References in Text
The Mineral Leasing Act, referred to in subsec. (a)(2), is act Feb. 25, 1920, ch. 85, 41 Stat. 437, as amended, which is classified 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.
2005—Pub. L. 109–58, §§ 223(a)(1)–(3), 224(a)(1), 228, 230(1)–(3), 233(a), 236(7), inserted section catchline, designated existing provisions as subsec. (a) and inserted heading, redesignated subpars. (1) and (2) of par. (c) as subpars. (A) and (B), respectively, redesignated pars. (a) to (d) as pars. (1) to (4), respectively, of subsec. (a), added new pars. (1) to (3) of subsec. (a) and struck out former pars. (1) to (4) of subsec. (a) which related to royalties for amount or value of steam or other form of heat energy, royalty for value of byproducts, payment of annual rental, and royalties in lieu of rentals.
Subsec. (b). Pub. L. 109–58, § 223(a)(4), added subsec. (b).
Subsecs. (c), (d). Pub. L. 109–58, § 224(a)(2), added subsecs. (c) and (d).
Subsec. (e). Pub. L. 109–58, § 230(4), added subsec. (e).
Subsec. (f). Pub. L. 109–58, § 232, added subsec. (f).
Subsec. (g). Pub. L. 109–58, § 233(b), added subsec. (g).
Effective Date of 2005 Amendment
Pub. L. 109–58, title II, § 223(c), Aug. 8, 2005, 119 Stat. 662, provided that:
“The schedule of fees established under the amendment made by subsection (a)(4) [amending this section] shall apply with respect to payments under a lease converted under this subsection that are due and owing, and have been paid, on or after July 16, 2003
. This subsection shall not require the refund of royalties paid to a State under section 20 of the Geothermal Steam Act of 1970
(30 U.S.C. 1019
) prior to the date of enactment of this Act [Aug. 8, 2005
Incentives and Royalties for Existing Leases
Pub. L. 109–58, title II, § 224(c)–(e), Aug. 8, 2005, 119 Stat. 663, 664, provided that:
“(c) Near-Term Production Incentive for Existing Leases.—
“(1) In general.—Notwithstanding section 5(a) of the Geothermal Steam Act of 1970 [30 U.S.C. 1004(a)], the royalty required to be paid shall be 50 percent of the amount of the royalty otherwise required, on any lease issued before the date of enactment of this Act [Aug. 8, 2005] that does not convert to new royalty terms under subsection (e)—
with respect to commercial production of energy from a facility that begins such production in the 6-year period beginning on the date of enactment of this Act; or
on qualified expansion geothermal energy.
“(2) 4-year application.—
Paragraph (1) applies only to new commercial production of energy from a facility in the first 4 years of such production.
“(d) Definition of Qualified Expansion Geothermal Energy.—In this section [amending this section and section 1019 of this title and enacting provisions set out as a note under this section], the term ‘qualified expansion geothermal energy’ means geothermal energy produced from a generation facility for which—
the production is increased by more than 10 percent as a result of expansion of the facility carried out in the 6-year period beginning on the date of enactment of this Act [Aug. 8, 2005]; and
such production increase is greater than 10 percent of the average production by the facility during the 5-year period preceding the expansion of the facility (as such average is adjusted to reflect any trend in changes in production during that period).
“(e) Royalty Under Existing Leases.—
“(1) In general.—Any lessee under a lease issued under the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) before the date of enactment of this Act [Aug. 8, 2005] may, within the time period specified in paragraph (2), submit to the Secretary of the Interior a request to modify the terms of the lease relating to payment of royalties to provide—
in the case of a lease that meets the requirements of subsection (b) of section 5 of the Geothermal Steam Act of 1970
(30 U.S.C. 1004
) (as amended by section 223), that royalties be based on the schedule of fees established under that section; and
in the case of any other lease, that royalties be computed on a percentage of the gross proceeds from the sale of electricity, at a royalty rate that is expected to yield total royalty payments equivalent to payments that would have been received for comparable production under the royalty rate in effect for the lease before the date of enactment of this subsection.
“(2) Timing.—A request for a modification under paragraph (1) shall be submitted to the Secretary of the Interior by the date that is not later than—
in the case of any other lease, 18 months after the effective date of the final regulation issued under subsection (a) [amending this section].
“(3) Application of modification.—If the lessee requests modification of a lease under paragraph (1)—
“(A) the Secretary of the Interior shall, within 180 days after the receipt of the request for modification, modify the lease to comply with—
in the case of any other lease, the royalty for the lease established under paragraph (1)(B); and
the modification shall apply to any use of geothermal resources
to which subsection (a) [amending this section] applies that occurs after the date of the modification.
of the Interior shall consult with the State and local governments affected by any proposed changes in lease royalty terms under this subsection.”