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HomeMy WebLinkAbout85-001RE " JED c VOL 62 FAGE� 85" 2011 LEG COUNSEL BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Ordinance Amending the i Geothermal Policies, Ordin- ance No. PL -20, Deschutes County Year 2000 Comprehen- sive Plan, as Amended; Adopt- ing Geothermal Resource Maps, Adopting the Geothermal Resource Element and Making Findings. ORDINANCE NO. 85-001 THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS as follows: Section 1. Policy Number 4, Alternative Energy Sources, Deschutes County Year 2000 Comprehensive Plan, Ordinance PL -20, is further amended to read as follows: "4. Geothermal Resources Policies. A. Public Involvement 1. The Planning Division shall ensure that citizens, land owners, and lease holders are given ample opportunity to be involved in all phases of geo- thermal planning and decision-making that occur under the County's jurisdiction. This involvement program shall provide for continuity of citizen participation, and for information that enables citizens to identify and comprehend geothermal issues. 2. Federal and state agencies exercising geothermal responsibilities in the County shall be expected and encouraged to make use of the County's existing citizen involvement program whenever appro- priate. B. Intergovernmental Coordination 1. The County shall encourage the formulation of federal and state land and resource management poli- cies which are consistent with the County's geothermal policies. In this regard the County shall endeavor to become A partner with the federal and state governments in determining the future of geothermal energy in the County. 1 - ORDINANCE NO. 85-001 It VOL 62 PAGE X42, 2. In view of the multiplicity of govern- mental jurisdiction over geothermal resources, the County shall seek close coordination with all affected local, state, and federal agencies. In this regard the Planning Division shall maintain regular communications with federal and state agencies that are exercising geothermal responsibilities in the County, and shall keep local officials informed of federal and state actions accordingly. C. Resource Assessment 1. In order to identify and protect the un- defined values of its geothermal resources, the County shall support continued resource assessment activities by the public and private sectors. In this regard, the Planning Division shall monitor such activities and collect additional resource data wherever possible for inclusion in the Geothermal Element during updates or amendments. 2. In recognition of the public benefit de- rived from greater resource knowledge, the County may undertake its own resource assessment activities where such work is expected to ultimately benefit the local economy. The results of County -sponsored resource assessment will be given the widest possible dissemin- ation in order to facilitate further geothermal devel- opment consistent with County policies. D. Resource Utilization 1. The County supports utilization of geo- thermal resources, either with heat pumps, direct appli- cations, or for purposes of generating power. However, such support is conditioned on a determination that the proposed use can be developed in a timely, orderly, and environmentally -sound manner, and that adequate protec- tion of the resource is provided so as to ensure its continued availability and productivity over time. Fur- ther, such support is limited to those resource areas where conflicting uses are not considered predominant, as identified in Policy 4(F). 2. When County facilities are to be renovat- ed or newly constructed consideration shall be given to the use of geothermal resources in these facilities when such use is technically and economically advanta- geous. The County shall encourage other local entities to conduct similar geothermal evaluations during their facility planning processes. 2 - ORDINANCE NO. 85-001 E. Economic Development t VOL 62 FACE 743 1. The County's support for geothermal devel- opment shall be closely coordinated with its economic development program. The County believes that its low and moderate -temperature resources may offer a signifi- cant comparative advantage to business and industry, and it shall support geothermal projects that serve to retain or create employment opportunities in the County. F. Land -Use 1. For purposes of compliance with Statewide Planning Goal 5, the County believes its geothermal resources and the conflicting uses identified in Sec- tion 4 of the Element should be balanced according to site-specific relative merits. Implementation measures shall provide protection for conflicting uses by condi- tionally allowing geothermal exploration and produc- tion, thereby balancing the benefits to the County from both geothermal resources and conflicting uses. This policy shall apply to all resource areas inventoried in Section 2 of the Element, except in those areas where the conflicting uses listed in Table 4.1 of the Element shall be fully protected as follows: a. Exploration and Production Prohi- bited (1) That portion of the Newberry Volcano resource area lying within the exclusion area boundary shown in Exhibit "B". (2) Those areas presently defined by the Deschutes National Forest Land & Resource Man- agement Plan, incorporated hereby by reference, as ineligible for leasing, specifically: Wilderness, Re- search Natural Areas, Experimental Forest, Bend Muni- cipal Watershed, Developed Recreation Areas, and Dis- persed Recreation Unroaded Winter Areas. b. Production Prohibited (Exploration Allowed) (1) Those areas presently defined by the Deschutes National Forest Land & Resource Man- agement Plan, incorporated hereby by reference, as being limited to no surface occupancy, specifically: Experimental Forest, Dispersed Recreation Unroaded Areas, Dispersed Roaded Areas, Developed Receation Areas, Protection Management Areas, Special Management Areas, Potential Research Natural Areas, and Threatened and Endangered Species Areas. 