated; No duration or term of permitspecified in rules; No Public Hearing; No EIS; and Nocontested case hearing.)

6. Geothermal Well Abandonment Permit

(Chairperson approval required; No maximum processing timespecified in rules; No Public Hearing; No EIS; and Nocontested case hearing.)

7. Geothermal Resource Mining Lease

(Board approval required: State land requires pUblicauction on a competitive bid basis, Reserved land may begranted a lease without public auction by way of 2/3approval of the Board; Estimated 6 months to 1 yearprocessing time; Term of lease - 65 years; Board may holdPublic Hearing if leasing state land; No EIS; No contestedcase hearing.)

8. Geothermal Plan of Operations

(Board approval required; 60 days processing time; NoPublic Hearing; No EIS; and No contested case hearing.)

GEOTHERMAL ZONING AND PERMIT REQUIREMENTS

Department of Land and Natural ResourcesDivision of Water and Land Development

State of Hawaii

Zoning:

Activities Time

1. Geothermal Subzoning(QQVele)5C1 application)~d6l#1feY"

Permits:

1. Geothermal ExplorationPermit

2. Geothermal WellDrilling Permit

3. Geothermal WellModification Permit

4. Geothermal WellAbandonment Permit

Review. Public Hearingand Decision(180 days from acceptance)

Approval(60 days from receipt)

Approval(60 days from receipt)

Approval(60 days from receipt)

Approval(no time limit specified)

Judicial Appeals. if any

GROUND WATER WELL DRILLING PERMIT REQUIREMENTS

Permits:

1. Well Drilling Permit"

2. Water Use Permit·

Approval

Approval

*If geothermal development requires ground water development.

(3/88)

3l82b

AGENDA

FOR THE MEETING OF THEINTERAGENCY COMMITTEE ON GEOTHERMAL/CABLE PERMITTING

DATE:TIME:PLACE:

September 29, 198810:00 A.M.KALANIMOKU BUILDINGROOM 132, BOARD ROOM1151 PUNCHBOWL STREETHONOLULU, HAWAII

1 .

2.

3 •

Introduction of Committee Members

Discussion of Act 301, SLH 1988:

a.Statutory requirements

b.Identification of the role and function ofthe Interagency Committee and its members

c.Identification of all permit review andapproval deadlines

d.Identification of overlapping/duplicativereview and permitting by agencies

e.Development of a conflict resolution processbetween agencies

f.Development of an interagency program tomonitor the processing of permits anddevelopment activities

g.Formulation of rules to implement Act 301

h.Recommendations if any, for amending Act 301during the next legislative session

Other Business

speech

PENDING GEOTHERMAL ACTIVITIES (5/18/88)

l)THE DIVISION CONTINUES TO ADMINISTER THE DESIGNATION ANDREGULATION OF GEOTHERMAL RESOURCE SUBZONES AND THE LEASING ANDDRILLING OF GEOTHERMAL RESOURCES.

! fjftff. i (is-~2)THE DIVISION CURRENTLY~CONDUCTS QUARTERLY SITE INSPECTIONS OF ALLGEOTHERMAL WELLS: SWELLS

LANIPUNA NO(l /BARNWELL/ 8389'/686 TEMP/SUSPENDEDLANIPUNA NO.1 /SIDETRACK/ 6271'/429 TEMP/SUSPENDEDLANIPUNA NO.6 /BARNWELL/ 4956'/335 TEMP/SUSPENDEDASHIDA NO.1 /BARNWELL/ 8300'/550 TEMP/SUSPENDEDKAPOHO NO.1 /PGV/ 7290'/642 TEMP/SUSPENDEDKAPOHO NO.2 /PGV/ 8005'/660 TEMP/SUSPENDEDKAPOHO NO.1A /PGV/ 6505'/654 TEMP/SUSPENDEDHGP-A /NELH /6455'/676 TEMP/OPERATIONAL/APPROX. 2.1 MW

3)CURRENT PERMITS ISSUED BY THE BOARD INCLUDE:WELL MODIFICATION PERMIT FOR KS-2 TO RE-DRILL A DIRECTIONALHOLE FROM THE SAME WELL SITE. PLANS ARE TO DRILL OUT THEEXISTING CEMENT PLUG BELOW 2300' AND KICK OUT A NEWDIRECTIONAL WELL FROM 4200' TO APPROX. 7670' DEPTH. (ISSUED7-10-87)

WELL MOD. PERMIT FOR KS-IA TO INSTALL TEMPORARY CEMENT PLUG INWELL BORE CASING AT APPROX. 3000' DEPTH. (ISSUED 3-1-88)

~'"(OPTIONAL COMMENT) THE PRO D PIPELINE PROJECT BETWEEN THERMALPOWER CO. AND NELH TO CONNECT KS-IA TO THE HGP-A POWER PLANTFACILITY WAS APPROVED, BUT THE PRO ~ IS CURRENTLY SUSPENDEDPENDING FURTHE~ NOTICE FROM THE DEVELOP~AMENDMENT TO PLAN OF OPSISSUED 4-25-~, 4 YR DURATION.)

