Geothermal - UtahGeothermal - Utah

Program - GeneralProgram - General Areas of Geothermal Potential – Areas of Geothermal Potential –

Prospectively Valuable and Known Prospectively Valuable and Known Geothermal Resource Areas (KGRA)Geothermal Resource Areas (KGRA)

Land Use PlansLand Use Plans Operations Permitting Operations Permitting

Program - GeneralProgram - General

Laws; regulations (43CFR3200) Laws; regulations (43CFR3200) exploration, leasing, operations, exploration, leasing, operations, utilization, & units, etc.; national and utilization, & units, etc.; national and local orderslocal orders

National Energy Policy, BLM National Energy Policy, BLM Implementation Plan, TasksImplementation Plan, Tasks

BLM Mineral Policy BLM Mineral Policy

Minerals PolicyMinerals Policy

Public Lands not withdrawn will be Public Lands not withdrawn will be available for exploration & available for exploration & developmentdevelopment

Encourage private industry to explore Encourage private industry to explore and develop resourcesand develop resources

Timely Process PermitsTimely Process Permits

Minerals PolicyMinerals Policy

Ensure land use plans recognize mineral Ensure land use plans recognize mineral development and reflect current informationdevelopment and reflect current information

Ensure proper resource recovery and Ensure proper resource recovery and maintain an efficient and effective I&E maintain an efficient and effective I&E programprogram

Maintain personnel knowledgeable in Maintain personnel knowledgeable in mineral extraction mineral extraction

Geothermal PotentialGeothermal Potential

Known Geothermal Resource Area Known Geothermal Resource Area (KGRA)(KGRA)

Prospectively ValuableProspectively Valuable Recent and Past StudiesRecent and Past Studies 1) National Renewable Energy 1) National Renewable Energy

Laboratory (NREL) – DOE 2003Laboratory (NREL) – DOE 2003 2) UGS Geothermal Resources of Utah 2) UGS Geothermal Resources of Utah

Open File Report 397:2002Open File Report 397:2002 3) USGS Circular 790: 19783) USGS Circular 790: 1978

Utah KGRAsUtah KGRAs

Prior to September 1, 1988, Utah Prior to September 1, 1988, Utah maintained 127,853 acres in KGRAs. After maintained 127,853 acres in KGRAs. After a 1988 lease sale (competitive interest), a 1988 lease sale (competitive interest), only 58,484 acres remained.only 58,484 acres remained.

Current KGRAs (59,125ac) are:Current KGRAs (59,125ac) are: 1) Cove Fort – Sulphurdale (24,853ac)1) Cove Fort – Sulphurdale (24,853ac) 2) Crater Hot Springs (8,320ac)2) Crater Hot Springs (8,320ac) 3) Roosevelt Hot Springs (25,311ac)3) Roosevelt Hot Springs (25,311ac) 4) Thermo Hot Springs (641ac)4) Thermo Hot Springs (641ac)

Prospectively ValuableProspectively Valuable

Lands prospectively valuable for Lands prospectively valuable for geothermal resources total geothermal resources total approximately 5.7 million acresapproximately 5.7 million acres

Located throughout Utah, but more Located throughout Utah, but more dominant in the central and western dominant in the central and western portions of the stateportions of the state

Land Use PlansLand Use Plans

Plans are an allocation of resources – Plans are an allocation of resources – What lands are available for leasing What lands are available for leasing with what restrictions (stipulations).with what restrictions (stipulations).

Current plans will be used until new Current plans will be used until new plans are developed, or existing plans are developed, or existing plans are revised .plans are revised .

Land Use PlansLand Use Plans

Supplemental Program Guidance – Supplemental Program Guidance – Minerals input into planning process. Minerals input into planning process. Potential, occurrence, RFD, and Potential, occurrence, RFD, and stipulations. stipulations.

Scheduled Updates and Revisions of Scheduled Updates and Revisions of Plans Identified as having near term Plans Identified as having near term potential.potential.

Participation – everyone invitedParticipation – everyone invited

ScheduleSchedule

Planning Areas Identified with Near Term Planning Areas Identified with Near Term PotentialPotential

1) Cedar, Beaver, Garfield, Antimony, RMP 1) Cedar, Beaver, Garfield, Antimony, RMP - 1984- 1984

2) Warm Springs Resource Area RMP – 2) Warm Springs Resource Area RMP – 19871987

3) House Range Resource Area RMP – 19863) House Range Resource Area RMP – 1986 New Plan for Cedar City Field Office – 2007New Plan for Cedar City Field Office – 2007 New Plan for Fillmore Field Office – not New Plan for Fillmore Field Office – not

scheduledscheduled

Operation PermittingOperation Permitting

Exploration Operations (3250)Exploration Operations (3250) Drilling Operations (3260)Drilling Operations (3260) Utilization Operations (3270)Utilization Operations (3270) Unitization (3280)Unitization (3280) Proposed action is filed by applicant; Proposed action is filed by applicant;

BLM reviews proposal, prepares NEPA BLM reviews proposal, prepares NEPA compliance record, and issues compliance record, and issues decision.decision.

Exploration PermittingExploration Permitting

Exploration operations (3250) are Exploration operations (3250) are activities associated with the search activities associated with the search for evidence of the geothermal for evidence of the geothermal resource. Such activities may resource. Such activities may include seismic operations, include seismic operations, temperature gradient holes, etc.temperature gradient holes, etc.

