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30 U.S.C. § 1004 — Rents and royalties

Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 1004 — Rents and royalties

**(a) In general** Geothermal leases shall provide for— (1) a royalty on electricity produced using geothermal resources, other than direct use of geothermal resources, that shall be— (A) not less than 1 percent and not more than 2.5 percent of the gross proceeds from the sale of electricity produced from such resources during the first 10 years of production under the lease; and (B) not less than 2 and not more than 5 percent of the gross proceeds from the sale of electricity produced from such resources during each year after such 10-year period; (2) a royalty on any byproduct that is a mineral specified in the first section of the Mineral Leasing Act ([30 U.S.C. 181](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section181&num=0&edition=prelim)), and that is derived from production under the lease, at the rate of the royalty that applies under that Act [[30 U.S.C. 181](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section181&num=0&edition=prelim) et seq.] to production of the mineral under a lease under that Act; and (3) payment in advance of an annual rental of not less than— (A) for each of the 1st through 10th years of the lease— (i) in the case of a lease awarded in a noncompetitive lease sale, $1 per acre or fraction thereof; or (ii) in the case of a lease awarded in a competitive lease sale, $2 per acre or fraction thereof for the 1st year and $3 per acre or fraction thereof for each of the 2nd through 10th years; and (B) for each year after the 10th year of the lease, $5 per acre or fraction thereof; 11 So in original. The semicolon probably should be a period. **(b) Direct use** (1) **In general** — Notwithstanding subsection (a)(1), the Secretary shall establish a schedule of fees, in l

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Source location: Title 30, Chapter 23, § 1004; chapter-023-geothermal-resources.md

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**(a) In general** Geothermal leases shall provide for— (1) a royalty on electricity produced using geothermal resources, other than direct use of geothermal resources, that shall be— (A) not less than 1 percent and not more than 2.5 percent of the gross proceeds from the sale of electricity produced from such resources during the first 10 years of production under the lease; and (B) not less than 2 and not more than 5 percent of the gross proceeds from the sale of electricity produced from such resources during each year after such 10-year period; (2) a royalty on any byproduct that is a mineral specified in the first section of the Mineral Leasing Act ([30 U.S.C. 181](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section181&num=0&edition=prelim)), and that is derived from production under the lease, at the rate of the royalty that applies under that Act [[30 U.S.C. 181](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section181&num=0&edition=prelim) et seq.] to production of the mineral under a lease under that Act; and (3) payment in advance of an annual rental of not less than— (A) for each of the 1st through 10th years of the lease— (i) in the case of a lease awarded in a noncompetitive lease sale, $1 per acre or fraction thereof; or (ii) in the case of a lease awarded in a competitive lease sale, $2 per acre or fraction thereof for the 1st year and $3 per acre or fraction thereof for each of the 2nd through 10th years; and (B) for each year after the 10th year of the lease, $5 per acre or fraction thereof; 11 So in original. The semicolon probably should be a period. **(b) Direct use** (1) **In general** — Notwithstanding subsection (a)(1), the Secretary shall establish a schedule of fees, in lieu of royalties for geothermal resources, that a lessee or its affiliate— (A) uses for a purpose other than the commercial generation of electricity; and (B) does not sell. (2) **Schedule of fees** — The schedule of fees— (A) may be based on the quantity or thermal content, or both, of geothermal resources used; (B) shall ensure a fair return to the United States for use of the resource; and (C) shall encourage development of the resource. (3) **State, tribal, or local governments** — If a State, tribal, or local government is the lessee and uses geothermal resources without sale and for public purposes other than commercial generation of electricity, the Secretary shall charge only a nominal fee for use of the resource. (4) **Final regulation** — In issuing any final regulation establishing a schedule of fees under this subsection, the Secretary shall seek— (A) to provide lessees with a simplified administrative system; (B) to facilitate development of direct use of geothermal resources; and (C) to contribute to sustainable economic development opportunities in the area. **(c) Final regulation establishing royalty rates** In issuing any final regulation establishing royalty rates under this section, the Secretary shall seek— (1) to provide lessees a simplified administrative system; (2) to encourage new development; and (3) to achieve the same level of royalty revenues over a 10-year period as the regulation in effect on August 8, 2005. **(d) Credits for in-kind payments of electricity** The Secretary may provide to a lessee a credit against royalties owed under this chapter, in an amount equal to the value of electricity provided under contract to a State or county government that is entitled to a portion of such royalties under [section 1019 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section1019&num=0&edition=prelim), section 35 of the Mineral Leasing Act ([30 U.S.C. 191](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section191&num=0&edition=prelim)), except as otherwise provided by this section, or [section 355 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section355&num=0&edition=prelim), if— (1) the Secretary has approved in advance the contract between the lessee and the State or county government for such in-kind payments; (2) the contract establishes a specific methodology to determine the value of such credits; and (3) the maximum credit will be equal to the royalty value owed to the State or county that is a party to the contract and the electricity received will serve as the royalty payment from the Federal Government to that entity. **(e) Crediting of rental toward royalty** Any annual rental under this section that is paid with respect to a lease before the first day of the year for which the annual rental is owed shall be credited to the amount of royalty that is required to be paid under the lease for that year. **(f) Advanced royalties required for cessation of production** (1) **In general** — Subject to paragraphs (2) and (3), if, at any time after commercial production under a lease is achieved, production ceases for any reason, the lease shall remain in full force and effect for a period of not more than an aggregate number of 10 years beginning on the date production ceases, if, during the period in which production is ceased, the lessee pays royalties in advance at the monthly average rate at which the royalty was paid during the period of production. (2) **Reduction** — The amount of any production royalty paid for any year shall be reduced (but not below 0) by the amount of any advanced royalties paid under the lease to the extent that the advance royalties have not been used to reduce production royalties for a prior year. (3) **Exceptions** — Paragraph (1) shall not apply if the cessation in production is required or otherwise caused by— (A) the Secretary; (B) the Secretary of the Air Force; (C) the Secretary of the Army; (D) the Secretary of the Navy; (E) a State or a political subdivision of a State; or (F) a force majeure. **(g) Termination of lease for failure to pay rental** (1) **In general** — The Secretary shall terminate any lease with respect to which rental is not paid in accordance with this chapter and the terms of the lease under which the rental is required, on the expiration of the 45-day period beginning on the date of the failure to pay the rental. (2) **Notification** — The Secretary shall promptly notify a lessee that has not paid rental required under the lease that the lease will be terminated at the end of the period referred to in paragraph (1). (3) **Reinstatement** — A lease that would otherwise terminate under paragraph (1) shall not terminate under that paragraph if the lessee pays to the Secretary, before the end of the period referred to in paragraph (1), the amount of rental due plus a late fee equal to 10 percent of the amount.

