19–010 

Calendar No. 315 

112TH CONGRESS REPORT " ! SENATE 2d Session 112–146 

GEOTHERMAL PRODUCTION EXPANSION ACT 

FEBRUARY 7, 2012.—Ordered to be printed 

Mr. BINGAMAN, from the Committee on Energy and Natural 

Resources, submitted the following 

R E P O R T 

[To accompany S. 1149] 

The Committee on Energy and Natural Resources, to which was 

referred the bill (S. 1149) to expand geothermal production, and for 

other purposes, having considered the same, reports favorably 

thereon with amendments and recommends that the bill, as 

amended, do pass. 

The amendments are as follows: 

1. Beginning on page 1, strike line 6 and all that follows through page 2, line 24. 

2. On page 3, line 1, strike ‘‘3’’ and insert ‘‘2’’. 

3. On page 3, line 15, after ‘‘acre’’, insert the following: ‘‘(taking into account the 

determination under subparagraph (B)(iii) regarding a valid discovery on the adjoining land)’’. 

4. On page 3, line 21, strike ‘‘90-day’’ and insert ‘‘180-day’’. 

5. On page 8, line 14, strike ‘‘180’’ and insert ‘‘270’’. 

PURPOSE

The purpose of S. 1149 is to expand geothermal production by allowing the issuance of noncompetitive leases under certain circumstances. 

BACKGROUND AND NEED

The development of geothermal resources on public lands and 

National Forest System lands is governed by the Geothermal 

Steam Act of 1970, as amended by the Energy Policy Act of 2005 

(30 U.S.C. 1001–1028). The Bureau of Land Management (BLM) 

has the responsibility of managing the geothermal leasing program 

on lands under the jurisdiction of the Department of the Interior 

and the Forest Service (FS) with the involvement of the FS on National Forest System lands. 


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In order to explore and develop geothermal resources on such 

lands, the developer must obtain a lease from the BLM. Pursuant 

to section 7 of the Geothermal Steam Act (30 U.S.C. 1006), a geothermal lease is not to exceed more than 5,120 acres. Interested 

parties can nominate available lands for leasing. With limited exceptions, the law requires that all areas to be leased be offered for 

lease on a competitive basis (30 U.S.C. 1002a(b)). BLM must hold 

a competitive lease sale every two years. If bids are not received 

for the lands offered, BLM must offer the lands on a noncompetitive basis for two years. Leases are issued for 10 years, and lessees 

are required to pay a royalty calculated as a percentage of gross 

proceeds from the sale of the electricity produced, or in the case of 

direct use geothermal, based on a fee schedule. Leasing and development can occur only if consistent with the relevant Federal land 

use plan and after compliance with the National Environmental 

Policy Act (NEPA). 

In the case of Federal lands adjoining proven geothermal properties, issues have arisen with respect to the requirement that Federal lands to be leased be subject to competitive leasing. First, with 

respect to this narrow category of lands, the requirement of competitive leasing can cause delay in the expansion of production of 

already-identified geothermal resources. Secondly, the competitive 

leasing requirement for these lands can allow speculative bidders 

who have no interest in actually developing geothermal resources 

to lease the lands adjoining proven resources. For this reason, geothermal developers may be reluctant to nominate these adjacent 

lands, so that this geothermal energy is not produced. 

BLM manages 818 leases on BLM and FS land, with 59 producing leases. Production from these leases accounts for over 40 

percent of U.S. geothermal energy capacity. According to BLM, 

these leases generated more than 4600 gigawatts of electrical 

power during 2010 and also provided heat sources for direct-use 

commercial businesses. Geothermal potential exists in 11 western 

states and Alaska. A Programmatic Environmental Impact Statement relating to the Federal Geothermal Leasing Program was finalized in 2008, and served as the basis for amending Federal land 

use plans to facilitate geothermal leasing. 

S. 1149 would amend the Geothermal Steam Act of 1970, as 

amended, to provide new authority for the Secretary of the Interior 

to issue leases of not greater than 640 acres on a noncompetitive 

basis for lands managed by the BLM and FS adjoining lands on 

which the qualified lessee has made a valid discovery, as defined 

by the bill. The bill provides that the lessee must pay fair market 

value per acre for the noncompetitive lease, as determined by the 

Secretary pursuant to regulation, with a statutory minimum. S. 