Geothermal Drilling Geothermal Drilling PermittingPermitting

Drilling Operations (3260) are the drilling of wells Drilling Operations (3260) are the drilling of wells for the purpose of performing flow tests, producing for the purpose of performing flow tests, producing geothermal fluids, or injecting fluids into a geothermal fluids, or injecting fluids into a geothermal reservoir. Geothermal Drilling Permit geothermal reservoir. Geothermal Drilling Permit requirements are contained in this part, and other requirements are contained in this part, and other well activity requirements (completion, sundries, well activity requirements (completion, sundries, abandonment, reporting, etc.).abandonment, reporting, etc.).

Operations Plan – describes how you will drill for Operations Plan – describes how you will drill for and test the geothermal resources. Surface use and test the geothermal resources. Surface use and drilling programs are described by the plan.and drilling programs are described by the plan.

Utilization PermittingUtilization Permitting

Utilization operations (3270) are the Utilization operations (3270) are the permitting and operating procedures permitting and operating procedures for the utilization of geothermal for the utilization of geothermal resources. This includes electrical resources. This includes electrical generation facilities, direct use generation facilities, direct use facilities, related utilization facility facilities, related utilization facility operations, actual and allocated well operations, actual and allocated well field production and injection, and field production and injection, and related well field operations.related well field operations.

Utilization PermittingUtilization Permitting

Requirements for plan of utilization, Requirements for plan of utilization, construction permit, site license, construction permit, site license, commercial use permit are include in commercial use permit are include in these regulations. these regulations.

Utilization PermittingUtilization Permitting

Utilization plan and Facility Construction Utilization plan and Facility Construction Permit describes the proposed facility Permit describes the proposed facility and its environmental protection and and its environmental protection and mitigation measures. Approval of the mitigation measures. Approval of the Facility Construction Permit allows you Facility Construction Permit allows you to build and test the utilization facility. to build and test the utilization facility. A Site License is required to site a A Site License is required to site a utilization facility on leased federal utilization facility on leased federal land.land.

Utilization PermittingUtilization Permitting

Commercial Use Permit is the Commercial Use Permit is the required authorization for required authorization for commercially operating a utilization commercially operating a utilization facility and/or utilizing Federal facility and/or utilizing Federal geothermal resources. The permit geothermal resources. The permit concentrates on metering needs and concentrates on metering needs and operating characteristics. operating characteristics.

Agreements/Contracts Agreements/Contracts

Unitization (3280) is the process of voluntary Unitization (3280) is the process of voluntary pooling of interest to develop a logical area for pooling of interest to develop a logical area for development of geothermal resources.development of geothermal resources.

Communitization is where individual leases can Communitization is where individual leases can not be independently developed due to well not be independently developed due to well spacing.spacing.

Operating, drilling or Development Contract cover Operating, drilling or Development Contract cover large scale operations for explorations, large scale operations for explorations, production, etc. production, etc.

Utah OrganizationUtah Organization

Utah State Office, Division of Lands Utah State Office, Division of Lands and Minerals – Records, leasing, and Minerals – Records, leasing, agreements & determinations, policy agreements & determinations, policy & guidance.& guidance.

Field Offices – Planning, operational Field Offices – Planning, operational approvals and compliance. Primary approvals and compliance. Primary BLM Offices involved are Richfield, BLM Offices involved are Richfield, Fillmore, and Cedar City.Fillmore, and Cedar City.

ENERGY POLICY ACT OF ENERGY POLICY ACT OF 20052005

Geothermal leasing will be all competitive Geothermal leasing will be all competitive and based on nominations. A sale would be and based on nominations. A sale would be held at least every two years if nominations held at least every two years if nominations of land exist. When lands are not sold of land exist. When lands are not sold during a competitive sale, they will be during a competitive sale, they will be available for two years on a noncompetitive available for two years on a noncompetitive basis.basis.

Pending lease applications are a priority. Pending lease applications are a priority. Utah does not have a backlog of pending Utah does not have a backlog of pending leases.leases.

ENERGY POLICY ACT OF ENERGY POLICY ACT OF 20052005

A new method for processing direct A new method for processing direct use applications for geothermal use applications for geothermal resources will be developed. A fee resources will be developed. A fee schedule will be used in lieu of schedule will be used in lieu of royalties (fair return for resources). royalties (fair return for resources). Leasing for direct use will be limited Leasing for direct use will be limited to an area reasonably needed for to an area reasonably needed for operations. operations.

ENERGY POLICY ACT OF ENERGY POLICY ACT OF 20052005

Simplified method for calculation of royalties Simplified method for calculation of royalties is to be developed. Existing leases may be is to be developed. Existing leases may be modified to any new methods developed modified to any new methods developed (royalty calculations or fee schedule).(royalty calculations or fee schedule).

Secretary of the Interior and the Secretary Secretary of the Interior and the Secretary Agriculture enter into a memorandum of Agriculture enter into a memorandum of understanding for geothermal leasing and understanding for geothermal leasing and permitting on federal land. permitting on federal land.

Energy Policy Act of 2005Energy Policy Act of 2005

United States Geological Survey in United States Geological Survey in cooperation with States will update cooperation with States will update assessment of geothermal resources.assessment of geothermal resources.

Administration of geothermal agreements Administration of geothermal agreements will be changing. Secretary may initiate will be changing. Secretary may initiate unit agreements, majority interest in single unit agreements, majority interest in single lease, pooling provisions, coordination with lease, pooling provisions, coordination with States on unitization and pooling. States on unitization and pooling.

Energy Policy Act of 2005Energy Policy Act of 2005

Royalty on byproductsRoyalty on byproducts

Annual rental, reinstatement, advanced Annual rental, reinstatement, advanced royalties for geothermal leases.royalties for geothermal leases.

Prepare joint report on leasing and Prepare joint report on leasing and permitting activities for geothermal energy permitting activities for geothermal energy on Federal lands withdrawn for military on Federal lands withdrawn for military purposes. purposes.