§ 3250.0-6 Policy.

It is the policy of this Department to encourage the development and utilization of geothermal resources leased under the Geothermal Steam Act of 1970 in an environmentally acceptable manner. Granting of a lease carries an implied right to reasonable access and land use for development. The provisions of these regulations shall be applied, however, in order to assure reasonable compatibility of a power plant site with other authorized uses and resource values of the land.

§ 3250.1 Applications.

§ 3250.1-1 Requirements for application. Any lessee or any party to a joint utilization agreement or a sales contract who has completed a producible well or wells and desires a license to use the surface of lands under Federal geothermal lease for construction of

an

electric generating plant, other than as provided in 30 CFR Part 270 and § 3250.4 of this subpart, shall file an application for such license with the authorized officer.

(a) An application for a license shall be filed in duplicate in the proper BLM office.

(b) Each application must be accompanied by a non-refundable fee of $50. (c) No specific form is required. (d) Each application shall include: (1) A description of the land applied for by legal subdivision, section, township and range, or by approved protraction surveys, if applicable. If the lands have not been surveyed, the lands shall be described by metes and bounds, giving courses and distances between the successive angle points on the boundary of the tract and connected by courses and distances to an official corner of the public land surveys or a prominent readily identifiable geographic location. The approximate acreage involved shall be included as part of the description.

(2) A map or maps showing the boundaries of the site and the location and dimensions of buildings, cooling towers or ponds, waste disposal or storage sites, switch yards, roads, pipelines, utility service lines, transmission lines, and all other structures or facilities to be used in connection with the

utilization of the geothermal steam and associated geothermal resources. In addition, the authorized officer may require maps showing the general location of proposed facilities to be used in connection with the power plant site but outside the license area.

(3) A description of the proposed power plant, including the number and capacity of prime movers and generators proposed to be installed, initially and ultimately, together with similar pertinent information about any substations included in the facility. A prime mover is a machine (turbine) that converts a natural force into productive power. The application shall show whether the proposed power plant is to be interconnected with other generating facilities owned by the applicant or others, and whether the power generated is to be sold to others or used by the applicant for its own commercial or industrial purposes.

(4) A copy of any joint utilization agreement or sales contract entered into with a Federal geothermal lessee or lessees and the applicant for the utilization of geothermal steam and associate geothermal resources.

(5) A statement showing the amount of merchantable timber, if any, to be cut, removed or destroyed in the construction of the proposed plant or facility, and a statement of agreement to deposit with the Bureau of Land Management, in advance of contruction, the dollar amount as determined by the authorized officer to be the full stumpage value of the timber to be cut, removed or destroyed.

§ 3250.1-2 Showing of citizenship.

Licenses shall be issued only to citizens of the United States, associations of such citizens, corporations organized under the laws of the United States, any State or the District of Columbia or governmental units, including, without limitation, municipalities. Applicants shall make showings of citizenship as follows:

(a) Individuals shall furnish a statement of their citizenship.

(b) Associations of individuals, including a partnership, shall furnish a copy of the articles of association, if

any. The application must be signed by each member of the association, and be accompanied by a statement of citizenship of each member.

(c) Corporations. (1) A private corporation shall furnish a copy of its charter or articles of incorporation, duly certified by the proper State official of the State where the corporation was organized, and a copy of the resolution or by-laws authorizing the proposed action.

(2) A corporation, other than a private corporation, including a municipality or governmental unit, shall file (i) a statement showing that it is authorized to construct and operate a plant for utilization of geothermal steam or associated geothermal resources; (ii) a statement that the officer executing the application is authorized to act on behalf of the applicant; and (iii) a copy of its governing body's resolution authorizing such action.

(3) When a corporation is operating in a State other than the State in which it was incorporated, it shall submit a certificate of the Secretary of State or other proper official of the State in which it is operating, asserting that the corporation has complied with the laws of that State governing foreign corporations to the extent required to entitle the corporation to operate in such State.

(4) If a corporation has previously filed with the Bureau of Land Management the papers required in this section, the requirements shall be held to be met if, in making a subsequent application, specific reference is made to such previous filing by date, place and case number.

§ 3250.2 Action on application.

Where the authorized officer determines that an application is incomplete or not in conformity with the law or regulations, he shall notify the applicant of the deficiencies and provide an opportunity for correction of the deficiency.

