§1005. Lease term and work commitment requirements
(a) In general
(1) Primary term
A geothermal lease shall be for a primary term of 10 years.
(2) Initial extension
The Secretary shall extend the primary term of a geothermal lease for 5 years if, for each year after the 10th year of the lease—
(A) the Secretary determined under subsection (b) that the lessee satisfied the work commitment requirements that applied to the lease for that year; or
(B) the lessee paid in annual payments accordance with subsection (c).
(3) Additional extension
The Secretary shall extend the primary term of a geothermal lease (after an initial extension under paragraph (2)) for an additional 5 years if, for each year of the initial extension under paragraph (2), the Secretary determined under subsection (b) that the lessee satisfied the minimum work requirements that applied to the lease for that year.
(b) Requirement to satisfy annual minimum work requirement
(1) In general
The lessee for a geothermal lease shall, for each year after the 10th year of the lease, satisfy minimum work requirements prescribed by the Secretary that apply to the lease for that year.
(2) Prescription of minimum work requirements
The Secretary shall issue regulations prescribing minimum work requirements for geothermal leases, that—
(A) establish a geothermal potential; and
(B) if a geothermal potential has been established, confirm the existence of producible geothermal resources.
(c) Payments in lieu of minimum work requirements
In lieu of the minimum work requirements set forth in subsection (b)(2), the Secretary shall by regulation establish minimum annual payments which may be made by the lessee for a limited number of years that the Secretary determines will not impair achieving diligent development of the geothermal resource, but in no event shall the number of years exceed the duration of the extension period provided in subsection (a).
(d) Transition rules for leases issued prior to August 8, 2005
The Secretary shall by regulation establish transition rules for leases issued before August 8, 2005, including terms under which a lease that is near the end of its term on August 8, 2005, may be extended for up to 2 years—
(1) to allow achievement of production under the lease; or
(2) to allow the lease to be included in a producing unit.
(e) Geothermal lease overlying mining claim
(1) Exemption
The lessee for a geothermal lease of an area overlying an area subject to a mining claim for which a plan of operations has been approved by the relevant Federal land management agency is exempt from annual work requirements established under this chapter, if development of the geothermal resource subject to the lease would interfere with the mining operations under such claim.
(2) Termination of exemption
An exemption under this paragraph expires upon the termination of the mining operations.
(f) Termination of application of requirements
Minimum work requirements prescribed under this section shall not apply to a geothermal lease after the date on which the geothermal resource is utilized under the lease in commercial quantities.
(g) Cooperative or unit plan for drilling operations; extension of term; renewal
Any lease for land on which, or for which under an approved cooperative or unit plan of development or operation, actual drilling operations were commenced prior to the end of its primary term and are being diligently prosecuted at that time shall be extended for five years and so long thereafter, but not more than thirty-five years, as geothermal steam is produced or utilized in commercial quantities. If, at the end of such extended term, steam is being produced or utilized in commercial quantities and the lands are not needed for other purposes, the lessee shall have a preferential right to a renewal of such lease for a second term in accordance with such terms and conditions as the Secretary deems appropriate.
(h) “Produced or utilized in commercial quantities” defined
Except as otherwise provided for in this section, for purposes of this section the term “produced or utilized in commercial quantities” means the completion of a well producing geothermal steam in commercial quantities. Such term shall also include the completion of a well capable of producing geothermal steam in commercial quantities so long as the Secretary determines that diligent efforts are being made toward the utilization of the geothermal steam.
(i) Principles for location of minerals under mining laws when minerals are not associated with geothermal resources
Minerals locatable under the mining laws of the United States in lands subject to a geothermal lease issued under the provisions of this chapter which are not associated with the geothermal resources of such lands as defined in section 1001(c) of this title shall be locatable under said mining laws in accordance with the principles of the Multiple Mineral Development Act (68 Stat. 708; found in 30 U.S.C. 521 et seq.).
( Pub. L. 91–581, § 6 , Dec. 24, 1970 , 84 Stat. 1568 ; Pub. L. 100–443 , §§ 2(b), 3, Sept. 22, 1988 , 102 Stat. 1766 ; Pub. L. 109–58, title II , §§ 231, 236(1), Aug. 8, 2005 , 119 Stat. 668 , 671.)
Editorial Notes
References in Text
The Multiple Mineral Development Act, referred to in subsec. (i), is act Aug. 13, 1954, ch. 730, 68 Stat. 708, which is classified principally to chapter 12 (§ 521 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 521 of this title and Tables.
Codification
August 8, 2005, referred to in introductory provisions of subsec. (d), was in the original “the date of the enactment of this subsection” and “the date of enactment of this subsection”, which was translated as meaning the date of enactment of Pub. L. 109–58, which substantially amended this section, to reflect the probable intent of Congress.
Amendments
2005—Pub. L. 109–58 inserted section catchline, added subsecs. (a) to (f), redesignated former subsecs. (c), (d), and (f) as (g), (h), and (i), respectively, substituted “geothermal resources” for “geothermal steam and associated geothermal resources” in subsec. (i), and struck out former subsecs. (a), (b), (e), and (g) to (j), which related to primary and continuation terms, renewals, conversions to mineral leases, five-year extensions, bona fide effort requirement for extensions, payments in lieu of commercial quantities production, and significant expenditure, respectively.
1988—Subsec. (d). Pub. L. 100–443, § 2(b), amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: “For purposes of subsection (a) of this section, production or utilization of geothermal steam in commercial quantities shall be deemed to include the completion of one or more wells producing or capable of producing geothermal steam in commercial quantities and a bona fide sale of such geothermal steam for delivery to or utilization by a facility or facilities not yet installed but scheduled for installation not later than fifteen years from the date of commencement of the primary term of the lease.”
Subsecs. (g) to (j). Pub. L. 100–443, § 3, added subsecs. (g) to (j).
Statutory Notes and Related Subsidiaries
Consistency Provision
Pub. L. 100–443, § 9, Sept. 22, 1988, 102 Stat. 1771, provided that:
“To the extent that any provision in this Act [see Short Title of 1988 Amendment note set out under section 1001 of this title] is inconsistent with the provisions of section 115(2) of title I of section 101(h) of Public Law 99–591 (100 Stat. 3341–264 through 100 Stat. 3341–266) [set out below], this Act shall be deemed to supersede the provisions of such section.”
Extension of Lease; Listing, Monitoring and Protection of Significant Thermal Features in National Park System; Factors Considered in Issuing or Denying Leases; Effect on Other Provisions
Pub. L. 99–500, § 101(h) [title I, § 115], Oct. 18, 1986, 100 Stat. 1783–242, 1783–264, and Pub. L. 99–591, § 101(h) [title I, § 115], Oct. 30, 1986, 100 Stat. 3341–242, 3341–264, as amended by Pub. L. 106–510, § 3(a)(2), (b)(2), Nov. 13, 2000, 114 Stat. 2363, provided that:
“(1) The primary term of any geothermal lease in effect as of July 27, 1984, issued pursuant to the Geothermal [Steam] Act of 1970 (Public Law 91–581, 84 Stat. 1566, 30 U.S.C. 1001–1025) is hereby extended to December 31, 1988, if the Secretary of the Interior finds that—