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Geothermal - Utah

Geothermal - Utah. Program - General Areas of Geothermal Potential – Prospectively Valuable and Known Geothermal Resource Areas (KGRA) Land Use Plans Operations Permitting. Program - General.

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Geothermal - Utah

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  1. Geothermal - Utah • Program - General • Areas of Geothermal Potential – Prospectively Valuable and Known Geothermal Resource Areas (KGRA) • Land Use Plans • Operations Permitting

  2. Program - General • Laws; regulations (43CFR3200) exploration, leasing, operations, utilization, & units, etc.; national and local orders • National Energy Policy, BLM Implementation Plan, Tasks • BLM Mineral Policy

  3. Minerals Policy • Public Lands not withdrawn will be available for exploration & development • Encourage private industry to explore and develop resources • Timely Process Permits

  4. Minerals Policy • Ensure land use plans recognize mineral development and reflect current information • Ensure proper resource recovery and maintain an efficient and effective I&E program • Maintain personnel knowledgeable in mineral extraction

  5. Geothermal Potential • Known Geothermal Resource Area (KGRA) • Prospectively Valuable • Recent and Past Studies 1) National Renewable Energy Laboratory (NREL) – DOE 2003 2) UGS Geothermal Resources of Utah Open File Report 397:2002 3) USGS Circular 790: 1978

  6. Utah KGRAs • Prior to September 1, 1988, Utah maintained 127,853 acres in KGRAs. After a 1988 lease sale (competitive interest), only 58,484 acres remained. • Current KGRAs (59,125ac) are: 1) Cove Fort – Sulphurdale (24,853ac) 2) Crater Hot Springs (8,320ac) 3) Roosevelt Hot Springs (25,311ac) 4) Thermo Hot Springs (641ac)

  7. Prospectively Valuable • Lands prospectively valuable for geothermal resources total approximately 5.7 million acres • Located throughout Utah, but more dominant in the central and western portions of the state

  8. Land Use Plans • Plans are an allocation of resources – What lands are available for leasing with what restrictions (stipulations). • Current plans will be used until new plans are developed, or existing plans are revised .

  9. Land Use Plans • Supplemental Program Guidance – Minerals input into planning process. Potential, occurrence, RFD, and stipulations. • Scheduled Updates and Revisions of Plans Identified as having near term potential. • Participation – everyone invited

  10. Schedule • Planning Areas Identified with Near Term Potential 1) Cedar, Beaver, Garfield, Antimony, RMP - 1984 2) Warm Springs Resource Area RMP – 1987 3) House Range Resource Area RMP – 1986 • New Plan for Cedar City Field Office – 2007 • New Plan for Fillmore Field Office – not scheduled

  11. Operation Permitting • Exploration Operations (3250) • Drilling Operations (3260) • Utilization Operations (3270) • Unitization (3280) • Proposed action is filed by applicant; BLM reviews proposal, prepares NEPA compliance record, and issues decision.

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

  13. Geothermal Drilling Permitting • Drilling Operations (3260) are the drilling of wells for the purpose of performing flow tests, producing geothermal fluids, or injecting fluids into a geothermal reservoir. Geothermal Drilling Permit requirements are contained in this part, and other well activity requirements (completion, sundries, abandonment, reporting, etc.). • Operations Plan – describes how you will drill for and test the geothermal resources. Surface use and drilling programs are described by the plan.

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

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

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

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

  18. Agreements/Contracts • Unitization (3280) is the process of voluntary pooling of interest to develop a logical area for development of geothermal resources. • Communitization is where individual leases can not be independently developed due to well spacing. • Operating, drilling or Development Contract cover large scale operations for explorations, production, etc.

  19. Utah Organization • Utah State Office, Division of Lands and Minerals – Records, leasing, agreements & determinations, policy & guidance. • Field Offices – Planning, operational approvals and compliance. Primary BLM Offices involved are Richfield, Fillmore, and Cedar City.

  20. ENERGY POLICY ACT OF 2005 • Geothermal leasing will be all competitive and based on nominations. A sale would be held at least every two years if nominations of land exist. When lands are not sold during a competitive sale, they will be available for two years on a noncompetitive basis. • Pending lease applications are a priority. Utah does not have a backlog of pending leases.

  21. ENERGY POLICY ACT OF 2005 • A new method for processing direct use applications for geothermal resources will be developed. A fee schedule will be used in lieu of royalties (fair return for resources). Leasing for direct use will be limited to an area reasonably needed for operations.

  22. ENERGY POLICY ACT OF 2005 • Simplified method for calculation of royalties is to be developed. Existing leases may be modified to any new methods developed (royalty calculations or fee schedule). • Secretary of the Interior and the Secretary Agriculture enter into a memorandum of understanding for geothermal leasing and permitting on federal land.

  23. Energy Policy Act of 2005 • United States Geological Survey in cooperation with States will update assessment of geothermal resources. • Administration of geothermal agreements will be changing. Secretary may initiate unit agreements, majority interest in single lease, pooling provisions, coordination with States on unitization and pooling.

  24. Energy Policy Act of 2005 • Royalty on byproducts • Annual rental, reinstatement, advanced royalties for geothermal leases. • Prepare joint report on leasing and permitting activities for geothermal energy on Federal lands withdrawn for military purposes.

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