3 - ORDINANCE NO. 85-001 h VOL 62 FACE 744 The County has determined that conflicting uses'shall be fully protected in the foregoing areas because of the greater economic, social, and environmental bene- fits that accrue from the conflicting uses. In reach- ing this determination, the County has relied upon the discussion of conflicting uses and their consequences contained in Sections 4 and 5 of the Geothermal Ele- ment; the Rural Development, Economy, and Recreation sections of the Growth Management Element of the Com- prehensive Plan; the Forest Lands, Open Spaces, Fish & Wildlife, and Historic & Cultural sections of the Re- source Management Element of the Comprehensive Plan; the Recreation, Fish & Wildlife, Special Uses, Visual Quality, Economy, Employment, and Forest Dependent Community Concept sections of the Deschutes National Forest Land & Resource Management Plan; and the Oregon Department of Economic Development 1983 Annual Economic Report for Deschutes County. It is the County's determ- ination that the conflicting use information contained in these references constitutes sufficient evidence of the greater importance of the conflicting uses to the County, thereby warranting exclusion of geothermal ex- ploration and/or production in the areas cited above. 2. The County recognizes that if utilization of geothermal energy is to be optimized, the designa- tion of land -uses for areas overlying geothermal re- sources must accommodate those uses to which the re sources can be applied. In this regard, the County shall incorporate geothermal utilization as a determ- inant in land -use planning; and, where appropriate, shall review permitted uses that can utilize geothermal resources if and when suitable resources are confirmed in an area. However, geothermal end -uses shall be permitted only where their compatibility with surround- ing land -uses can be demonstrated with certainty. G. Environmental Protection 1. In all cases the County's support for geothermal development shall be conditioned upon sat- isfactory evidence that sufficient environmental safe- guards are provided. Environmental concerns of the County shall include, but not be limited to: air qua- lity, water quality, noise, subsidence, induced seis- micity, water consumption, fish and wildlife, vegeta- tion, historic and cultural resources, visual and scenic qualities, erosion and earth stability, waste disposal, and public safety and health. H. Public Facilities and Services 1. In addition to Policy G(1), in all cases the County's support for geothermal development shall 4 - ORDINANCE NO. 85-001 VOL 62 PACE 745 depend on the extent of impacts to public facilities and services. In this regard, the County's concerns shall include, but not be limited to: roads, drainage, schools, law enforcement, fire protection, water sup- ply, sewage disposal, solid waste disposal, and general administrative services. 2. The Planning Division, in consultation with the Public Works Department, shall monitor geo- thermal activities in order to forecast impacts to public facilities and services; and shall prepare cap- ital improvement or related plans accordingly so as to support geothermal development in a timely and orderly manner with a level of facilities and services appro- priate to such development. I. Fiscal Responsibilities 1. In recognition of specialized admin- istrative demands that may be placed on the County by geothermal developers, the County shall require said developers to defray County expenses associated with processing geothermal permit requests, or conducting related studies or monitoring programs, directly re- quired by a geothermal project. This Policy shall also extend to any government agency engaged in geothermal development." Section 2. Deschutes County Year 2000 Comprehensive Plan, Ordinance No. PL -20, is amended by the addition of "Geothermal Resource Areas" map, marked Exhibit "A", attached hereto and by this reference incorporated herein and "Newberry Exclusion Area Map", marked Exhibit "B", attached hereto and by this reference incorporated herein. Section 3. Adopting the book entitled Geothermal Element for the Deschutes County Comprehensive Plan and Zoning Ordin- ance, dated January 3o,-1984, as the Geothermal Resource Element of the Deschutes County Year 2000 Comprehensive Plan, Ordinance PL -20. Section 4. Adopting findings as set forth in Exhibit "C", attached hereto and by this reference incorporated herein, in support of the amendments set forth in Section 1 of this Ordin- ance. 5 - ORDINANCE NO. 85-001 ir VOL 62 FACE 746 DATED this�day of� , 1985. BOARD OF COUNTY COMMISSIONERS OF D SCHUTES COUNTY, OREGON v UT E, Chairman ;LAaUN/A UT ATTEST: LOIS BSTO E, Commissioner Recording Secretary DI M D IN, C mmissioner 6 - ORDINANCE NO. 85-001 EXHIBIT "A" 07"7 U) Zm �� ✓ _ 9PC D p Y C Y> D• •�• l W �... d N 2 2;06 (0 � u ��JG ✓y:iiwra CL `^ O � m O u r W N CC E "" ✓Y Y4 Z coC Y 6• g C O QI N O Q G J O< Y Y Y '•< r G Y Y) 7 � F 6 Y O r o C 0 6✓ E r Y J i• O W y W cc C/)� d I Q i I 0 Jr Wej � / \ Q 1 Ip •1 / < W ? �w E1 L y k' qi f 1.•M • - 1 44 #moi: •1��A1 Z E <rl• I�;�."{,I��`Iy}���4°Iy�l ,�}�,�;/`2..10 'i(il� ��i �} %(Y cyi-24 i • _ , , —� < � i'��i•�--;-�� - __TTS ar �. VOL 62 FACE748 EXHIBIT "B" fill •.