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 1019 — Disposal of moneys from sales, bonuses, rentals, and royalties

**(a) In general** Except with respect to lands in the State of Alaska, all monies received by the United States from sales, bonuses, rentals, and royalties under this chapter shall be paid into the Treasury of the United States. Of amounts deposited under this subsection, subject to the provisions of subsection (b) of [section 191 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section191&num=0&edition=prelim) and [section 1004(a)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section1004/a/2&num=0&edition=prelim)— (1) 50 percent shall be paid to the State within the boundaries of which the leased lands or geothermal resources are or were located; and (2) 25 percent shall be paid to the county within the boundaries of which the leased lands or geothermal resources are or were located. **(b) Use of payments** Amounts paid to a State or county under subsection (a) shall be used consistent with the terms of [section 191 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section191&num=0&edition=prelim).

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 191 — Disposition of moneys received

**(a) In general** All money received from sales, bonuses, royalties including interest charges collected under the Federal Oil and Gas Royalty Management Act of 1982 [[30 U.S.C. 1701](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section1701&num=0&edition=prelim) et seq.], and rentals of the public lands under the provisions of this chapter and the Geothermal Steam Act of 1970 [[30 U.S.C. 1001](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section1001&num=0&edition=prelim) et seq.], shall be paid into the Treasury of the United States; and, subject to the provisions of subsection (b), 50 per centum thereof shall be paid by the Secretary of the Treasury to the State other than Alaska within the boundaries of which the leased lands or deposits are or were located; said moneys paid to any of such States on or after January 1, 1976, to be used by such State and its subdivisions, as the legislature of the State may direct giving priority to those subdivisions of the State socially or economically impacted by development of minerals leased under this chapter, for (i) planning, (ii) construction and maintenance of public facilities, and (iii) provision of public service; and excepting those from Alaska, 40 per centum thereof shall be paid into, reserved, appropriated, as part of the reclamation fund created by the Act of Congress known as the Reclamation Act, approved June 17, 1902, and of those from Alaska, 90 per centum thereof shall be paid to the State of Alaska for disposition by the legislature thereof: Provided, That all moneys which may accrue to the United States under the provisions of this chapter and the Geothermal Steam Act of 1970 from lands within the naval petroleum reserves shall be deposited in the Treasury as “m