§ 3250.3 Environmental analysis.

The authorized officer, in cooperation with the U.S. Geological Survey, shall conduct a technical examination/environmental analysis in con

nection with an application for a license filed under this subpart.

(a) The technical examination shall include an evaluation of the impacts of the operation covered by the license on other land uses, resources or land management programs on or adjacent to the area covered by the license in order to determine the appropriate terms and conditions to be incorporated in such license, as well as consultation with State and local jurisdications as may be appropriate.

(b) The environmental analysis shall be performed in cooperation or consultation with such Federal, State and local authorities as may be appropri ate.

(c) The environmental analysis shall include an analysis of the impact of the proposed operations set forth in the application and a determination as to whether an environmental impact statement (EIS) is required.

§ 3250.4 Actions not requiring a license. § 3250.4-1 Research and demonstration projects.

A research and demonstration (R. & D.) project sited on a Federal geothermal lease consisting of a power generating facility of not more than 20 MW's electrical capacity and with a maximum life of five years from the date the facility becomes operational will not require a license under the regulations of this subpart. An R. & D. permit for a facility of 20 MW's or less shall be obtained from the Area Geothermal Supervisor under the provisions of 30 CFR Part 270. In the event an R. & D. project is proposed to be retained for commercial operation after the initial five-year period, a license shall be obtained under this subpart. Application for such a license may be submitted prior to construction or at any time during the 5 year permitted life period of the R. & D. project if conversion of the facility to a power plant is contemplated during the permit period. R. & D. permits granted under 30 CFR Part 270 shall conform to the provisions of § 3200.0-8 of this title.

§ 3250.4-2 Individual well production utilization.

A license shall not be required for the purpose of installing a facility for testing or utilization of the production from an individual well for either electrical power generation or any nonelectrical beneficial use. In order to install such facility, a permit shall be obtained from the Area Geothermal Supervisor, U.S. Geological Survey under the provisions of 30 CFR Part 270. Permits granted under 30 CFR Part 270 shall conform to the provisions of § 3200.0-8 of this title. However, a license shall be required for any substation or facility for transmission or lease of more than 10 MW maximum output.

§ 3250.5 Action required on designated lands.

§ 3250.5-1 Withdrawn or reserved lands.

(a) Where the land sought for a power plant site utilizing geothermal steam or associated geothermal resources is withdrawn or reserved for the use of a Federal Agency other than Interior, the authorized officer shall consult with such other agency before the license is issued. The license shall include any terms and conditions required by the surface managing agency.

(b) Where the land sought for a power plant site utilizing geothermal resources is withdrawn or reserved for the use of an Interior agency, the authorized officer shall consult with such agency before the license is issued. The license shall include any terms and conditions deemed appropriate by the authorized officer.

§ 3250.5-2 Lands under the jurisdiction of the Forest Service.

Where the land sought for a power plant site utilizing geothermal resources is on any National Forest System lands, the authorized officer shall consult with and obtain the agreement of the Forest Service regarding the specific site selection before the license is issued. The license shall include terms and conditions required by the Forest Service for protection of National Forest re

No license shall be issued for lands which are not subject to leasing for development of geothermal resources, including, but not limited to, lands:

(a) Administered as part of the national park system,

(b) Within a national recreation system,

(c) Within a fish hatchery administered by the Secretary, wildlife refuge, wildlife range, game range, wildlife management area, waterfowl production area, or for lands acquired or reserved for the protection and conservation of fish and wildlife that are threatened with extinction, or which are designated as rare and endangered species by the Secretary, or under active consideration for inclusion in such categories as evidenced by the filing of a application for a withdrawal or a proposed withdrawal, or

(d) Held in trust or restricted status for an Indian tribe or individual, within or without the boundaries of an Indian reservation.

§ 3250.6 Licenses.

§ 3250.6-1 Area covered by license.

(a) The area approved for the proposed power plant shall be reasonably compact as determined by the authorized officer and shall be limited to as much of the surface of the lands applied for as the authorized officer determines necessary for the adequate utilization of the geothermal re

sources.

Prior to commencing any surface disturbing activities related to the con

struction of a power plant facility licensed under provisions of this chapter, a permit to construct and operate a power facility shall be obtained from the Area Geothermal Supervisor. The application for such permit shall be filed in triplicate with the Supervisor, as provided under the regulations set forth in 30 CFR Part 270.