- I 'M ok OK 6400- 7000) 4 ... .... ... . . ...... ......... Ae EXHIBIT "C" VOL �2 FACE 74-9 FINDINGS FOR ADOPTION OF DESCHUTES COUNTY GEOTHERMAL ELEMENT (References cited are listed in Section 8 of the Element) 1. The present treatment of geothermal resources in the Comprehensive Plan predates the Oregon Land Conservation and Development Commission's adoption of procedures for complying with Statewide Planning Goal 5 (as stipulated in OAR Chapter 660, Division 16), and will therefore be a compliance requirement during perioai.c reV.LCw. _••� Geothermal Element being adopted by Deschutes County is intended to comply with Division 16; recognizing, however, that the Element will require periodic amendment to incorporate new resource information as it becomes available over time. 2. Presently the County zoning ordinance does not comply with ORS 215.416 as it applies to geothermal activities. This statute stipulates that clear and objective standards must be in place for uses that are treated conditionally, which is the case for geothermal well drilling and facility siting. The Geothermal Element being adopted by Deschutes County is intended to comply with the requirements of ORS 215.416 by providing such standards. 1 r VOL 62 PAGE 750 3. The Pacific Northwest Electric Power Planning & Conservation Act of 1980 stipulates that local governments shall participate fully in the preparation and implementation of the regional power plan (reference Sections 4(g)(2)(c) and (4)(g)(3) of the Act). The subsequent April, 1983 Northwest Conservation & Electric Power Plan stipulates that local governments shall be fully involved in implementation of the Plan's measures affecting renewable resource development (reference Policies, p. 2-2, and Resource Options, p. 3-5, of the Plan). The Geothermal Element being adopted by Deschutes County represents the County's response to this regional mandate for local resource planning. 4. The adoption of the Geothermal Element is timely in view of increased interest in the County's geothermal resources during recent years. Since the early 1970's the number of geothermal well permits issued by the state inside the County has increased markedly, as shown in Tables 3.1 and 3.2 of the Element. This increased interest in local resources was interpreted by the Oregon Department of Geology & Mineral Industries in their 1983 statewide summary of geothermal activity as follows: "Drilling. . .was chiefly centered on Newberry volcano in the Central High Cascades. . .For the first time in the history of geothermal leasing in Oregon, the acreage leased by the U.S. Forest Service exceeded the acreage leased by the U.S. Bureau of Land Management. This. . .reflected continued investor 2 VOL 62 FACE 751 confidence in Newberry volcano and the Cascades. . .The emphasis on the Cascades and on Newberry volcano, which began in 1981, continued in the drilling activity of 1983. All of the holes drilled were in these two areas. Newberry volcano remained the most popular target, but the High Cascade Range, particularly the area just south of the silicic South Sister volcano and the area between Mt. Jefferson and Green Ridge, were also attracting drilling interest. . .The shift from BLM to USFS leases reflects a fundamental change in the emphasis of the geothermal industry in Oregon. Prior to 1980 and 1981, Basin and Range targets were predominant, but the discovery of high- temperature resources at Meager Creek in the British Columbia Cascades, and a similar discovery at Newberry volcano, demonstrated to explorationists the tremendous potential of the Cascades. It became apparent from the results at Newberry that high-temperature reservoirs could exist in youthful volcanic areas without significant hot spring activity. This conclusion implied that, even though most of the High Cascade Range lacks significant hot springs, large, undetected reservoirs could exist almost anywhere. This caused a rush to lease Cascade lands, especially lands next to silicic volcanic centers such as Crater Lake and the South Sister." (Priest, DOGAMI, 1984) 5. The U. S. Forest Service and the Oregon Energy Facility Siting Council (EFSC) are in the process of reexamining the geothermal components of their respective plans and rules. 3 VOL 62 PAGE ?52 The U.S. Forest Service has asked the County for countywide geothermal recommendations as early in 1985 as possible for consideration in updating of the Deschutes National Forest Plan; and EFSC has encouraged the County to submit its Newberry resource area recommendations as soon as possible for consideration in EFSC's review of the power plant suitability boundary surrounding the Newberry caldera. The Geothermal Element being adopted by Deschutes County represents, in total, a response to the Forest Service; and a response to EFSC in terms of Policy 10 of the Element as it relates to the Newberry resource area, 6. In accordance with OAR 660-16-020, the County has gone to extraordinary lengths to provide opportunities for public involvement in the preparation and adoption of the Element. Between December, 1983 and October, 1984 the Planning Commission conducted eight public workshops and two public hearings, with the Commission and County staff spending over 120 person -hours working with state and federal agencies, industry representatives, and individual citizens on the Element. Informational presentations were made on two occasions to industry groups, and involvement was encouraged by first-class notice to all federal geothermal leaseholders and applicants in the County. To date, a total of 13 news stories on the Element and the Newberry suitability boundary have appeared in the Bend Bulletin and Portland Oregonian. In addition, the Board of Commissioners have conducted five Ell C VOL 62 PACE 753 public hearings over a four-month period to enable ample time for final comments on the Element. A detailed chronology of public involvement during the Element's preparation and adoption is given in Appendix C of the Element. 