'814)PURSUANT TO ACTS 290, 124, 167, SLH 1986 AND ACTS 372, 378, SLH1987, THE DIV. IS IN THE PROCESS OF AMENDING THE DEPT. 's ADMIN.RULES CHAP. 13-184, ON THE DESIG. AND REG. OF GEOTHERMAL RES.SUBZONES.

DEFINITION OF GEOTH. DEV. ACTIVITIES EXPANDED/ALLOWS DIRECTUSE APPLICATIONS OUTSIDE GRS.NOTIFICATION OF LANDOWNERS W/IN 1000' OF BOUNDARY.SETS STNDS FOR THE BOARD TO REVIEW APPL. W/IN CDUA AREA.ELIMINATES CONTESTED CASE HEARINGS FOR THE DESIG. AND REG. OFGRS AND PROVIDES FOR DIRECT APPEAL TO THE SUPREME CT.

5)IN ADDITION, PURSUANT TO S.B. NO.2750 PASSED DURING THE 1988SESSION, THE DIV. WILL BE PREPARING DRAFT AMENDMENTS TO THE DEPT.'SCHAP.13-I83 ON THE LEASING AND DRILLING OF GEOTH. RES.

6)LASTLY, A REQUEST FOR A CONTESTED CASE HEARING ON THE PROPOSEDKILAUEA SOUTHWEST RIFT GRS IS STILL PENDING AND AWAITS A DECISIONWHETHER OR NOT TO GRANT A C/C HEARING BASED ON THE PETIONER'SSTANDING AND RECENT LEGISLATION THAT ELIMINATES THE PROVISION FORC/C HEARINGS ON GRS MATTERS. (REQUESTED 9-26-85)

Conservation Lands

GEOTHERMAL PEHMITS & APPROVALS

GEOTHERMAL

Ag! Rural Urban Lands

Conservntion District Use Permit(Deportment of Land & Natural Hes.)

• Public hearing required• [ContpstQd ease Rearing tlfJ9R

1'8"llieSn• EIS may 6'e required

Geothermal Hesource Permit(Hawaii County Planning Dept)

• Public hearing required• [!Jol'\tsatea eRse fieariflg

\:lfl9A P8EtyesI'J• Planning Commission Rule

12 ~eiHg dlafte(fJ c,dorh~

-----I----JDLNH Permits and Approvals

• Geothermal Resource Mining LeaseElS may be requiredPlan of operation required

• Geothermal Well Drilling Permit

• Modification or Abandonment Permit

DOH Permits

• Permits to operate (air quality)Public hearing may be held

• Underground injection Control PermitPublic hearing may be held

County Permits

• Building

• Electrical• Plumbing• Grading• Grubbing , ,• Stockpiling

, .

GEOTHERMAL ZONING AND PERMIT REQUIREMENTS

Department of Land and Natural ResourcesDivision of Water and Land Development

State of Hawaii

Zoning:

Activities Time

1. Geothermal Subzoning(developer application)

Permits:

1. Geothermal ExplorationPermit

2. Geothermal WellDrilling Permit

3. Geothermal WellModification Permit

4. Geothermal WellAbandonment Permit

Review. Public Hearingand Decision(180 days from acceptance)

Approval

Approval

Approval

Approval

Judicial Appeals. if any(? days)

GROUND WATER WELL DRILLING PERMIT REQUIREMENTS

Permits:

1. Well Drilling Permit*

2. Water Use Permit*

Approval(2 weeks from receipt)

Approval(180 days from receipt)

*If geothermal development requires ground water development.

(3/88)

CWliliIIW{)LQfI'[ 'iilWGEQtliIERMAL ACTIVITIES

Department of Land and Natural Resources

CDUA by Campbell Estate (HA 3/2/82-1463) to conductgeothermal activities at Kahaualea, Puna, Hawaii

May 20, 1982 Public hearing on CDUA; Hilo High School Cafe.

October 5, 1982 Contested case hearing on CDUA

" 25-29 1982 " " " "Nov. 15-19, 1982 " " " "Dec. 7-10, 1982 " " " "Feb. 10, 1983 Final arguments

Feb. 25, 1983 BLNR issues Findings of Fact,Conclusions of Law, andDecision and Order

Mar. - Apr. 1984 Informational meeting--receive testimony ongeologic hazards at Kahaualea

Subzone Designation

PUBLIC INFORMATIONAL MEETING ON SUBZONE DESIGNATION:

May 8, 1984 Hilo, Hawaii" 9," Kahului, Maui"29," Hilo, Hawaii" 30," Kahului, Maui

July 10, 1984 Puna Community Council" 11," Volcano Community Association" 27," Ulupalakua, Kanaio , Maui" 30," Pahoa Community Council

PUBLIC HEARING ON SUBZONE DESIGNATION:

