30 U.S.C. § 1005 : US Code - Section 1005: Lease term and work commitment requirements
Search 30 U.S.C. § 1005 : US Code - Section 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) of this
section 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) of this section.
(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) of this section 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) of this section, 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) of this section.
(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.).