1149 requires public notice of the proposed issuance of the lease 

and notice to the lessee and the public of the fair market value determination. The bill requires the Secretary to provide an administrative appeal of the fair market value determination. In addition, 

the bill requires the lessee to pay the annual rentals required 

under competitive leases. 

LEGISLATIVE HISTORY

S. 1149 was introduced by Senator Wyden on June 7, 2011. Senators Crapo, Risch, Merkley, and Begich are co-sponsors. The SubVerDate Mar 15 2010 12:37 Feb 08, 2012 Jkt 019010 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\SR146.XXX SR146

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committee on Public Lands and Forests conducted a hearing on the 

measure on August 3, 2011. A companion bill, H.R. 2776, has been 

introduced in the House of Representatives and referred to the 

House Subcommittee on Energy and Mineral Resources. During the 

111th Congress, Senator Wyden introduced substantially similar 

legislation, S. 3993. No further action was taken on the measure. 

A companion measure, H.R. 3709, was introduced in the House of 

Representatives during the 111th Congress, and Subcommittee 

hearings were held on February 24, 2010. 

COMMITTEE RECOMMENDATION

The Committee on Energy and Natural Resources, in open business session on December 15, 2011, by a voice vote of a quorum 

present, recommends that the Senate pass S. 1149, if amended as 

described herein. 

COMMITTEE AMENDMENTS

During its consideration of S. 1149, the Committee adopted five 

amendments. Amendment 1 deletes section 2 of the bill relating to 

findings. Amendment 2 makes a conforming change. Amendment 3 

amends the definition of ‘‘fair market value’’ to take into account 

the information and determination under section 4(b)(4)(B)(iii) of 

the Geothermal Steam Act of 1970 regarding the presence of a 

valid discovery on the adjoining land. Amendment 4 extends the 

deadline for the determination of fair market value of a lease from 

90 days to 180 days after the Secretary receives an application for 

a lease. Amendment 5 extends the deadline for the Secretary to 

issue regulations from 180 days to 270 days. 

SECTION-BY-SECTION ANALYSIS

Section 1 provides that this Act may be cited as the ‘‘Geothermal 

Production Expansion Act of 2011’’. 

Section 2 amends section 4(b) of the Geothermal Steam Act of 

1970 (30 U.S.C. 1003(b)) by adding a new paragraph (4) to address 

adjoining land. 

New paragraph (4)(A) sets forth definitions. 

New paragraph (4)(A)(i) defines ‘‘fair market value per acre’’ as 

a dollar amount equal to the market value per acre as determined 

by the Secretary (taking into account the determination under subparagraph (B)(iii) regarding a valid discovery on the adjoining 

land) under applicable regulations; requires that the amount be determined by the Secretary for a lease under this paragraph by not 

later than the 180–day period beginning on the date the Secretary 

receives an application for a lease; and is not less than the greater 

of 4 times the median amount paid per acre for all land leased during the preceding year or $50. 

New paragraph (4)(A)(ii) defines ‘‘industry standards’’ and is selfexplanatory. 

New paragraph (4)(A)(iii) defines ‘‘qualified federal land’’ as land 

that is otherwise available for leasing under the Geothermal Steam 

Act of 1970, as amended. 

New paragraph (4)(A)(iv) defines ‘‘qualified geothermal professional’’ and is self-explanatory. 


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New paragraph (4)(A)(v) defines ‘‘qualified lessee’’ and is self-explanatory. 

New paragraph (4)(A)(vi) defines ‘‘valid discovery’’ as a discovery 

of a geothermal resource by a new or existing slim hole or production well that exhibits temperature with measurements with indications of permeability as specified that are sufficient to meet industry standards. 