Sept. 10, 1984 Kula Elementary School, Maui" 11," Pahoa Elementary School, Hawaii" 12," Campus Center, UH-Hilo, Hawaii" 12," Volcanoes National Park, Hawaii

Nov. 16, " Board designates Kilauea Lower East Rift andHaleakala Southwest Rift Geothermal ResourcesSubzones

CONTESTED CASE HEARING ON PROPOSED KILAUEA UPPER EASTRIFT GEOTHERMAL RESOURCE SUBZONE:

Dec. 12-20, 1984 State Office Building, Hilo" 28, " Decision and Order by the Board to consider

land exchange between Campbell Estate andState; and assess Kilauea Middle East GRS

PUBLIC INFORMATION MEETING ON PROPOSED KILAUEASOUTHWEST AND MIDDLE EAST RIFT SUBZONE DESIGNATION:

Mar. 13, 1985 Keaau, Hawaii" 14, ~ " Pahala, Hawaii

May 15, " Pahoa, Hawaii" 16, " Pahala, Hawaii

PUBLIC HEARING ON KILAUEA SOUTHWEST RIFT ANDMIDDLE EAST SUBZONE DESIGNATION:

Sept. 26, 1985 Pahoa, Hawaii" " " Pahala, Hawaii

CONTESTED CASE HEARING ON KILAUEA MIDDLE EAST RIFT GRS:

Nov. 13-15, 1985

Dec. 20, 1985

Dec. 27, 1985

Jan. 13, 1986

Decision and Order of the Board designatingKilauea Middle East Rift GRS 9,014 acs asa GRS

Land exchange between Campbell Estate and State(Kahaualea and Puna Forest Reserve, includingthe Wao Ke1e '0 Puna Natural Area Reserve)completed

Public hearing on Campbell CDUA to conductgeothermal activities in Kilauea Middle East RiftGRS (HA 12/20/85-1830)

Feb. 18-23, 1986 Contested case hearing on CDUA

Mar. 14, 1986

April 11, 1986

October 1986

December 1986

Contested case hearing continued

Decision and Order (D/O) of the Board to allow25-100 megawatt incremental geothermaldevelopment

Appeals on the Kahaualea CDUA D/O, KahaualeaEIS and Kahaualea GRS D/O; dismissed bythe Third Circuit Court

Written briefs for Kilauea Middle East RiftGRS D/O and Kilauea Middle East Rift CDUA D/Ofiled with Hawaii Supreme Court (re: 1stAmendment "religious" free exercise clause).Awaiting date for oral argument before SupremeCourt, sometime in March or April 1987.

GEODATESOF PRIOR AND FUTURE GEOTHERMAL PROCEEDINGS

1982

***

CAMPBELL'S KAHAUALEA CDUA FILED MAR. 2, 1982CDUA PUBLIC HEARING MAY 20, 1982CDUA CONTESTED CASE HEARING OCT. 5, 1982

1983

**

DECISION AND ORDER ISSUED BY BLNR FEB. 25, 1983ACT 296, SLH 1983 JUN. 14, 1983

1984

••

SUPPLEMENTAL CDUA HEARING ON VOLCANIC HAZARDS MAR. 12, 1984PROMULGATION OF TITLE 13, CHAP. 184, GRS ADMI'~N~.-=R7.U~L~E~S~---A'UG. 24, 1984ACT 151, SLH 1984 MAY 25, 1984PUBLIC INFO. MEETINGS MAY THRU JULY, 1984PUBLIC HEARINGS SEPT. 10-12, 1984DESIGNATION OF THE FOLLOWING GRS:HALEAKALA SW RIFT GRS~~~~~~~-----------------------,NOV.16, 1984KILAUEA LOWER E.RIFT (KAMAILI) GRS • • •KILAUEA LOWER E.RIFT (KAPOHO) GRS •CONTESTED CASE HEARING ON THE PRO:P~O~S~E~D--------------------KILAUEA UPPER E.RIFT (KAHAUALEA) GRS DEC. 12-20, 1984DECISION AND ORDER ISSUED BY BLNR DEC. 28, 1984*

******

*

1985

***

*

PUBLIC INFO. MEETINGS ~_,MAR. THRU MAY, 1985PUBLIC HEARINGS SEPT. 26, 1985CONTESTED CASE HEARING ON THE PROPOSEDKILAUEA MIDDLE E.RIFT (PUNA FOREST RESERVE) GRS NOV. 13-15, 1985DECISION AND ORDER ISSUED BY BLNR DEC. 20, 1985

1986

**

**

CAMPELL CDUA PUBLIC HEARING ~JAN. 13, 1986CDUA CONTESTED CASE HEARING FEB. 18, 1986

TO WHENEVERLAND EXCHANGE PROPOSAL TO BE APPROVED:- DATE PENDINGCONTESTED CASE HEARING ON THE PROPOSEDKILAUEA S.W. RIFT (PAHALA) GRS DATE PENDING

Prior Geothermal Proceedings

A. CDUA filed by Estate of James Campbell No. HA 3/2/82-1453

1. Public hearing held May 20, 1982. Hilo High School Cafetorium

2. Contested case hearing:

--October 5. 1982 - at State Office Building in Hilo--February 10. 1983 - final oral arguments--February 25, 1983 - BLNR issued Findings of Fact, Conclusions

of Law, and Decision and Order.

