30 U.S.C. § 1003 — Leasing procedures

Page 213 TITLE 30—MINERAL LANDS AND MINING § 1003 1 See Codification note below. by him, including public, withdrawn, and ac- quired lands, (2) in any national forest or other lands administered by the Department of Agri- culture through the Forest Service, including public, withdrawn, and acquired lands, and (3) in lands which have been conveyed by the United States subject to a reservation to the United States of the geothermal resources therein. (Pub. L. 91–581, § 3, Dec. 24, 1970, 84 Stat. 1566; Pub. L. 109–58, title II, § 236(1), (6), Aug. 8, 2005, 119 Stat. 671, 672.) Editorial Notes AMENDMENTS 2005—Pub. L. 109–58 inserted section catchline and substituted ‘‘geothermal resources’’ for ‘‘geothermal steam and associated geothermal resources’’ in two places in text. § 1002a. Repealed. Pub. L. 97–214, § 7(16), July 12, 1982, 96 Stat. 174 Section, Pub. L. 95–356, title VIII, § 803(a), (b), Sept. 8, 1978, 92 Stat. 585; Pub. L. 96–125, title VIII, § 802(2), Nov. 26, 1979, 93 Stat. 948; Pub. L. 97–99, title IX, § 908, Dec. 23, 1981, 95 Stat. 1385, related to development of geo- thermal energy sources on military lands, contracts for provision and operation of production facilities and en- ergy purchases, and terms, conditions and prerequisites of such contracts. See sections 2917 and 2922a of Title 10, Armed Forces. Pub. L. 95–356, title VIII, § 803(c), Sept. 8, 1978, 92 Stat. 585, which provided that this section take effect Oct. 1, 1978, was repealed by Pub. L. 97–214, § 7(16), July 12, 1982, 96 Stat. 174. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective Oct. 1, 1982, and applicable to mili- tary construction projects, and to construction and ac- quisition of military family housing before, on, or after such date, see section 12(a) of Pub. L. 97–214, set out as an Effective Date note under section 2801 of Title 10, Armed Forces. § 1003. Leasing procedures (a) Nominations The Secretary shall accept nominations of land to be leased at any time from qualified companies and individuals under this chapter. (b) Competitive lease sale required (1) In general Except as otherwise specifically provided by this chapter, all land to be leased that is not subject to leasing under subsection (c) shall be leased as provided in this subsection to the highest responsible qualified bidder, as deter- mined by the Secretary. (2) Competitive lease sales The Secretary shall hold a competitive lease sale at least once every 2 years for land in a State that has nominations pending under subsection (a) if the land is otherwise avail- able for leasing. (3) Lands subject to mining claims Lands that are subject to a mining claim for which a plan of operations has been approved by the relevant Federal land management agency may be available for noncompetitive leasing under this section to the mining claim holder. (4) Land subject to oil and gas lease Land under an oil and gas lease issued pursu- ant to the Mineral Leasing Act (30 U.S.C. 181 et seq.) or the Mineral Leasing Act for Ac- quired Lands (30 U.S.C. 351 et seq.) that is sub- ject to an approved application for permit to drill and from which oil and gas production is occurring may be available for noncompetitive leasing under subsection (c) by the holder of the oil and gas lease— (A) on a determination that geothermal energy will be produced from a well pro- ducing or capable of producing oil and gas; and (B) to provide for the coproduction of geo- thermal energy with oil and gas. (c) Noncompetitive leasing The Secretary shall make available for a pe- riod of 2 years for noncompetitive leasing any tract for which a competitive lease sale is held, but for which the Secretary does not receive any bids in a competitive lease sale. (d) Pending lease applications (1) In general It shall be a priority for the Secretary, and for the Secretary of Agriculture with respect to National Forest Systems land, to ensure timely completion of administrative actions, including amendments to applicable forest plans and resource management plans, nec- essary to process applications for geothermal leasing pending on August 8, 2005.1 All future forest plans and resource management plans for areas with high geothermal resource po- tential shall consider geothermal leasing and development. (2) Administration An application described in paragraph (1) and any lease issued pursuant to the applica- tion— (A) except as provided in subparagraph (B), shall be subject to this section as in effect on the day before August 8, 2005; or (B) at the election of the applicant, shall be subject to this section as in effect on Au- gust 8, 2005. (e) Leases sold as a block If information is available to the Secretary in- dicating a geothermal resource that could be produced as 1 unit can reasonably be expected to underlie more than 1 parcel to be offered in a competitive lease sale, the parcels for such a re- source may be offered for bidding as a block in the competitive lease sale. (f) Leasing for direct use of geothermal re- sources Notwithstanding subsection (b), the Secretary may identify areas in which the land to be leased under this chapter exclusively for direct use of geothermal resources, without sale for purposes other than commercial generation of electricity, may be leased to any qualified appli- cant that first applies for such a lease under reg- 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, see Short Title note set out under sec- tion 351 of this title and Tables. CODIFICATION August 8, 2005, referred to in subsec. (d)(1), was in the original ‘‘the date of enactment of this subsection’’ which was translated as meaning the date of enactment of Pub. L. 109–58, which amended this section generally, to reflect the probable intent of Congress. AMENDMENTS 2020—Subsec. (b)(4). Pub. L. 116–260 added par. (4). 2005—Pub. L. 109–58, § 222, inserted section catchline and amended text generally. Prior to amendment, text related to competitive bidding requirements, conver- sion of prior leases to geothermal leases, conflicting land interests, conversion of prior applications, acreage limitation, regulations, and time for payment. Subsecs. (f), (g). Pub. L. 109–58, § 223(b), added subsecs. (f) and (g). § 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 re- sources during the first 10 years of produc- tion 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 min- eral specified in the first section of the Min- eral Leasing Act (30 U.S.C. 181), and that is de- rived from production under the lease, at the rate of the royalty that applies under that Act [30 U.S.C. 181 et seq.] to production of the min- eral 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 frac- tion 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; 1 (b) Direct use (1) In general Notwithstanding subsection (a)(1), the Sec- retary 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 com- mercial generation of electricity; and (B) does not sell. (2) Schedule of fees The schedule of fees— (A) may be based on the quantity or ther- mal content, or both, of geothermal re- sources used; (B) shall ensure a fair return to the United States for use of the resource; and (C) shall encourage development of the re- source. (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 com- mercial generation of electricity, the Sec- retary 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 Sec- retary shall seek— (A) to provide lessees with a simplified ad- ministrative 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—