7. The Element has been reviewed by the following agencies without objections being raised: U.S. Forest Service; U.S. Bureau of Land Management; and the Oregon Departments of Energy, Water Resources, Environmental Quality, Land Conservation & Development, Fish & Wildlife, and Geology & Mineral Industries. The Element has also been reviewed by the Planning Department of Lake County, California, where 215 MW of geothermal power is presently on-line, and 600 MW is under development; Lake County has regulated geothermal development since 1974. This review found the Element being adopted by Deschutes County to be: "An accurate description of the state-of-the-art in. . .geothermal steam development. . .and well suited to Deschutes County's geothermal resources. (Dellinger, Lake County Planning Dept., December 7, 1984) 8. The resource inventory within the Geothermal Element concludes that there are several significant resource areas with unconfirmed potential for supporting commercial end - uses, either for purposes of power generation or direct - utilization. The inventory, as shown in Figure 2.1 of the Element, concludes that the County has notable potentials Gq VOL 62 FACE754 for high-temperature power generation and low-temperature heat pump applications, with moderate -temperature direct utilization potential being uncertain without further exploration. Given these resource potentials, along with the increase in local drilling activity, and BPA's intent to solicit 10 MW of geothermal power in 1985, and the County's proximity to the California intertie transmission line, the County finds that the inventoried resources are significant enough to warrant application of the full Goal 5 process under OAR 660-16-005 through 660-16-010. 9. In examining conflicting uses pursuant to OAR 660-16-005, the County finds that the most serious potential conflicts center on the "industrialization" that accompanies high- temperature exploration and utilization (construction of wellpads, pipelines, generating equipment, support structures, transmission lines and access roads, and associated operational characteristics); and the incompatibility of this industrial -type activity in 14 areas that either possess significant natural values and/or are used intensively for recreation. The 14 areas are listed in Policy 10 of the Element, and detailed descriptions of the conflicts are given in Sections 4 and 5 of the Element. The County finds that the most serious consequences of such conflicts would be alteration and/or degradation of the natural environment from said industrial -type activities, and resulting adverse economic impacts to the recreational A VOL 62 PAGE 755 sector of the local economy from the diminished tourism that would follow such environmental changes. These negative impacts outweigh the potential benefits to be derived from geothermal development in the conflicting use areas, and therefore exploration and/or production is to be prohibited in said areas per Policy 10 as a means of limiting conflicts in accordance with OAR 660-16-010(3). Exclusion of geothermal exploration and/or production from said areas will not unduly impede countywide geothermal development inasmuch as the excluded areas, comprising approximately 241,000 acres, only represent roughly 26% of the total inventoried resource of approximately 936,000 acres countywide. The exclusion of approximately 26% of the County's presently known resource base is a reasonable conflict resolution mechanism in locations where natural and recreational values are most sensitive to alterations caused by the introduction of industrial -type geothermal activities. In this way geothermal development may proceed expeditiously in areas without conflicts, while areas with unacceptable negative impacts are clearly identified and avoided. 10. With regard to the 11,000 acre interior of the Newberry volcano the County finds that exclusion of geothermal exploration and production in this small portion of the 270,000 acre Newberry resource area is an appropriate balancing mechanism to limit conflicts between recreational uses and industrial -type geothermal activities. Within the 7 VOL 62 FACE756 56 overall Newberry resource area recreational activities are most concentrated inside the volcano's caldera; and, although there is in all likelihood a significant geothermal resource beneath the caldera, there is nonetheless a paramount need to prevent the creation of geothermal/ recreational conflicts that would violate the ecological and recreational integrity of the volcano's interior. This conflict resolution mechanism leaves approximately 96% of the total Newberry resource area surrounding.the caldera available for scientific research and commercial development. 