3. Informational forum to take evidence regarding geologic hazardsat Kahaualea, March-April, 1984.

4. Exploration Plan for Kahaualea submitted to BLNR by Estate ofJames Campbell.

B. Subzone Designation Process

1. Public informational meetings:

--May 8, 1984, Hilo, Hawaii--May 9, 1984, Kahului, Maui--May 29, 1984, Hilo, Hawaii--May 30, 1984, Kahului, Maui--July 10, 1984, Puna Community Council--July 11, 1984, Volcano Community Association--July 27, 1984, Ulupalakua, Kanaio , Maui--July 30, 1984, Pahoa Community Council

2. Public hearings:

--September 10, 1984, Kula Elementary School, Maui--September 11, 1984, Pahoa Elementary School, Hawaii--September 12, 1984, Campus Center, UH-Hilo, Hawaii--September 12, 1984, Volcanoes National Park, Hawaii

3. November 16, 1984 - Board designated Kilauea Lower East Riftand Haleakala Southwest Rift Geothermal Resource Subzones.

4. Contested case hearing:

--December 12-20, 1984 - at State Office Building in Hilo.--December 24, 1984 - parties submitted their proposed findings

of fact and conclusions of law to the Board.--December 28. 1984 - decision and order of the Board.

5. Public informational meetings:

--March 13, 1985, Keaau, Hawaii--March 14, 1985, Pahala, Hawaii--May 15, 1985, Pahoa, Hawaii--May 16, 1985, Pahala, Hawaii

6. Public hearings:

--September 26, 1985, Pahoa, Hawaii--September 26, 1985, Pahala, Hawaii

7. Contested case hearing, Kilauea Middle East Rift GeothermalResource Subzone

,~--November 13~ 1985 - at State Office Building in Hilo ,

-2-

Pending Geothermal Activities

DEPARTMENT OF LAND AND NATURAL RESOURCES

1. Request for a contested case hearing on the proposed KilaueaSouthwest Rift GRS currently being evaluated by the Board of Landand Natural Resources and Attorney General. Determination to bemade as to whether a contested case hearing will be granted.

2. Pursuant to Acts 290. 124. 167. and 187. SLH. the Department'sAdministrative rules on the Designation and Regulation ofGeothermal Resource Subzones need to be amended.

3. Proposed pipeline project between Thermal Power Co. and theNatural Energy Laboratory of Hawaii to connect Kapoho State No.I-A well and the HGP-A power plant facility will require review ofamended Plan of Operations submitted by Thermal Power Co.

4. Puna Geothermal Venture's (PGV) proposes 25 MW power plant onlands leased under State Geothermal Resource Mining Lease No.R-2. This proposed project will require Board approval on a newPlan of Operations.

5. Issuance of mining lease to Campbell Estate covering approximately9,014 acres in the Kilauea Middle East Rift GRS.

6. Issuance of a geothermal exploration permit to Puna GeothermalVenture to conduct surface geophysical surveys. Board submittalin preparation.

7. Jointly funded (DPEDIDLNR) consultantdevelopment of Hawaii's renewable energywater resources.

study evaluatingresources and State's

1986

1985

1984

1983

GEOTHERMAL LEGISLATION

Act 290. SLH 1986 - Contested Cases

Allows Board at any time after a contested case hearingrelated to geothermal development activities in conservationdistricts is requested. to appoint a special master formediation.

Act 167. SLH 1986 - Conservation District Use Permit

Establishes criteria upon which the Board shall review aconservation district use permit application for geothermaldevelopment activities.

Act 124. SLH 1986 - Direct Use Applications

Amends definition of geothermal development activity toinclude direct use applications.

Act 187. SLH 1986 - Notice to Landowners Affected

Relating to Notification of Owners of Properties includedWithin and Adjoining Areas Being proposed for designationas Geothermal Resource Subzones

Act 138. SLH 1985 - Geothermal Royalties

Provides for the waiver of royalty payments to the State bythe Board for up to eight years.

Act 226. SLH 1985 - Geothermal Appeals

Requires that any appeal of a geothermal-related contestedcase hearing be made directly to the Hawaii Supreme Court.

Act 151 - Geothermal Resource. Subzones

Clarifies rights of existing geothermal resource mininglessees (i. e. "grandfathered" certain leases as GRS).

Act 296 - Geothermal Resource Sub zones

Provides for designation and regulation of geothermalresource subzones.