New paragraph (4)(B) provides that an area of qualified Federal 

land of not less than 1 acre and not more than 640 acres that adjoins other land for which a qualified lessee holds a legal right to 

develop geothermal resources may be available for a noncompetitive lease to a qualified lessee at the fair market value per acre if 

it is not already leased under the Geothermal Steam Act or nominated to be leased under that Act. The qualified lessee may not receive the noncompetitive lease if the lessee has previously received 

a noncompetitive lease in connection with the valid discovery. The 

qualified lessee must submit sufficient geological and technical 

data that would lead individuals experienced in the subject matter 

to believe that there is a valid discovery of geothermal resources 

on the land for which the qualified lessee holds the right to develop 

geothermal resources and the thermal feature is extending into the 

adjoining areas. 

New paragraph (4)(C)(i) addresses the determination of fair market value by the Secretary and sets forth requirements as specified 

regarding notice to the public and to the lessee. The paragraph also 

requires that the Secretary provide to the qualified lessee and any 

adversely affected party the opportunity to appeal the final determination of fair market value. 

New paragraph (4)(C)(ii) provides that after publication of a notice of request to lease land under this paragraph, the Secretary 

may not accept an application under subsection (a) for leasing unless the request has been denied or withdrawn. 

New paragraph (4)(C)(iii) provides that leases issued under this 

paragraph shall be considered a competitive lease for purposes of 

the level of the annual rental payment. 

New paragraph (4)(D) requires the Secretary to issue regulations 

to carry out this paragraph not later than 270 days after the date 

of enactment. 

COST AND BUDGETARY CONSIDERATIONS

The following estimate of costs of this measure has been provided 

by the Congressional Budget Office: 

S. 1149—Geothermal Production Expansion Act of 2011 

S. 1149 would authorize the Bureau of Land Management (BLM) 

to award leases for certain federal lands on a noncompetitive basis 

for the development of geothermal resources. Based on information 

provided by BLM, the Department of Energy (DOE), and individuals working in the geothermal industry, CBO estimates that implementing the legislation would have no significant impact on the 

federal budget over the 2012–2022 period. Enacting S. 1149 could 

affect direct spending; therefore, pay-as-you-go procedures apply. 

However, CBO estimates that the net effect on direct spending 

would not be significant in any year. Enacting the legislation would 

not affect revenues. 


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S. 1149 would authorize BLM to offer noncompetitive leases of 

up to 640 acres for lands adjacent to known geothermal discoveries. 

Under the bill, a company that identified a geothermal resource 

that extended onto federal land adjacent to company-controlled 

lands could acquire the lease for a specified amount (bonus bid) determined by BLM to be equivalent to the fair market value rather 

than an amount determined through a competitive auction. In addition to paying fair market value for the parcel, the bill would require any company awarded such a noncompetitive lease to make 

annual rental payments equal to those required for lands that are 

leased competitively. Finally, a company could receive only one 

noncompetitive lease for each known geothermal discovery. 

Under current law, 75 percent of all receipts from bonus bids, 

rents, and royalties related to the development of geothermal resources on federal lands is paid to the states and counties in which 

those lands are located. The remaining 25 percent is deposited in 

the U.S. Treasury. CBO estimates that awarding noncompetitive 

leases for lands adjacent to known geothermal discoveries could reduce bonus bids on those parcels; however, because the legislation 

would require the companies that are awarded those leases to pay 

fair market value for them, we estimate that implementing the bill 

would not reduce the amount of receipts deposited in the U.S. 

Treasury by more than $500,000 in any year. 

In addition, based on information provided by DOE and individuals working in the geothermal industry, CBO expects that implementing S. 1149 could increase receipts from royalties paid on geothermal energy production by reducing the amount of time it takes 

to develop a known geothermal resource and by reducing the likelihood that lands containing geothermal resources would be acquired 

for speculative purposes. CBO estimates that any increase in the 

amount of royalty receipts that would be deposited in the U.S. 

Treasury would not exceed $500,000 in any year. Those amounts 

would offset any reduction in receipts from issuing noncompetitive 

leases under the bill. Thus, CBO estimates that implementing S. 

1149 would have no significant net impact on direct spending over 

the 2012–2022 period. 

The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on state, local, or tribal governments. 