§ 3250.6-2 License provisions.

(a) A license for an electical power plant shall be granted for a primary term of 30 years with a preferential right to a renewal of such license under such terms and conditions as the Secretary may deem appropriate.

(b) A license shall include such terms and conditions as the authorized officer determines are necessary to protect the mineral, environmental, fish and wildlife, historical and scenic or other resource values of the public lands.

(c) A license shall require a copy of any utility commission license or other Federal, State or local license or permit that is applicable to the proposed power plant to be furnished prior to commencement of any activity relating to plant operation.

§ 3250.6-3 Annual rental.

Rental at a rate to be determined by the authorized officer shall be paid annually, but in no event shall said rental be less than $100 per acre. The first year's rental shall be paid to the authorized officer before issuance of the license and thereafter the rental shall be payable annually on or before the anniversary date of the license. The license shall provide that, beginning with the tenth year, the rental for the lands embraced in the license shall be reassessed, excluding improvements due to development of the geothermal resources, at the discretion of the authorized officer upon notice to the licensee, but not more often than at 10 year intervals thereafter, except in extraordinary circumstances.

§ 3250.7 Bonds. Bonds shall be either corporate surety bonds or personal bonds. (a) Surety bond. The licensee shall furnish and maintain a surety bond of not less than $100,000 conditioned upon compliance with all the terms

and conditions of the license. The amount of the bond may be increased at any time that it is deemed proper by the authorized officer.

(b) Personal bond. In lieu of a surety bond, the licensee may submit a personal bond accompanied by cash in an amount equal to the dollar amount of the bond or negotiable securities of the United States having a market value at the time of the deposit of not less than the required dollar amount of the bond.

(c) Obligations under bond. The licensee shall comply with all the terms and conditions of the license under this subpart and shall be (1) liable for all damages to the lands or property of the United States caused by the licensee or his employees or contractors or employees of such contractors, and (2) indemnify the United States against any liability for damages to life, person or property arising from the occupancy or use of the lands under license. Where a power plant license is granted under these regulations to a State or other governmental agency which has no legal power to assume such liability with respect to damages caused by it to lands or property, such agency will be responsible for repair of all such damages.

§ 3250.8 Assignments and transfers.

(a) Any proposed transfers in whole or in part of any right, title or interest in the plant or facility licensed under this subpart must be filed with the authorized officer. The application for transfer must be accompanied by the same showing of qualifications of the transferee as is required of the applicant under this subpart, and must be supported by a stipulation that the assignee will comply with and be bound by all the terms and conditions of the license. No transfer will be valid unless and until it is approved in writing by the authorized officer.

(b) An application for approval of an assignment or transfer made pursuant to this section shall be accompanied by a non-refundable fee of $50.

§ 3250.9 Relinquishment, expiration, or termination of license.

(a) A licensee may surrender a license by filing a written relinquishment, in triplicate, in the proper BLM office. The relinquishment shall include a statement as to whether the land covered by the license has been disturbed and, if so, whether it has been restored as prescribed by the terms and conditions of the license. The relinquishment will not be accepted until the requirements for reclamation of the land have been met.

(b) A license issued under this part may be terminated by written order of the authorized officer for any violation of any applicable regulation or any license term or condition, after 30 days notice. However, the termination shall not take effect if within the 30 day notice period either (1) the violation is corrected or (2) the licensee has commenced in good faith to correct the violation and shall thereafter proceed diligently to correct the violation where the violation is such that it cannot be corrected within the notice period. If a request for appeal is filed within the 30 day notice period, then the licensee shall be entitled to a hearing on the claimed violation and the termination in accordance with Part 4 of this title. In the event such appeal is timely filed, the period for commencement to correct such violation shall be extended to 30 days after a final decision is rendered if it is found that a violation exists.

(c) Upon the relinquishment, expiration, or termination of the license, the licensee shall, if directed by the authorized officer, remove all structures, machinery, and other equipment from the land covered by the license. Any structures, machinery, or equipment allowed to remain on the land shall become the property of the United States on the expiration of the period allowed for removal of same. Removal of such property shall be at the licensee's expense.

(d) The licensee shall, for a period of not more than six months, maintain any equipment and facilities needed, as determined by the Area Geothermal Supervisor, for the protection of any wells from which production was being utilized by the licensee.