BLNR: Kilauea MER

II • BACltGaotlND

-2 - HA-1830

To understand the context in which this application arises, it is

necessary to briefly review the history of the applicant's geothermal

proposals. ~ March 2, 1982, the Estate of James ~bell filed a

Conservation District Use Applicatioa (CDUA) with the Department of Land

and Natural Resources to develop geothermal resources at Kahauale'a,

Hawaii. This CDU4, No. HA-3/2/82-l463, was processed and a draft

Environmental Impact Statement prepared. On May 20, 1982 a petition for

a contested case hearing on the CDUA wa. filed. The petition wasgranted. 'l'he contested case hearing was convened on October 5, 1982, and

continued on OCtober 25 through 29, 1982, November 15 through 19, 1982,

and December 7 through 10, 1982.

The Board of Land and Natural Resources (iLNR) -.de extensive

findings of fact, issued a conclusions of law, and decision and order

BLNR: Kilauea MER -3 - HA-1830

geothermal resource subzones (GRS). DOWALD began work on the assessment

of potential geothermal resource subzones on June 14, 1983, when Act 296,

SLH 1983 was signed into law.

In 1984, the Legislature passed Act 151. This act gave first

priority to the assessment of the Kahauale'a area as a potential

geothermal resource subzone and required the BLNR to act on the

designation of the Kahauale'a area by December 31, 1984. DOWALD assessed

the Kahauale'a area and proposed a 5300-acre area for designation as a

GRS.

Public inforsation aeetings and public hearings were held aa part

of the subzone designation procsss. At the public hearina a.1d on

Septeaber 12, 1984 in Hilo, Hawaii, requests for a contested case hearing

on the proposed Kahauale'a GRS, were made to the BLNR and subsequently

granted. The IlLNR colUiueted the contested case hearing on December

12-20, 1984 in Hilo, Hawaii and iaaued ita lleciaion and order on December

28, 1984.

In the December 28, 1984 decision and order, the BLNR designated

the 800-acre area described in ita February 25, 1983 decision and order

as a geothermal resource sub&ooe under the following conditions upon:

(1) Cessation of volcanic activity in, around and near the area

permitted by the Board's February 25, 1983 decision and order.

(2) No new geothermal development activity associated with the

permitted area shall be considered until after it has been determined

that the geologically hazardous and eruptive activity has ceased.

(3) The Board formally requested the Estate of James campbell to

investigate and coll8ider a land exchange involving State-owned lands in

the Kilauea Middle East Rift Zone and Campbell Estate's lands at

Kahauale'a.

(4) The BLNR further resolved to consider the Kilauea Middle East

Rift Zone for designation as a GRS on the basis of information presented

at the contested case hearing which indicated that Campbell's Kahauale'a

BLNR: Kilauea MER -4 - HA-l830

property contained higher quality native habitat than the Wao Kele '0

Puna Natural Area Reserve (NAR).

(5) The Board directed the Division of Water and Land Development

to assess the Kilauea Middle East Rift Zone in and adjacent to the Wao

Kele '0 Puna Natural Area Reserve beginning on the western boundary of

the existing Kamai1i GRS. This area had not previously been evaluated as

a GRS because of its classification as a Natural Area Reserve.

Conversely, the privately

considered as a natural area

owned Kahauale'a lands had not been previously

reserve because under State law, natural

area reserves may only be on State land.

(6) 'Ehe 4oc i e $eQ further ••••• ...... ,i£" (a) the assessment of

the Kilauea Middle East Rift Zone Goea aoc r..ult i~ a de.i~tio. aa a~othermal resource subzone, or (b) a land exchange between tha. State

of Hawaii and the Estate of James campbell ia UQt cona~ted, thea the

remainder of the 5300 acra Kahauale'a area originally proposed by DOWALD":t'" .. ' /.'

for designation as a GRS, shall be designated as a GRS. .s->: ---~ ..,_ .:: / •

(7) The Board urged the federal government and ~National park~~._~._Service (NPS) to seek .Wht~UOA"Q£.. "I.caU.. U escribed in the Volcanoes

National Park Master Plan), which the State will not itself seek, but

which is desired by the NPS for addition to the Volcanoes National Park.

(8) jiM1IJ,.,_ ~ Geciaioa proYidadthat, " ...if the State of

Hawaii and Caapeell !state should later conau.aate a land exchange

involving lands at Kahauale' a--for State or other lands upon which

geothermal activities may take place, then the geothermal subzone

designatioa 1n this Decision and Order &hall cease to exi8t and shall.... .. y-~"", '/ I /' -'T' .1have no force or effect in law... f P'R-".I'.;_'/J___ I~, /./~ ",~~.) Vit'r'fi,/' «.: r/":' .;

.r;.7~- .: ("'///,.-;f:!-,,-- l.Jd/' ,j .J-+J' J1'~ 18- i! 7 _1"

Pursuant to the decision and order of December 28, 1984, DOWALD

conducted an assessment of the Kilauea Middle East Rift Zone in and

adjacent to the Wao Kele '0 Puna NAR for a geothermal resource subzone,

using the same criteria set forth in Act 296, SLH 1983.