11. The LaPine Pumice Company owns 157 acres of property situated in the center of the Newberry caldera between East and Paulina Lakes. This property represents approximately 1% of the 11,000 acres which lie inside the caldera. The property is currently designated as Forest in the Comprehensive Plan and is zoned Open Space. If allowed through a change to a zone that permits geothermal development, the owner has proposed to undertake an exploration program that, if successful, would culminate in the construction of a 10 megawatt (MW) geothermal power plant on the property. For purposes of the Goal 5 process the County finds that this would be an inappropriate use of the property, and that the exclusionary provision of Policy 10(a) of the Element should apply for the following reasons: Vol fit PACE 757 a. Industrial -type effects of resource exploration and utilization. The introduction of geothermal industrial -type activities inside the caldera will substantially alter the existing recreational character of the area surrounding such activities. Geothermal exploration and utilization on the subject property will involve: land clearance and grading for well pads, pipelines, and buildings; generation of heavy truck traffic needed for transporting drilling equipment, facility materials, and operational supplies; temporary visual alteration during intermittent use of drilling equipment for exploration, and for well maintenance and replacement over time; permanent visual alteration from the construction of generation facilities, support structures, and new power transmission lines; generation of industrial - grade solid wastes from exploration drilling and resource production; emission of air pollutants during exploratory drilling and resource production; and emission of noise during drilling and facility operations. Although noises from power plants can be limited by enclosing plants within structures, drilling noise cannot be similarly contained. A U.S. Forest Service assessment of potential noise impacts from geothermal development in the Newberry area has concluded that "there are potential impacts resulting from increased noise levels associated with all of 9 r VOL 62 PAGE 758 the various phases of geothermal development on people,. . .recreation use, wildlife, and the oppor- tunities for solitude on National Forest lands. An increase in noise level can result from the movement of trucks and other vehicles, drilling of wells, venting of steam, and other sources. Well drilling operations tend to be a principal source of noise. The operation of internal combustion engines, the racking of drill pipe, venting of compressed air, and steam venting can all cause excessive noise levels. This poses a health and safety hazard. . .and is objectionable to visitors to the area. There are areas adjacent to the Forest boundary, or adjacent to high -use recreation sites, where the noise levels would be a serious problem. . .Periodic noises due to well venting and drilling reach levels similar to the noise level of a jet aircraft takeoff. . .These noises may be continuous for three to six days. Well blowouts . . .if they occur, noise level may stay high for the length of time necessary to bring the well under control; this may be days, weeks, or even months. . .The engines operating compressors have a deep resonant sound that carries a considerable distance, especially at night. Drilling continues on a 24-hour a day basis during this period." (Fort Rock Ranger District, Deschutes National Forest, April, 1981) WE VOL 62 PAGE 759 b. Preservation of the ecological integrity of the caldera. The subject property is an integral part of the ecosystem that exists inside the caldera, including plant and animal communities, and related natural resources that do not recognize the limits of property lines. This ecological integrity would be violated by the introduction of geothermal industrial - type activities inside the caldera, by disrupting and/or degrading the area's natural qualities with the noise,. traffic, visual alterations, and potential emissions that are described above and detailed in Sections 4 and 5 of the Element. Of particular concern in this regard are the following features of the caldera: 1) protection of air quality, which would be jeopardized by pollutant emissions during drilling and resource production, such as the release of hydrogen sulfide gas which occurred at the USGS well approximately one-half mile south of the subject property; 2) protection of wildlife from noise and habitat degradation, including a nesting site for a pair of federally -protected bald eagles located approximately one-half mile north of the subject property on the shorline of East Lake; and 3) protection of rare plants from habitat degradation, such as the Pumice Grape Fern (Botrychium Pumicola) which is known to occur in Oregon only at Newberry Meadow (approximately one-half mile from the subject_ 11 VOL 62 PAGE 760 property), Broken Top Mountain and crater Lake, and which has been recommended to the Forest Service for protection as an endangered plant (Garrett, December 28, 1984). C. Geothermal industrial -type activities are incompatible with surrounding intensive recreation. The Newberry caldera is one of the County's most heavily -used recreation areas. Within a 3 mile radius of the subject parcel there are: 8 public campgrounds with 318 campground units and associated picnic facilities; 1 picnic area outside the campgrounds; 3 boat ramps; 2 private resorts; 6 private vacation residences; approximately 100 miles of trails used for hiking, horseback riding, snowmobiling, and cross-country skiing; and 2 scenic observation points (Ft. Rock Ranger District, Deschutes National Forest, 1983). The tourist visitation in the caldera is summarized below on an average annual basis for the years 1979 through 1983 (Mohla, Deschutes National Forest, January 9, 1985): 12 d. Activities Inside the Caldera Camping Organization Picnicking Resorts Recreation residence Cross-country skiing Nature study - education Walking Viewing interpretive & scenery Auto & motorized travel Snowmobiling Hiking and walking Bicycling Horseback riding Boating Fishing Misc.. games Total VOL 62 PACE 761 Average Annual Visitor Days 94,700 300 3,400 22,100 1,400 2,100 3,300 9,400 5,500 9,000 14,600 5,800 400 3,400 41,100 82,000 