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 1001 — Definitions

As used in this chapter, the term— **(a)** “Secretary” means the Secretary of the Interior; **(b)** “geothermal lease” means a lease issued under authority of this chapter; **(c)** “geothermal resources” means (i) all products of geothermal processes, embracing indigenous steam, hot water and hot brines; (ii) steam and other gases, hot water and hot brines resulting from water, gas, or other fluids artificially introduced into geothermal formations; (iii) heat or other associated energy found in geothermal formations; and (iv) any byproduct derived from them; **(d)** “byproduct” means any mineral or 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 per centum of the value of the geothermal steam or are not, because of quantity, quality, or technical difficulties in extraction and production, of sufficient value to warrant extraction and production by themselves; **(e)** “known geothermal resources area” means an area in which the geology, nearby discoveries, competitive interests, or other indicia would, in the opinion of the Secretary, engender a belief in men who are experienced in the subject matter that the prospects for extraction of geothermal steam or associated geothermal resources are good enough to warrant expenditures of money for that purpose. **(f)** “Significant 11 So in original. Probably should not be capitalized. thermal features within units of the National Park System” shall include, but not be limited to, the following: (1) Thermal features within units of the National Park System listed in Section 1 1026(a)(1) of this title and designated as significant in the Federal Register notice of August 3, 1987 (Vol. 52, No. 148 Fed. Reg. 2

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 181 — Lands subject to disposition; persons entitled to benefits; reciprocal privileges; helium rights reserved

Deposits of coal, phosphate, sodium, potassium, oil, oil shale, gilsonite (including all vein-type solid hydrocarbons), or gas, and lands containing such deposits owned by the United States, including those in national forests, but excluding lands acquired under the Appalachian Forest Act, approved March 1, 1911 (36 Stat. 961), and those in incorporated cities, towns, and villages and in national parks and monuments, those acquired under other Acts subsequent to February 25, 1920, and lands within the naval petroleum and oil-shale reserves, except as hereinafter provided, shall be subject to disposition in the form and manner provided by this chapter to citizens of the United States, or to associations of such citizens, or to any corporation organized under the laws of the United States, or of any State or Territory thereof, or in the case of coal, oil, oil shale, or gas, to municipalities. Citizens of another country, the laws, customs, or regulations of which deny similar or like privileges to citizens or corporations of this country, shall not by stock ownership, stock holding, or stock control, own any interest in any lease acquired under the provisions of this chapter.

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 355 — Disposition of receipts

**(a)** Subject to the provisions of section 35(b) of the Mineral Leasing Act ([30 U.S.C. 191(b)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section191/b&num=0&edition=prelim)), all receipts derived from leases issued under the authority of this chapter shall be paid into the same funds or accounts in the Treasury and shall be distributed in the same manner as prescribed for other receipts from the lands affected by the lease, the intention of this provision being that this chapter shall not affect the distribution of receipts pursuant to legislation applicable to such lands: Provided, however, That receipts from leases or permits for minerals in lands set apart for Indian use, including lands the jurisdiction of which has been transferred to the Department of the Interior by the Executive order for Indian use, shall be deposited in a special fund in the Treasury until final disposition thereof by the Congress. Notwithstanding the preceding provisions of this section, all receipts derived from leases on lands acquired for military or naval purposes, except the naval petroleum reserves and national oil shale reserves, shall be paid into the Treasury of the United States and disposed of in the same manner as provided under section 35 of the Act of February 25, 1920 (41 Stat. 450; [30 U.S.C. 191](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section191&num=0&edition=prelim)), in the case of receipts from sales, bonuses, royalties, and rentals of the public lands under that Act [[30 U.S.C. 181](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title30-section181&num=0&edition=prelim) et seq.]. **(b)** Notwithstanding any other provision of law, any payment to a State under this section shall be made by the Secreta