BLNR: Kilauea MER -5 - !IA-1830

The assessment of the Kilauea Middle East Rift Zone is outlined in

the DOWALD Circular C-114 (State Ex. 2, G.S. No. 9/26/85-5) and in the

proposal to designate the area as a GRS (State Ex. I, G.S. No. 9/26/85-5).

The BLNR held a ~hlic bearing ou the proposed designation of the

Kilauea KiddIe East Rift as a geothermal resource subzone on September

26, 1985, and at that time, a request for a contested case bearing was

made to the BLNR.

On October 16, 1985 the BLNR announced that a cautested case

bearing would be held on the proposed GRS designation Ga Noveab&r 13,

1985, in Hilo, Hawaii. OIl Nove.her 13, 14, and 15, 1985, the BLNR

conducted a contested case hearing on the proposed deaigaation of 11,745

acres in the Kilauea Middle East Rift zone as a geothermal resource

subzone. On nec....r 20, 1985, the Board issued a decision and orderdesignating approximately 9,014 acres of the Wao Kele '0 Puna area as a

GRS. On April 9, 1986, the Board issued its findings of fact,

conclusions of law and revised decision and order.

III. LAND USE PROPOSAL

1. Subject

FINDINGS OF FACT, CONCLUSIONS OF LAW AND DECISION AND ORDER on the

Conservation District Use Application (CDUA) No. !IA-12/20/85-l830 for

exploration, development and production of 100 MW of geothermal energy

resources, at Kilauea Middle East Rift Geothermal Resource Subzone

(KMER/GRS), Puna, Hawaii.

2. Applicant

Mr. O. K. Stender

Chief Executive Officer

The Estate of James Campbell

828 Fort Street Mall, Suite 600

Honolulu, Hawaii 96813

BLNR: Kilauea MER -6 - HA-1830

3. Landownership

The Estate of James Campbell claims the fee ownership of the property

subject to the State of Hawaii's reservation of all mineral and metallic

mines including all geothermal resources and the reservation of the

rights of tenants as contained in the eschange deed with the State of

Hawaii dated December 27, 1985.

4. Location

The land is located in the southern portion

at fHK 1-2-10:3 in the Kilauea Middle East

Subzone, Puna, Hawaii.

of the applicant's property

Rift Geothermal Resource

5. Description of Area

According to the Decision and Order issued by the BLNR on Dec. 20,

1985, the KMER/GRS contains approximately 9,014 acres, more or less. The

KMER/GRS is located within TMK No. 1-2-10, portions of Parcels 1 & 3

(Conservation District S\ibzoll8 code p), TMK No. 1-2-8, portions of

Parcels 8, 12, 13, 16, & 17 (~~tur&l Distriet) and TMK 1-2-8 Parcels

16 & 17 (A,sricll1nral District). The Applicant's property is located

entirely within the former Wao Kele '0 Puna Natural Area Reserve, TMK No.

1-2-10 Parcel 3.

The KMER/GRS is bordered: on the~ by Kahauale'a which is the

subject of another Conservation District Use Permit (CDUA File No.

HA-3/2/82-l463), granting the Applicant the right to explore for

geothermal resources to produce electrical power; on the north by the

former Puna Forest Reserve and a portion of the former Wao Ke1e '0 Puna

Natural Area Reserve; on the east by adjoining agricultural parcels

containing scattered residences fro. which there is a 2,500 feet setback

from the property line of the Kaohe Homesteads; on the southeast by

state-owned property and a part of the upper Kaimu Homesteads; and on the

south by part of the upper Kaimu Homesteads, the Kaimu-Makena Homesteads,

Kauka Homesteads, Kihale-Keonea Homesteads and the Kupahua Homesteads.

BLNR: Kilauea MER -7 - 1IA-1830

6. Area of Subzone/Use

The KMER/GRS contains approximately 9,014 acres, more or less. Of

that area, it has been proposed that approximately 244-304 acres may

potentially be used for this project. Of this total, approximately 244

acres will be directly affected by clearing and/or construction.

7. SuUoae

~ XMiRlGiS is designated as Conservation of the State Land Useclassification. It is ~:l.f1ed as a Protactiva SIlUO.... of Consenation

District and as a geothermal resource subzone.

8. Current Use

According to the EIS and public testimony, the land is currently in

its natural state, essentially vacant. The area is mostly forested. The

vegetation ranges from high quality native vegetation, (wet 'ohi'a forest

with dense 80% canopy) to lower quality vegetation and open areas

devastated by lava flows in and below the rift zone.

9. Proposed Use

The Applicant requests permission to use the land within KMER/GRS

to explore for, develop and produce up to 100 MW of geothermal energy.