2,500 300,000 The County finds that introduction of the industrial - type geothermal activities described above would constitute a serious degradation of the natural values that currently underpin these predominant recreational uses within the caldera. In reaching this conclusion the County has also taken note of the adverse circumstances that exist with geothermal power plants in Lake County, Oregon (Cannon, Lake County Planning Dept., December 14 and 28, 1984), and the experience at the California Geysers vis-a-vis recreation incompatibilities (Dellinger, Lake County Planning Dept., December 27, 1984). Subject property size is below industry norm. Aside from conflicts with surrounding recreational uses, geothermal development on a parcel as small as the 13 VOL 62 PACE 762 subject property would be significantly contrary to industry norms, where power generation projects are normally supplied from well fields covering several hundred, if not thousands, of acres. This is illustrated by Table 3.3 in the Element, showing the average size of approved federal geothermal leases in Deschutes County to be 6,132 acres. Because of its extremely small size, the 157 acre subject parcel would obviously require an unorthodox concentration of facilities not found in typical geothermal power projects. Moreover, despite the ability to visually screen some activities inside the parcel's pumice cone, its extremely small size would impede the establishment of natural buffers on the property's periphery to limit off-site impacts, as in the case of noise. e. Potential adverse economic impacts. The County finds that the potential economic benefits that may accrue from a 10 MW power plant on the subject property are too small in comparison to the existing economic benefits from tourism in the caldera, to justify jeopardizing the ecosystem that presently supports recreation in the caldera. A 10 MW facility would create no more than 5 permanent jobs (FERC, 1981) which would represent a total annual payroll of no more than $250,000. Alternatively, the average annual recreational use of 300,000 visitor days in the caldera 14 VOL 62 PACE 763 can be equated to approximately $12 million annually in the form of wages, salaries, and rental income spent by visitors on equipment, supplies, lodging and other services. The amount of work generated by this level of tourism is approximately 550 jobs in 107 of the 120 sectors of the local economy (Mohla, Deschutes National Forest, January 9, 1985). After allowing for indirect employment effects by doubling the power plant jobs and payroll, the local economy would still suffer a net loss, if caldera tourism were to fall by only 10% as a result of geothermal industrialization in the area. f. Protection of caldera hydrology. Within a 2-1/2 mile radius of the subject property there are 22 groundwater wells supplying over 3 million gallons annually for recreational visitors to the caldera. This groundwater system is related to the caldera's surface water resources, including two lakes, springs, and several creeks. The County finds that the potential for hydrological impacts from geothermal activities on the subject property represents an unjustified risk to current hydrological qualities in the caldera. In reaching this conclusion the County has also taken note of the adverse hydrological circumstances that may exist with the 2 MW geothermal power plant near Lakeview, Oregon (Gannett, Oregon Water Resources Dept., December 27, 1984; and Cannon, Lake County Planning Dept., December 14, 1984). 15 ' vo! 62 FACE 764 g. Power transmission line improvement. If the subject property is to be developed for power generation it will be necessary to enlarge the existing power transmission line serving the caldera. Assuming 1OM W of output, this would require line capacity on the order of 30 kilovolts, which will necessitate installation of new lines on the poles in the existing utility right-of-way. The County finds that this type of construction activity and permanent enlargement of a highly visible utility facility are contrary to the preservation of natural aesthetic values inside the caldera, and illustrative of the type of negative off- site impacts that would accrue to other portions of the caldera from geothermal development on the subject property. h. Year-round access. If geothermal power generation were to be developed on the subject property, such a use would create a need for year-round vehicular access inside the caldera, which is presently not available from the responsible land management or transportation agencies. Moreover, the introduction of vehicles inside the caldera during winter months would significantly alter the area's present winter recreation values. 16 : vol. 62 PACE 765 i. Promotion of tourism contrary to geothermal industry practice. The subject property owner has asserted that tourism will be increased by location of a geothermal power plant inside the caldera, and that such visitation will be encouraged on the subject property if geothermal development is allowed. The County finds that this is contrary to general industry practice, which discourages visitation by the general public at facility sites for purposes of safety and operating efficiency. (Dellinger, Lake County Planning Dept., December 27, 1984) j. Proposal contrary to Deschutes Comprehensive Plan poli- cies. The proposal to develop geothermal resources on the subject property is contrary to the following Comprehensive Plan policies:" No. 15, Rural Development, which states that "construction on open lands shall be in a manner least intrusive to the aesthetic and natural character of those lands and neighboring