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 1004 — Rents and royalties

Page 214 TITLE 30—MINERAL LANDS AND MINING § 1004 1 So in original. The semicolon probably should be a period. ulations issued by the Secretary, if the Sec- retary— (1) publishes a notice of the land proposed for leasing not later than 90 days before the date of the issuance of the lease; (2) does not receive during the 90-day period beginning on the date of the publication any nomination to include the land concerned in the next competitive lease sale; and (3) determines there is no competitive inter- est in the geothermal resources in the land to be leased. (g) Area subject to lease for direct use (1) In general Subject to paragraph (2), a geothermal lease for the direct use of geothermal resources shall cover not more than the quantity of acreage determined by the Secretary to be reasonably necessary for the proposed use. (2) Limitations The quantity of acreage covered by the lease shall not exceed the limitations established under section 1006 of this title. (Pub. L. 91–581, § 4, Dec. 24, 1970, 84 Stat. 1566; Pub. L. 109–58, title II, §§ 222, 223(b), Aug. 8, 2005, 119 Stat. 660, 662; Pub. L. 116–260, div. Z, title III, § 3105, Dec. 27, 2020, 134 Stat. 2516.) Editorial Notes REFERENCES IN TEXT The Mineral Leasing Act, referred to in subsec. (b)(4), is act Feb. 25, 1920, ch. 85, 41 Stat. 437, which is classi- fied generally to chapter 3A (§ 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. (b)(4), is act Aug. 7, 1947, ch. 513, 61 Stat. 913, which is classified generally to chapter 7 (§ 351 et seq.) of this title. For complete classification of this Act to the Code,

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 181 — Lands subject to disposition; persons enti-

Page 35 TITLE 30—MINERAL LANDS AND MINING § 181 Sec. SUBCHAPTER V—OIL SHALE 241. Leases of lands. 242. Oil shale claims. SUBCHAPTER VI—ALASKA OIL PROVISO 251. Leases to claimants of withdrawn lands; terms and conditions; acreage; annual rent- als and royalties; fraud of claimants. SUBCHAPTER VII—SODIUM 261. Prospecting permits; lands included; acreage. 262. Leases to permittees; survey of lands; royal- ties and annual rentals. 263. Permits to use or lease of nonmineral lands for camp sites, and other purposes; annual rentals; acreage. SUBCHAPTER VIII—SULPHUR 271. Prospecting permits; lands included; acreage. 272. Leases to permittees; privileges extended to oil and gas permittees. 273. Lease of lands not covered by permits or leases; acreage; rental. 274. Lands containing coal or other minerals. 275. Laws applicable. 276. Application of subchapter to Louisiana and New Mexico only. SUBCHAPTER IX—POTASH 281. Prospecting permits for chlorides, sulphates, carbonates, borates, silicates, or nitrates of potassium; authorization; acreage; lands af- fected. 282. Leases to permittees of lands showing valu- able deposits; royalty. 283. Lands containing valuable deposits not cov- ered by permits or leases; authority to lease; acreage; conditions; renewals; exemp- tions from rentals and royalties; suspension of operations. 284. Lands containing coal or other minerals in addition to potassium deposits; issuance of prospecting permits and leases; covenants in potassium leases. 285. Laws applicable. 286. Disposition of royalties and rents from potas- sium leases. 287. Extension of prospecting permits. SUBCHAPTER I—GENERAL PROVISIONS § 181. Lands subject to disposition; persons enti- tled to benefits; reciprocal privileges; heliu

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Federal law — U.S. Code and appendices · legal_authorities

30 U.S.C. § 191 — Disposition of moneys received

Page 54 TITLE 30—MINERAL LANDS AND MINING § 189 (Nov. 28, 1943, ch. 329, 57 Stat. 593; 1946 Reorg. Plan No. 3, § 403, eff. July 16, 1946, 11 F.R. 7876, 60 Stat. 1100.) Editorial Notes CODIFICATION Section was not enacted as part of act Feb. 25, 1920, ch. 85, 41 Stat. 437, known as the Mineral Leasing Act, which comprises this chapter. Executive Documents TRANSFER OF FUNCTIONS ‘‘Bureau of Land Management’’ substituted in text for ‘‘General Land Office’’ on authority of Reorg. Plan No. 3 of 1946, § 403, set out in the Appendix to Title 5, Government Organization and Employees. § 189. Rules and regulations; boundary lines; State rights unaffected; taxation The Secretary of the Interior is authorized to prescribe necessary and proper rules and regula- tions and to do any and all things necessary to carry out and accomplish the purposes of this chapter, also to fix and determine the boundary lines of any structure, or oil or gas field, for the purposes of this chapter. Nothing in this chapter shall be construed or held to affect the rights of the States or other local authority to exercise any rights which they may have, including the right to levy and collect taxes upon improve- ments, output of mines, or other rights, prop- erty, or assets of any lessee of the United States. (Feb. 25, 1920, ch. 85, § 32, 41 Stat. 450.) Statutory Notes and Related Subsidiaries TRANSFER OF FUNCTIONS Functions of Secretary of the Interior to promulgate regulations under this chapter relating to fostering of competition for Federal leases, implementation of al- ternative bidding systems authorized for award of Fed- eral leases, establishment of diligence requirements for operations conducted on Federal leases, setting of rates for production of Federal leases, an

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