The Applicant's proposed uses are summarized from the Environmental

Impact Statement (EIS) as follows:

prove the existence

and whether it can be

and development, in

will help determine the

KMER/GRS, the rate of

of the project can be

100 MW of electrical

Proposed Exploration

The initial objectives of this project are to

of a geothermal resource, its characteristics,

economically produced. Subsequent exploration

parallel with additional market development,

extent of the producible resource underlying the

development and whether the planned scope

realized. The Applicant proposes to develop up to

BLNR: Kilauea MER -10- HA-1830

first 25 MW of power are expected to parallel the proposed access roads

and existing off-site roads. Routes for transmission lines for the

larger power requirements (138 KV) for use on the Big Island or for

export via undersea cable cannot be determined until the extent and

location of geothermal power resources and users are known. Drilling

operations will be conducted by the operator, True Geothermal Energy

Company. It is anticipated that most construction operations will be

contracted through local companies. Traffic into the KMER!GRS parcel

will be controlled by a gate at the entrance together with such safety

and security patrol activity as may be required for the drilling and

construction operations within the property. The landowner and developer

will cooperatively institute a security management plan to provide for

orderly control of project activities and monitoring activities

necessitated by opening a road into this parcel.

Proposed Marketing

Although marketing of natural resource is not in itself a question

normally considered as a land use variable, in this instance the

applicant has proposed marketing the planned electricity produced at

KMER!GRS to the HELCO electrical distribution grid.

According to the applicant, and based on the most

scenario of commencing the initial drilling on July 1, 1986,

12.5 MW of power will be on-line around March 1, 1989 and the

should be on-line during 1995.

optimistic

the first

final 75 MW

10. Chronology

The following is a brief chronological summary of the major events

in the application process, EIS process, public hearing process, and the

contested case process. It is not meant to be complete and all inclusive.

January 13, 1983

In his closing argument, Mr. Kenneth Kupchak, attorney

Volcano Community Association at the contested case hearing

representing

for the CDUA

BLNR: Kilauea MER -11- HA-1830

for geothermal exploration and development at Kahauale'a, strongly urged

the Board that a land exchange be considered as a resolution to the

conflict between his client and the applicant. The land exchange

suggested included the exchange between the Estate of James Campbell,

landowner of Kahauale'a, and the State of Hawaii, landowner of the Puna

Forest Reserve and the Wao Kele '0 Puna Natural Area Reserve •

.J!!.lx 6, 1985The DLNR filed an &IS ,caparatLoa aotice with the Office of

Environmental quality Control (OEQC) in accordance with Sections

11-200-15 and 11-200-26 through 11-200-29 of the Environmental Impact

Statement regulations. ~ fil1nS allowed the applicaat to preper@ a

.upplemantal EIS for the geothermal project within the proposed KMER/GRS

as a continuation of the Kahauale'a project.

July 23, 1985

The OEQC published the preparation notice for the Supplemental EIS

for the Geothermal Project within the proposed KMER/GRS in Puna, Hawaii

in the OEQC Bulletin.

Aagwot 20, 1985

A eo".rYat1en Dietr1et Ue@ Applieatioa w•• filed with

explore for and develop geothermal energy within the proposed

the DLNR

KMER/GRS.

to

Dec_her lict"l.935The a.UulOl!;, tiMId the draft ...ppl_tal EIS with the DLNR and

OEQC.

Dec_her 20, 1985

The BLNR issued its Decision and Order on the designation of the

KMER/GRS with the Findings of Facts and Conclusions of Law to be issued

separately.

BLNR: Kilauea MER -12- 1IA-1830

December 23, 1985

The OEQC

supplemental ElS.

published

The ElS was

the notice of the filing

available for comment.

of the draft

December 24, 1985

The BLNR announced that a public hearing for the CDUA would be held.

December 27, 1985

The exchanS8 deeda between the Estate of James Campbell and the

State of Hawaii for Kahaua1e'a and the Puna Forest Reserve including the

Wao Ke1e '0 Puna Natural Area Reserve vaa exeeuted.

January 3, 1986

The D~ iaaued the notice to

application and had 81so determined

Statement muat be prepared.

the applicant aceeptins the

that an Environmental Impact

January 13, 1986

At the public hearing on the application, raqueata were made for a

contested case hearins.

January 24, 1986

The BLNR _uw;ed that a.. Qontested case hearing would be held for

the application.

February 6, 1986

The applicant filed with

Environmental Impact Statement.

the BLNR the Final Supplemental

February 14, 1986

The BLNR found

the requirements of an

the Final Supplemental

ElS as specified in the

ElS was adequate and had met

ElS Regulations.

BLNR: Kilauea MER -13- 1IA-1830

February 18, 1986 through February 23, 1986

The contested case hearing convened. Parties admitted to the

hearing were: Applicant, County of Hawaii, Sierra Club Hawaii, Susan

Carey, Debra Hopson, Eva Lee, Chiu Leong, Ann Markham, Mike Markham,

Beverly McCallum, Diane Ley, Lehua Lopez, Dr. Emmett Aluli (intervenor),

Pulikapu 0 Kamohoali'i Dedman (intervenor), Mark and Lisa Heuer, Dan and

Carla St. John, Michael and Sunny LaPlante, Rick Warshauer, Mae Mull,

Karl Kirkendall and Melissa Kirkendall. The hearings were conducted in

the morning, afternoon and evenings.