lands;" No. 4, Economy, which states that "consistent with policies in the Recreation and Open Space chapters, cooperation with federal and state agencies shall be sought by the County in preserving and developing, as appropriate, scenic and recreational resources;" and No. 6, Open Spaces, which states that "because management of state and federal lands affects areas under the County's jurisdiction and vice versa, better coordination of land -use planning between the 17 VOL 62 PAGE 766 County, U.S. Forest Service,. . .and other agencies shall be sought." The County finds that the proposal is contrary to Rural Development Policy 15 because it would be extremely intrusive to the aesthetic and natural character of the caldera as detailed above; that it would be contrary to Economy Policy 4 because of the negative economic impacts resulting from scenic and recreational degradation detailed above; and that it would be contrary to Open Space Policy 6 because industrialization of a small parcel completely surrounded by federal recreation lands would be clearly inconsisterit with the objectives of coordinated land - use planning. k. Proposal contrary to objectives of wildlife refuge agreement. The County finds that the proposed use of the subject property is contrary to the intent of the August 1, 1979 agreement between the Oregon Department of Fish & Wildlife and the Deschutes National Forest establishing a wildlife refuge in the caldera, in view of the agreement's purpose of "protecting all wildlife species for added enjoyment of the public" (Mathisen, Dept. of Fish & Wildlife). As indicated previously, the introduction of industrial -type activities in the caldera would be adverse to existing wildlife conditions, and therefore, contrary to the principles of a refuge (Mohla, Deschutes National Forest, January 9, 1985). In VOL 62 PACE767 s7 1. Proposal contrary to U.S. Forest Service policy. The County finds that the proposed use of the subject property is contrary to existing U.S. Forest Service policy as contained in the Deschutes National Forest Land and Resource Management Plan. Under this Plan the central interior of the caldera has been designated as Intensive Recreation and Undeveloped Recreation areas, and has been excluded from the federal geothermal leasing program. The Deschutes National Forest Supervisor has indicated that these management policies are likely to remain in the Forest's 1985 update of its Plan (Mohla, Deschutes National Forest, November 21, 1984), and that it views the proposal unfavorably in light of its adverse impacts (Mohla, January 9, 1985). M. Proposal contrary to U.S. Park Service policy. The County finds that the proposed use of the subject property is contrary to the U.S. Park Service's 1975 designation of Newberry volcano as a National Natural Landmark under the Historic Sites Act of 1935, in that such designation is intended to "encourage the preservation of significant areas." The National Park Service has provided this information to the County "to ensure that nationally significant features are considered in planning decisions, and not inadvertantly damaged or destroyed through lack of knowledge of their existence or significance" (Atkins, National Park 19 VOL 62 Face 768 Service, December 19, 1984). The County finds that the Park Service's criteria of national significance is based largely on an area's natural integrity, making continued integrity essential to preservation of landmark values. Natural landmarks should be managed in such a way as to pose no threat to the perpetuation of the designated features, and industrial -type activities in the vicinity of these features would clearly violate the integrity of the natural values represented by the landmark. n. Proposal contrary to Oregon Legislative policy. The County finds that the proposed use of the subject property is contrary to House Joint Resolution 31 enacted by the 1975 Oregon Legislature, in that the subject property is within an area declared by the Resolution to be unsuitable for power plants because "preservation of the recreation, scenic and historic areas of Newberry crater. . .is of vital importance to the people of the state of Oregon." Introduction of industrial -type geothermal activities into the caldera would violate such preservation efforts. o. Proposal contrary to Oregon Energy Facility Siting Council Rules. The County finds that the proposed use of the subject property would be inconsistent_ with OAR 345-40-030 which establishes the Newberry caldera area as unsuitable for geothermal power plants. Although 20 r VOL 62 PACE 769 EFSC's rule technically applies only to power plants greater than 25 MW in capacity, the siting of a 10 MW plant in the caldera would clearly be inconsistent with the overall purpose of EFSC's rule, which is to protect environmentally -sensitive areas from the industriali- zation that accompanies high-temperature geothermal development. p. Proposal contrary to Bonneville Power Administration environmental policies. The County finds that the proposed use of the subject property is contrary to the Bonneville Power Administration's environmental policies as follows: Section 917.4(d) of the BPA Environmental Manual, which states that "adverse effects include any action resulting in the reduction or deterioration of the environmental and cultural values for which an area has been designated. Values of such areas include but are not limited to: 1) cultural, scenic, historical, ecological, air and atmospheric, water, or archeological resources; 2) provide for fish and wildlife food and habitat, outdoor recreation, and human occupancy and use." Section 917.6 further states