§ 1005. — Duration of leases.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 30USC1005]
TITLE 30--MINERAL LANDS AND MINING
CHAPTER 23--GEOTHERMAL STEAM AND ASSOCIATED GEOTHERMAL RESOURCES
Sec. 1005. Duration of leases
(a) Primary and continuation terms
Geothermal leases shall be for a primary term of ten years. If
geothermal steam is produced or utilized in commercial quantities within
this term, such lease shall continue for so long thereafter as
geothermal steam is produced or utilized in commercial quantities, but
such continuation shall not exceed an additional forty years.
(b) Renewal
If, at the end of such forty years, steam is 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 forty-year term in accordance with such terms and
conditions as the Secretary deems appropriate.
(c) 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.
(d) ``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.
(e) Extension of term for byproduct production; conversion of geothermal
lease to mineral lease: application, time for completion of
location of mineral claims, and Federal agency terms and
conditions when conversion affects lands withdrawn or acquired
for Federal agency
Leases which have extended by reasons of production, or which have
produced geothermal steam, and have been determined by the Secretary to
be incapable of further commercial production and utilization of
geothermal steam may be further extended for a period of not more than
five years from the date of such determination but only for so long as
one or more valuable byproducts are produced in commercial quantities.
If such byproducts are leasable under the Mineral Leasing Act of
February 25, 1920, as amended (30 U.S.C. 181, et seq.), or under the
Mineral Leasing Act for Acquired Lands (30 U.S.C. 351-358), and the
leasehold is primarily valuable for the production thereof, the lessee
shall be entitled to convert his geothermal lease to a mineral lease
under, and subject to all the terms and conditions of, such appropriate
Act upon application at any time before expiration of the lease
extension by reason of byproduct production. The lessee shall be
entitled to locate under the mining laws all minerals which are not
leasable and which would constitute a byproduct if commercial production
or utilization of geothermal steam continued. The lessee in order to
acquire the rights herein granted him shall complete the location of
mineral claims within ninety days after the termination of the lease for
geothermal steam. Any such converted lease or the surface of any mining
claim located for geothermal byproducts mineral affecting lands
withdrawn or acquired in aid of a function of a Federal department or
agency, including the Department of the Interior, shall be subject to
such additional terms and conditions as may be prescribed by such
department or agency with respect to the additional operations or
effects resulting from such conversion upon adequate utilization of the
lands for the purpose for which they are administered.
(f) 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 steam and
associated 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.).
(g) Five-year extensions; conditions
(1) Any geothermal lease issued pursuant to this chapter for land on
which, or for which under an approved cooperative or unit plan of
development or operation, geothermal steam has not been produced or
utilized in commercial quantities by the end of its primary term, or by
the end of any extension provided by subsection (c) of this section, may
be extended for successive 5-year periods, but totaling not more than 10
years, if the Secretary determines that the lessee has met the bona fide
effort requirement of subsection (h) of this section, and either of the
following:
(A) the \1\ payment in lieu of commercial quantities production
requirement of subsection (i) of this section.
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\1\ So in original. Probably should be capitalized.
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(B) The significant expenditure requirement of subsection (j) of
this section.
(2) A lease extended pursuant to paragraph (1) shall continue so
long thereafter as geothermal steam is produced or utilized in
commercial quantities, but such continuation shall not exceed an
additional 25 years, for a total of 50 years, if such lease was also the
subject of an extension under subsection (c) of this section or an
additional 30 years, for a total of 50 years, if such lease is only
extended pursuant to paragraph (1).
(3) If, at the end of either 50-year term referred to in paragraph
(2), geothermal 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. For purposes of this paragraph only, the term ``produced or
utilized in commercial quantities'' means a bona fide sale or the use of
geothermal steam by the lessee to generate electricity in marketable
quantities.
(h) Bona fide effort
To meet the bona fide effort requirement referred to in subsection
(g)(1) of this section the lessee must submit a report to the Secretary
demonstrating bona fide efforts (as determined by the Secretary) to
produce or utilize geothermal steam in commercial quantities for such
lease, given the then current economic conditions.
(i) Payments in lieu of commercial quantities production
(1) To meet the payments in lieu of commercial quantities production
requirement referred to in subsection (g)(1)(A) of this section the
lessee must agree to the modification of the terms and conditions of the
lease to require annual payments to the Secretary in accordance with
this subsection.
(2) Payments under this subsection shall commence with the first
year of the extension. Payments shall be equal to the following:
(A) In each of the first through the fifth payment years, at
least $3.00 per acre or fraction thereof, of lands under lease.
(B) In each of the sixth through the tenth payment years, at
least $6.00 per acre or fraction thereof, of lands under lease.
