1.This Act may be cited as the
Geothermal Production Expansion Act of
2010
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2.Congress finds that—
(1)it is in the best interest of the United
States to develop clean renewable geothermal energy;
(2)development of
that energy should be promoted on appropriate Federal land;
(3)under the Energy
Policy Act of 2005 (42 U.S.C. 15801 et seq.), the Bureau of Land Management is
authorized to issue 3 different types of noncompetitive leases for production
of geothermal energy on Federal land, including—
(A)noncompetitive
geothermal leases to mining claim holders that have a valid operating
plan;
(B)direct use
leases; and
(C)leases on parcels
that do not sell at a competitive auction;
(4)Federal geothermal
energy leasing activity should be directed toward persons seeking to develop
the land as opposed to persons seeking to speculate on geothermal resources and
artificially raising the cost of legitimate geothermal energy
development;
(5)developers of geothermal energy on Federal
land that have invested substantial capital and made high risk investments
should be allowed to secure a discovery of geothermal energy resources;
and
(6)successful
geothermal development on Federal land will provide increased revenue to the
Federal Government, with the payment of production royalties over
decades.
3.Noncompetitive leasing
of adjoining areas for development of geothermal resourcesSection 4(b) of the Geothermal Steam Act of
1970 (30 U.S.C. 1003(b)) is amended by adding at the end the following:
(4)
(A)In this paragraph:
(i)Fair market
value per acreThe term
fair market value per acre means a dollar amount per acre
that—
(I)except as provided
in this clause, shall be equal to the market value per acre as determined by
the Secretary under regulations issued under this paragraph;
(II)shall be
determined by the Secretary with respect to a lease under this paragraph, by
not later than the end of the 90-day period beginning on the date the Secretary
receives an application for the lease; and
(III)shall be not
less than the greater of—
- (aa)4
times the median amount paid per acre for all land leased under this Act during
the preceding year; or
- (bb)$50.
(ii)The term
industry standards means the standards by which a qualified
geothermal professional assesses whether downhole or flowing temperature
measurements with indications of permeability are sufficient to produce energy
from geothermal resources, as determined through flow or injection testing or
measurement of lost circulation while drilling.
(iii)The term qualified Federal land means
land that is otherwise available for leasing under this Act.
(iv)Qualified
geothermal professionalThe
term qualified geothermal professional means an individual who is
an engineer or geoscientist in good professional standing with at least 5 years
of experience in geothermal exploration, development, or project
assessment.
(v)The term
qualified lessee means a person that may hold a geothermal lease
under part 3202.10 of title 43, Code of Federal Regulations, as in effect on
the date of enactment of the Geothermal
Production Expansion Act of 2010.
(vi)The term
valid discovery means a discovery of a geothermal resource by a
new or existing slim hole or production well, that exhibits downhole or flowing
temperature measurements with indications of permeability that are sufficient
to meet industry standards.
(B)An
area of qualified Federal land that adjoins other land for which a qualified
lessee holds a legal right to develop geothermal resources may be available for
a noncompetitive lease under this section to the qualified lessee at the fair
market value per acre, if—
(i)the area of
qualified Federal land—
(I)consists of not
less than 1 acre and not more than 640 acres; and
(II)is not already
leased under this Act or nominated to be leased under subsection (a);
(ii)the qualified
lessee has not previously received a noncompetitive lease under this paragraph
in connection with the valid discovery for which data has been submitted under
clause (iii)(I); and
(iii)sufficient
geological and other technical data prepared by a qualified geothermal
professional has been submitted by the qualified lessee to the applicable
Federal land management agency that would lead individuals who are experienced
in the subject matter to believe that—
(I)there is a valid
discovery of geothermal resources on the land for which the qualified lessee
holds the legal right to develop geothermal resources; and
(II)that thermal
feature extends into the adjoining areas.
(C)Determination of
fair market value
(i)The Secretary shall—
(I)publish a notice
of any request to lease land under this paragraph;
(II)determine fair
market value for purposes of this paragraph in accordance with procedures for
making those determinations that are established by regulations issued by the
Secretary;
(III)provide to a qualified lessee and publish
any proposed determination under this subparagraph of the fair market value of
an area that the qualified lessee seeks to lease under this paragraph;
(IV)provide to the
qualified lessee the opportunity to appeal the proposed determination during
the 30-day period beginning on the date that the proposed determination is
provided to the qualified lessee; and
(V)provide to any
interested member of the public the opportunity to appeal the proposed
determination in accordance with the process established under parts 4 and
1840, and section 3200.5, of title 43, Code of Federal Regulations (as in
effect on the date of enactment of the Geothermal Production Expansion Act of 2010)
during the 30-day period beginning on the date that the proposed determination
is published.
(ii)After publication of a notice of request to lease land
under this paragraph, the Secretary may not accept under subsection (a) any
nomination of the land for leasing unless the request has been denied or
withdrawn.
(D)Not
later than 180 days after the date of enactment of the
Geothermal Production Expansion Act of
2010, the Secretary shall issue regulations to carry out this
paragraph.
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