Utah Admin. Code R652-21-1406 - Force Majeure

(1) Upon reaching the Emergency Trigger, the division may invoke force majeure in contracts, mineral leases, and royalty agreements which contain such provisions.

(2) If force majeure is invoked, the parties to any Operations Royalty Agreement shall:

(a) invoke the force majeure provisions within their respective agreements; and

(b) participate in an informal conference with the Director and any other affected Operators to arrive at a plan for the scope and duration of the cessation of operations caused by the Emergency Trigger.

(3) The division shall promptly waive force majeure once salinity conditions improve to levels below the Emergency Trigger threshold.

(4) If force majeure is invoked, the affected Operator is relieved from performance of any contractual provision requiring production to hold any Operations Royalty Agreement for a maximum of two years.

(5) If force majeure is invoked and the Emergency Trigger persists beyond two years, the division shall terminate the Operations Royalty Agreement and require the Operator to engage in new contracts where the Operator represents and warrants future operations will not amount to a net depletion of water.

(6) If force majeure is invoked, an Operator may continue to process brines already extracted and may sell products derived from those brines.

Notes

Utah Admin. Code R652-21-1406

Adopted by Utah State Bulletin Number 2024-20, effective 10/8/2024