§ 1005. Lease term and work commitment requirements

2,385 words·~11 min read·/usc/title-30/section-1005

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(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.)

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68 Stat. 708
Pub. L. 91–581, § 6
84 Stat. 1568
Pub. L. 100–443
102 Stat. 1766
Pub. L. 109–58, title II
119 Stat. 668
act Aug. 13, 1954, ch. 730
Pub. L. 109–58
Pub. L. 100–443, § 2(b)
Pub. L. 100–443, § 3
Pub. L. 100–443, § 9
102 Stat. 1771
section 101(h) of Public Law 99–591
100 Stat. 3341–264
100 Stat. 3341–266
Pub. L. 99–500, § 101(h) [title I, § 115]
100 Stat. 1783–242
Pub. L. 99–591, § 101(h) [title I, § 115]
100 Stat. 3341–242
Pub. L. 106–510, § 3(a)(2)
114 Stat. 2363
Public Law 91–581
84 Stat. 1566
Public Law 98–473
98 Stat. 1837
Public Law 99–190
99 Stat. 1267

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cites case law

§ 1005

Lease term and work commitment requirements

Fed. Reg.×16

Stat.×7

Bills×5

Stat. Comp.×2

U.S.C.×2

U.S.C.§ 1001

U.S.C.§ 521

Stat.68 Stat. 708

Pub. L.Pub. L. 91–581, § 6

Stat.84 Stat. 1568

Pub. L.Pub. L. 100–443

Stat.102 Stat. 1766

Cites 30 · showing 7Cited by 32 across 5 sources