Geothermal Resources means all products including indigenous steam, hot water and hot brines; steam and other gases, hot water and hot brines resulting from water, gas, or other fluids artificially introduced into geothermal formations; heat or other associated energy found in geothermal formations and any by-product derived from them. The term ‘by-product’ means minerals (exclusive of oil, hydrocarbon gas, and helium) which are found in solution or in association with geothermal steam and which have a value of less than 75 % of the value of the geothermal steam .
It is the duty of the Secretary to accept nominations of land which are to be leased at any time from competent companies and individuals.
The Secretary of the Interior is empowered to issue leases for the development and utilization of geothermal resources in lands administered by him as well as acquired lands. He can also issue such lease in any national forest or other lands administered by the Department of Agriculture through the Forest Service.
All leased lands are transferred to the highest responsible qualified bidder which is duly determined by the Secretary.
Geothermal leases provide a royalty on electricity produced using geothermal resources, which is not less than 1 %and not more than 2.5 % of the gross proceeds from the sale of electricity produced from such resources during the first 10 years of production under the lease and not less than 2 and not more than 5 % of the gross proceeds from the sale of electricity produced from such resources during each year after such 10-year period.
