RAPID/Roadmap/3-FD-a(1)
Federal Geothermal Noncompetitive Leasing (3-FD-a(1))
The BLM is required to lease almost all qualifying lands to the highest responsible qualified bidder pursuant to the Geothermal Steam Act of 1970. 30 U.S.C. § 1003. However, land solely designated for direct use leasing and lands for which noncompetitive leases were pending as of August 8, 2005, are not subject to competitive leasing. “Direct use leasing” means that the power generated will not be available for sale offsite. 43. C.F.R. § 3203.5.
Additionally, where the developer is the holder of a mining claim with a current federally approved plan of operations, the developer may submit a noncompetitive lease application for lands within the mining claim. 43 C.F.R. §§ 3204.5, 3204.12.
If the developer is the holder of an Oil and Gas Lease on federal lands that is subject to an approved application for permit to drill and from which oil and gas production is occurring, the developer may apply for a noncompetitive lease for either the coproduction of geothermal energy with oil and gas or on a determination that geothermal energy will be produced from a well producing or capable of producing oil and gas. 30 U.S.C. § 1003(b).
Note: The BLM has not yet promulgated regulations for the application, approval, and issuance of a noncompetitive lease for coproduction with oil and gas or the production of geothermal energy from an existing oil and gas well.
Finally, where the land in question was otherwise subject to the competitive geothermal leasing process and was held at auction but failed to garner a single competitive bid, the BLM may offer the land for noncompetitive leasing for up to two years following the sale date. 30 U.S.C. § 1003(c).
Federal Geothermal Noncompetitive Leasing Process
3-FD-a.1 – Is the Land Designated for Direct Use?
A developer may submit a noncompetitive lease application for lands the BLM has designated as available for direct use or for purposes other than commercial generation of electricity. 43 C.F.R. § 3205.6. Only lands designated for direct use may be included in the project application.
3-FD-a.2 to 3-FD-a.3 – Noncompetitive Lease for Direct Use Application
A developer must apply for a Noncompetitive Direct Use Application to the BLM by submitting a copy of Offer Lease and Lease for Geothermal Resources (Form 3200-024a). The application must include information to allow the BLM to determine how much acreage is reasonably necessary for the proposed use, including:
- A description of all anticipated structures, facilities, wells, and pipelines including
their size, location, function, and associated surface disturbance;
- A description of the utilization process;
- A description and analysis of anticipated reservoir production, injection, and characteristics to the extent required by the BLM; and
- Any additional information or data that the BLM may require.
The developer cannot apply for more than the acreage necessary for the project and cannot apply for an amount of land greater than 5,120 acres unless the project is irregularly divided. 43 C.F.R. § 3205.7.
The developer must submit with the application the nonrefundable processing fee for noncompetitive lease applications. The amount changes from year to year, and can be found at 43 C.F.R. § 3200.12. 43 C.F.R. § 3203.12.
3-FD-a.4 to 3-FD-a.7 – Review Application for Approval
The BLM reviews the noncompetitive lease for direct use application for approval following the submission from the developer. The BLM may issue the direct lease only if the following conditions are satisfied:
- The lands included in the lease application are open for geothermal leasing;
- The BLM determines that the lands are appropriate for exclusive direct use operations, without sale, for purposes other than commercial generation of electricity;
- The acreage covered by the lease application is not greater than the quantity of acreage that is reasonably necessary for the proposed use;
- The BLM publishes a notice of the land proposed for direct use leasing for at least 90 days before the issuance of the lease;
- During the 90-day period beginning on the date of the publication, the BLM did not receive any nomination to include the lands concerned in the next competitive lease sale;
- The BLM determines there is no competitive interest in the resource; and
- The applicant is the first qualified applicant.
If the BLM finds that there is a competitive interest in the resource, the BLM will offer the land for competitive leasing, with the conditions that the land is to be used for direct use only. 43 C.F.R. § 3205.6.
The BLM issues a Geothermal Lease to the developer if the application is approved and notifies the developer in writing if the application is denied. 43 C.F.R. § 3205.15.
3-FD-a.8 – Does the Developer Hold a Mining Claim with a Current Federally Approved Plan of Operations?
If the developer holds a mining claim with a currently federally approved plan of operations, the developer may apply for a noncompetitive lease for lands within the mining claim. 43 C.F.R. § 3204.5. There is no limit in these circumstances to the amount of utilization of the resource, which may be used directly, sold to a purchaser, or for the commercial generation of electricity.
3-FD-a.9 to 3-FD-a.10 – Noncompetitive Lease Subject to Mining Claim Application (Form 3200-024a)
A developer must apply for a noncompetitive lease subject to a mining claim by submitting two copies of Offer Lease and Lease for Geothermal Resources (Form 3200-024a) to the BLM. 43 C.F.R. § 3204.12.
The application must include documentation of the mining claim ownership and the current approved plan for mining operations, as well as an application fee of 450 USD for FY 2022. 43 C.F.R. §§ 3200–3279, Geothermal Resource Leasing. At least one of the two submitted copies must be signed by the developer.
In addition, the developer must pay the first year’s advance rent of one dollar per acre for the project. 43 C.F.R. §§ 3200–3279, Geothermal Resource Leasing.
3-FD-a.11 to 3-FD-a.14 – Review Application for Approval
The BLM will review the application for approval and issue a geothermal lease if the application is granted or return the advance payment to the developer if the application is denied. 43 C.F.R. §§ 3200–3279, Geothermal Resource Leasing.
3-FD-a.15 to 3-FD-a.16 – Was The Land Not Sold at a Competitive Lease Sale?
If lands available at an auction for competitive geothermal leasing do not receive a competitive bid, the BLM may offer the land for noncompetitive leasing for up to two years following the sale date. 30 U.S.C. § 1003(c). For the first 30 days after the lease sale, only the parcels as configured in the Notice of Competitive Lease Sale are available for noncompetitive leasing. After the initial 30 days, the BLM offers all available lands available in the lease sale. 43 C.F.R. § 3204.11.
If lands received a competitive bid, they are not available for noncompetitive leasing. For more information on the geothermal leasing process, see:
Federal Geothermal Leasing:
3-FD-a
3-FD-a.17 – Noncompetitive Lease for Lands Not Sold at Competitive Lease Sale (Forms 3200-024a)
The developer must submit a noncompetitive lease application by executing two copies of Form 3200-024a for lands on which no bid was received at a competitive lease sale following the end of the lease sale. 43 C.F.R. § 3204.11(a).
3-FD-a.18 to 3-FD-a.20 – Review Application for Approval
The BLM will offer the lease to the first qualified applicant who applies for the lease beginning the day after the lease sale ends. 43 C.F.R. § 3204.11(a). In addition, the developer must pay an application fee. The amount changes from year to year, and can be found at 43 C.F.R. § 3200.12. 43 C.F.R. § 3203.12. The lease is granted when the BLM signs the lease, with an effective date beginning on the month after. 43 C.F.R. § 3204.11(a).
Agencies
Contact Information
Suggest a contact using the Feedback button above.Suggest edits using the Feedback button above.
Regulations
References