that "if a practicable alternative to the proposed action and any of its associated adverse effects exists, it shall be preferred" (emphasis added). Adverse effects are further defined by Section 917.7 as "any action which could alter or 21 r VOL 62 PAGE 770 V destroy the values of these areas. . .which include but are not limited to. . .introduction of visual, auditory, or other intrusions which would be incompatible with the environmental or cultural values for which the area was established" (BPA, November 1, 1981). The County finds that the proposed use of the subject property would create adverse effects as defined by BPA, and more importantly per Section 917.7, that there are ample alternative locations for the proposed power plant in the 259,000 acres of the Newberry resource area that are not being excluded from exploration and production. q. Proposal contrary to Oregon Land Conservation & Develo ment Commission rule. Based on the foregoing inconsistencies with federal and state policies and plans, the County finds that the proposal is contrary to Oregon Statewide Planning Goal 2, as contained in OAR 660-15-000(2), which states that "County, state, and federal agency. . .plans and actions related to land -use shall be consistent." Clearly, a County decision to permit geothermal exploration and/or production on the subject property would be inconsistent with the plans and policies of the U.S. Forest Service, U.S. Park Service, Oregon Legislature, Oregon Dept. of Fish & Wildlife, Oregon Energy Facility Siting Council, and the Bonneville Power Administration. 22 f VOL 62 FACE 771 r. Proposal contrary to Bonneville Power Administration geothermal solicitation criteria. The only purchaser of power from the proposed plant identified to date by the property owner is BPA. However, selection of the subject property for a BPA project is not only contrary to the BPA environmental policies cited above, but also contrary to the BPA solicitation scheduled for May, 1985, in that BPA will require candidate sites to "have an initial capacity of 10 MW and be capable of expansion to at least 100 MW" (emphasis added) (Fuqua, BPA, November 16, 1984). The subject property is therefore not an eligible candidate under the BPA solicitation because EFSC will not issue a site certificate for plants larger than 25 MW in capacity inside the caldera. Moreover, given typical high- temperature well spacing requirements of 30-40 acres per well and a liberal assumption of 10 MW of steam production per well, the subject property is substantially inadequate in size to reasonably accommodate an ultimate wellhead capacity of 100 MW - In W.In the absence of BPA eligibility, the County is unaware of any purchaser of output from a plant on the subject property. 12. The Geothermal Element being adopted complies with the applicable Statewide Planning Goals as follows: 23 VOL 62 PAG: �2 a. Goal 1, Citizen Involvement. Adequate opportunities for citizens to be involved in all phases of the preparation and adoption of the Geothermal Element have been provided as described above in Paragraph 6, and as detailed in Appendix C of the Element. b. Goal 2, Land -Use Planning. The Geothermal Element is based upon the facts and analysis contained in Sections 1 through 7 of the Element, including identification of issues and problems, an inventory of the resource, evaluation of alternative courses of action, and ultimate policy choices. Preparation and adoption of the Element has been coordinated with all affected agencies as indicated above in Paragraph 7, and as detailed in Appendix C of the Element. C. Goal 3, Agricultural Lands. The Element preserves and maintains agricultural lands by adherence to the permitted uses in exclusive farm use zones as stipulated by ORS 215.213. d. Goal 4, Forest Lands. The Element conserves forest lands for forest uses by identifying conflicting uses, and limiting such conflicts through exclusion of geothermal exploration and/or production in the specific areas listed in Policy 10 of the Element. 24 vol 62 FACE 773 e. Goal 5, Open Spaces, Scenic and Historic Areas, and Natural Resources. The Element conserves open space and protects natural and scenic resources through compliance with OAR Chapter 660, Division 16. Goal 5 compliance is discussed in detail in Paragraphs 6 through 10 above, and Sections 1 through 7 of the Element. f. Goal 6, Air, Water, and Land Resources Quality. The Element seeks to maintain and improve the quality of the air, water, and land resources of the County through geothermal development standards that do not permit development to violate, or threaten to violate, applicable state and federal environmental quality statutes and standards. The pertinent policies and standards are contained in Section 7 of the Element. g. Goal 8, Recreational Needs. The Element seeks to satisfy the recreational needs of the County's citizens and visitors by identifying those recreational areas where conflicts will occur with geothermal development, and by providing policies and standards for limiting such conflicts. The pertinent policies and standards are contained in Section 7 of the Element. 25 �r f VOL 62 PAGE 7 ! 4 h. Goal 9, Economy. The Element seeks to diversify and improve the local economy by generally supporting geothermal development. This support is specifically expressed in Policies 5 through 9 in Section 7 of the Element. i. Goal 11, Public Facilities and Services. The Element supports a timely, orderly, and efficient arrangement of public facilities and services in resource areas through Policies 13 and 14 of the Element, and conditional use standards contained in Section 7 of the Element. 26