(3) Failure to make the payments required by this subsection shall
subject the lease to cancellation.
(4) No payments made pursuant to this subsection shall be required
after the earlier of the following:
(A) The date of termination of the lease.
(B) The date of relinquishment of the lease.
(C) The date geothermal steam is produced or utilized in
commercial quantities from the lease.
(5) No payments made pursuant to this subsection shall be used to
reduce rentals or future production royalties.
(j) Significant expenditure
(1) To meet the significant expenditure requirement referred to in
subsection (g)(1)(B) of this section the lessee must demonstrate to the
Secretary on an annual basis during an extension that a significant
expenditure of funds is being made on the lease.
(2) The following expenditures made by the lessee shall qualify as
meeting the requirement of this subsection:
(A) Expenditures to conduct actual drilling operations on the
lease, such as for exploratory or development wells, or geochemical
or geophysical surveys for exploratory or development wells.
(B) Expenditures for road or generating facilities construction
on the lease.
(C) Architectural or engineering services procured for the
design of generating facilities to be located on the lease.
(D) Environmental studies required by State or Federal law.
(3) Expenditures shall be equal to the following:
(A) In each of the first through the fifth years, at least
$15.00 per acre or fraction thereof, of lands under lease.
(B) In each of the sixth through the tenth years, at least
$18.00 per acre or fraction thereof, of lands under lease.
(4) Failure to make the expenditures required by this subsection
shall subject the lease to cancellation.
(5) No expenditures made pursuant to this subsection shall be
required after the date geothermal steam is produced or utilized in
commercial quantities from the lease.
(6) Expenditures made pursuant to this subsection shall be in lieu
of any minimum per acre diligent exploration expenditure requirement in
effect for the lease at the end of its primary term, or at the end of
any extension provided by subsection (c) of this section, as the case
may be.
(Pub. L. 91-581, Sec. 6, Dec. 24, 1970, 84 Stat. 1568; Pub. L. 100-443,
Secs. 2(b), 3, Sept. 22, 1988, 102 Stat. 1766.)
References in Text
The Mineral Leasing Act of February 25, 1920, referred to in subsec.
(e), is act Feb. 25, 1920, ch. 85, 41 Stat. 437, as amended, known as
the Mineral Leasing Act, which is classified generally to chapter 3A
(Sec. 181 et seq.) of this title. For complete classification of this
Act to the Code, see Short Title note set out under section 181 of this
title and Tables.
The Mineral Leasing Act for Acquired Lands, referred to in subsec.
(e), is act Aug. 7, 1947, ch. 513, 61 Stat. 913, as amended, which is
classified generally to chapter 7 (Sec. 351 et seq.) of this title. For
complete classification of this Act to the Code, see Short Title note
set out under section 351 of this title and Tables.
The mining laws of the United States, referred to in subsec. (f),
are classified generally to this title.
The Multiple Mineral Development Act, referred to in subsec. (f), is
act Aug. 13, 1954, ch. 730, 68 Stat. 708, as amended, which is
classified principally to chapter 12 (Sec. 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.
Amendments
1988--Subsec. (d). Pub. L. 100-443, Sec. 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, Sec. 3, added subsecs. (g) to
(j).
Consistency Provision
Section 9 of Pub. L. 100-443 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, Sec. 101(h) [title I, Sec. 115], Oct. 18, 1986, 100
Stat. 1783-242, 1783-264, and Pub. L. 99-591, Sec. 101(h) [title I,
Sec. 115], Oct. 30, 1986, 100 Stat. 3341-242, 3341-264, as amended by
Pub. L. 106-510, Sec. 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--
``(a) a bona fide sale of the geothermal resource, from a well
capable of production, for delivery to or utilization by a facility
or facilities, has not been completed (1) due to administrative
delays by government entities, beyond the control of the lessee, or
(2) such sale would be uneconomic;
``(b) substantial investment in the development of or for the
benefit of the lease has been made; and
``(c) the lease would otherwise expire prior to December 31,
1988.
``(2)(a) The Secretary of the Interior (hereinafter in this section
referred to as `the Secretary' shall publish for public comment in the
Federal Register within 120 days after the date of enactment of this
section [Oct. 18, 1986] a proposed list of significant thermal features
within the following units of the National Park System:
``Mount Rainier National Park;
``Lassen Volcanic National Park;
``Yellowstone National Park;
``Bering Land Bridge National Preserve;
``Gates of the Arctic National Park and Preserve;
``Yukon-Charley Rivers National Preserve;
``Katmai National Park;
``Aniakchak National Monument and Preserve;
``Wrangell-St. Elias National Park and Preserve;
``Glacier Bay National Park and Preserve;
``Denali National Park and Preserve;
``Lake Clark National Park and Preserve;
``Hot Springs National Park;
``Sequoia National Park;
``Hawai`i Volcanoes National Park;
``Lake Mead National Recreation Area;
``Big Bend National Park;
``Olympic National Park;
``Grand Teton National Park;
``John D. Rockefeller, Jr. Memorial Parkway;
``Haleakala National Park; and
``Crater Lake National Park.