March 14, 1986

The heariug reconvened at the State Office BUilding Conference

Rooms in Hilo, Hawaii.

March 21, 1986

Parties filed their proposed Findings of Fact, Conclusions of Law,

and Decisions and Order.

April 11, 1986

The nLNR issued the Decision and Order on the Conservation DistrictUse Application with the Finding of Fact and Conclusions of Law to be

issued separately.

IV. FINDINGS OF FACT

The Board of Land and Natural Resources makes the following

Findings of Fact. These findings of facts are organized for convenience

and clarity in accordance with the factors identified in HRS 205-5.2 and

Campbell Estate's application. The Board incorporates by reference all

of the record in each of the previous proceedings related to Campbell

Estate's geothermal development applications and GRS designations:

1. Kahauale'a CDUA, file No. 1IA-3/2/82-l463

2. Kahauale'a Subzone designation, file No. 8/27/84-1

3. Kilauea Middle East Rift Subzone designation, file No. 9/26/85-5

November 21, 1988

MEMORANDUM

TO: Mr. William Paty

FROM: Manabu Tagomori

SUBJECT; STATUS REPORT ON GEOTHERMAL ACTIVITIES

Geothermal and Cable System Development Permitting Act (Act 301, 1988)

1. A Geothermal/Cable Interagency Group has been established, consistingof the following sixteen member agencies:

DLNR, Lead AgencyDepartment of TransportationOffice of State PlanningDepartment of HealthDepartment of Business and Economic DevelopmentCounty of HawaiiCounty of MauiCity & County of HonoluluU.S. Corps of EngineersU.S. NavyU.S. Coast GuardU.S. Environmental Protection AgencyU.S. Geological SurveyU.S. Fish and Wildlife ServiceNational Marine Fisheries ServiceNational Park Service

2. On September 29, 1988, the first meeting of the interagency group washeld to brief members on the status of geothermal activities and todiscuss Act 301 and the objectives of the interagency group, including ajoint agreement and tentative work plan.

3. November 30, 1988 was set as a deadline for member agencies tosubmit copies of their rules, regulations, permit application, forms, etc.,in order to establish a repository of all pertinent geothermal related rulesand procedures. Upan receipt of all participating agencies' rules andregulations, DLNR staff will begin drafting administrative rules toimplement provisions of Act 301.

4. DLNR staff is preparing a tentative interagency group workplan.

5. Staff is also working on a consolidated permit application form to beused by potential applicants.

6. A second meeting of the interagency group is tentatively scheduled forsometime in December, at which time members will discuss a jointinteragency agreement for processing geothermal/cable permitapplications.

emorandum to Mr. William Paty -2- November 21, 1988

7. Establishment of a permit information and coordination center withinDLNR, to provide assistance to potential applicants is expected to be inoperation by early 1989.

8. Approval has been obtained for hiring of additional staff (a secretary anda geothermal/cable analyst).

DBED/Uom Exploratory Drilling Project

1.

2.

DN:DL:dh

The University of Hawaii, under the leadership of Harry Olson and withState funds appropriated to DBED, is proposing to drill as many as fiveexploratory test holes approximately 4,000 to 6,000 feet in depth withindesignated Geothermal Resource Subzones (GRS)--two in the KapohoGRS, one in the Kamaili GRS, one in the Kilauea Middle East RiftGRS, and possibly one in the Haleakala Southwest Rift GRS.

The proposed UofH exploratory test-hole drilling will require geothermalexploration and drilling permits from DLNR. Other permits such asHawaii County Geothermal Resource Permits and Department of Landand Natural Resources' Conservation District Use Permit may berequired depending on the land use district selected for the proposedtesthole sites. Applications for DLNR permits are expected to besubmitted by the UotH about December 1st.

-~-L~ ANABU ~MORI

'l,·~ t~! \-'

1 t ,_.r..

, "--',r:',r

t!

. n::

"r

",',/(.:,:, '''I ('"'c

,.,:.

L' C' / (.,' ,i I:) ':', ..', t : 'I::.

,:'.

LD",: r:.:~ r

o

!',

!':, r::

Ii

.rt

c1

'---',:--; '.h jr: ';'''1

I"~; i ,"'," j"

,'j 0::1

,:.:'j,--) 1 ~-"i q

() i-'i r) .L CO':' t; .1 un (J -, t. i": l::':' ::I, r, to::' o r '::'. r to. t ,- t. i--j EO'

!-),-,j

::il---,j

.0. c. 1 'to

""1: t e.y:-

;..·'U:-'

...' •.. Uf::

C)"

'-::'i:',~ :. C_'

'. i-li::"'-/ I J i-,i":

L C),:·(i '...1

Ii'