Section 13-183-58 - Waste prevention, offset wells and geothermal by-products(a) All mining leases shall be subject to the condition that the lessee shall, in conducting exploratory development and producing operations, use all reasonable precautions to prevent waste and conserve and provide for optimum use of geothermal resources and other natural resources found or developed in the leased lands.(b) If any waste of geothermal resources or by-products result from the willful misconduct or negligence of the operator or if the operator fails to take corrective action within a reasonable time after being notified in writing by the chairperson, the board shall determine the value of the loss or waste and the compensation due to the board, using the method for computing royalties set out in § 13-183-31(b) (c). Payment for the losses will be paid when billed. The board s determination of the value of the waste may be appealed as provided in § 13-183-5.(c) In the event any well located on other than state or reserved land is draining geothermal resources in commercial quantities from any land leased from the State, the board may notify the lessee in writing to drill an offset well thereto, and within one hundred twenty days from the date of the notice or the additional time as may be allowed by the chairperson, the lessee shall commence operations for the drilling of an offset well on the leased land to the same zone as that zone from which the well is producing geothermal resources or shall unitize with the well that is draining state land or pay to the State compensatory royalty. For the purpose of this section an offset well shall mean a well which a reasonably prudent geothermal operator would drill under similar circumstances. There shall be no obligation to unitize or pay compensatory royalty. To the extent provided by law, the board may require unitization of leases and lands involved.(d) Subject to lessee's right to surrender a mining lease, where the board determines that production, use, or conversion of geothermal resources is susceptible of producing a by-product or by-products, including demineralized water contained in or derived from the geothermal resources and deemed suitable for beneficial use in accordance with chapter 177, Hawaii Revised Statutes, the board may require substantial production or use thereof unless the board determines that beneficial production or use would not be in the interest of conservation of natural resources, nor economically feasible or would not otherwise be in the public interest.[Eff. JUN 22 1981] (Auth: HRS § 182-14) (Imp: HRS §§ 178-3, 182-7, 182-9.5)