The Secretary shall include with such list the basis for his
determination with respect to each thermal feature on the list. Based on
public comment on such list, the Secretary is authorized to make
additions to or deletions from the list. Not later than the 60th day
from the date on which the proposed list was published in the Federal
Register, the Secretary shall transmit the list to the Committee on
Energy and Natural Resources of the Senate and the Committee on Interior
and Insular Affairs of the House of Representatives together with copies
of all public comments which he has received and indicating any
additions to or deletions from the list with a statement of the reasons
therefor and the basis for inclusion of each thermal feature on the
list. The Secretary shall consider the following criteria in determining
the significance of thermal features:
``(1) size, extent, and uniqueness;
``(2) scientific and geologic significance;
``(3) the extent to which such features remain in a natural,
undisturbed condition; and
``(4) significance of thermal features to the authorized
purposes for which the National Park System unit was created.
The Secretary shall not issue any geothermal lease pursuant to the
Geothermal Steam Act of 1970 (Public Law 91-581, 84 Stat. 1566), as
amended [30 U.S.C. 1001 et seq.], until such time as the Secretary has
transmitted the list to the Committees of Congress as provided in this
section.
``(b) The Secretary shall maintain a monitoring program for those
significant thermal features listed pursuant to subsection (a) of this
section.
``(c) Upon receipt of an application for a geothermal lease the
Secretary shall determine on the basis of scientific evidence if
exploration, development, or utilization of the lands subject to the
geothermal lease application is reasonably likely to result in a
significant adverse effect on a significant thermal feature listed
pursuant to subsection (a) of this section. Such determination shall be
subject to notice and public comment. If the Secretary determines on the
basis of scientific evidence that the exploration, development, or
utilization of the land subject to the geothermal lease application is
reasonably likely to result in a significant adverse effect on a
significant thermal feature listed pursuant to subsection (a) of this
section, the Secretary shall not issue such geothermal lease. In
addition, the Secretary shall withdraw from leasing under the Geothermal
Steam Act of 1970, as amended, those lands, or portion thereof, subject
to the application for geothermal lease, the exploration, development,
or utilization of which is reasonably likely to result, based on the
Secretary's determination, in a significant adverse effect on a
significant thermal feature listed pursuant to subsection (a) of this
section.
``(d) With respect to all geothermal leases issued after the date of
enactment of this section [Oct. 18, 1986] the Secretary shall include
stipulations in leases necessary to protect significant thermal features
listed pursuant to subsection (a) of this section where a determination
is made based on scientific evidence that the exploration, development,
or utilization of the lands subject to the lease is reasonably likely to
adversely affect such significant features. Such stipulations shall
include, but are not limited to:
``(1) requiring the lessee to reinject geothermal fluids into
the rock formations from which they originate;
``(2) requiring the lessee to report annually to the Secretary
on its activities;
``(3) requiring the lessee to continuously monitor geothermal
production and injection wells; and
``(4) requiring the lessee to suspend activity, temporarily or
permanently, on the lease if the Secretary determines that ongoing
exploration, development, or utilization activities are having a
significant adverse effect on significant thermal features listed
pursuant to subsection (a) of this section until such time as the
significant adverse effect is eliminated.
``(e) The Secretary of Agriculture shall consider the effects on
significant thermal features of those units of the National Park System
identified in subsection (a) of this section in determining whether to
consent to leasing under the Geothermal Steam Act of 1970, as amended,
on national forest or other lands administered by the Department of
Agriculture available for leasing under the Geothermal Steam Act of
1970, as amended, including public, withdrawn, and acquired lands.
``(f) Nothing contained in this section shall affect the ban on
leasing under the Geothermal Steam Act of 1970, as amended, with respect
to the Island Park Known Geothermal Resources Area, as provided for in
Public Law 98-473 (98 Stat. 1837) [see Tables for classification] and
Public Law 99-190 (99 Stat. 1267) [see Tables for classification].
``(g) Except as provided herein, nothing contained in this section
shall affect or modify the authorities or responsibilities of the
Secretary under the Geothermal Steam Act of 1970, as amended, or any
other provision of law.
``(h) The provisions of this section shall remain in effect until
Congress determines otherwise.''
Section Referred to in Other Sections
This section is referred to in sections 1017, 1019 of this title.