The CBO staff contact for this estimate is Jeff LaFave. This estimate was approved by Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

REGULATORY IMPACT EVALUATION

In compliance with paragraph 11(b) of rule XXVI of the Standing 

Rules of the Senate, the Committee makes the following evaluation 

of the regulatory impact which would be incurred in carrying out 

S. 1149. 

The bill is not a regulatory measure in the sense of imposing 

Government-established standards or significant economic responsibilities on private individuals and businesses. 

No personal information would be collected in administering the 

program. Therefore, there would be no impact on personal privacy. 

Little, if any, additional paperwork would result from the enactment of S. 1149, as ordered reported. 


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CONGRESSIONALLY DIRECTED SPENDING

S. 1149, as reported, does not contain any congressionally directed spending items, limited tax benefits, or limited tariff benefits as defined in rule XLIV of the Standing Rules of the Senate. 

EXECUTIVE COMMUNICATIONS

The views of the Administration were included in testimony received by the Committee at a hearing on S. 1149 on August 3, 

2011, which is provided below. 

STATEMENT OF ROBERT ABBEY, DIRECTOR, BUREAU OF

LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR

Mr. Chairman and members of the Subcommittee thank 

you for the opportunity to provide the views of the Department of the Interior on S. 1149, the Geothermal Production Expansion Act. S. 1149 would amend the Geothermal 

Steam Act of 1970 to allow non-competitive leasing of Federal geothermal energy resources when a valid geothermal 

discovery is made on adjoining lands. The Bureau of Land 

Management (BLM) supports the goal of enhancing geothermal exploration and development by ensuring that 

valid discoveries can be responsibly developed. Accordingly, the BLM generally supports S. 1149, and believes 

that the bill’s provision that the Secretary of the Interior 

establish regulatory procedures for determining fair market values of adjoining lands is the most effective way to 

ensure a fair return to American taxpayers. The BLM has 

concerns with a few provisions in the legislation and would 

like to work with the Committee to address them. 

BACKGROUND

Geothermal energy resources on Federal lands are 

leased and managed in accordance with the Geothermal 

Steam Act of 1970 (GSA), which was amended by the Energy Policy Act of 2005 (EPAct). The EPAct made extensive changes to the law governing geothermal leasing and 

royalty policies. The changes were designed to encourage 

geothermal energy development and simplify the royalty 

structure, while ensuring a fair return for the use of Federal lands and geothermal resources. The GSA, as amended, provides the BLM with the authority for leasing and 

managing geothermal resources on the public lands, and 

the delegated authority for leasing geothermal resources 

on lands managed by the U.S. Forest Service (FS). In 

2008, the BLM and FS jointly prepared and issued a Programmatic Environmental Impact Statement (PEIS) that 

analyzed the potential for geothermal leasing on their respective lands. Based on this analysis, the BLM and FS 

have opened 192 million acres to potential geothermal 

leasing. 

Federal geothermal resources have the potential to make 

an important contribution toward the President’s goal of 

increasing energy production from clean, renewable 


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sources. To date, the BLM has issued 818 geothermal 

leases that cover 1.2 million acres of Federal lands. Approximately 59 leases have reached producing status with 

a generating capacity of nearly 1,300 megawatts (MW). 

These producing leases account for more than 40 percent 

of current U.S. geothermal capacity. Despite this progress, 

the development of geothermal energy is just beginning, 

and its future role and importance is expected to increase 

significantly, from the current level to 12,200 MW by 2025, 

according to estimates in the 2008 PEIS. Notably, this is 

often baseload power that does not have the variable qualities of some other renewable sources and may pair well 

with them. 

The BLM’s geothermal leasing program is administered 

under regulations (43 CFR 3200 and 3280) issued in 2007 

to reflect the 2005 EPAct’s amendments to the GSA. 

Under these regulations, most leases for geothermal development on Federal lands are offered initially through competitive oral auctions, which are held about twice per year. 

Typically, the parcels offered at auction are nominated for 

lease by industry, but may also be nominated by the public, or by Federal, state, and local governments. Since competitive auctions began in 2007, a total of 366 geothermal 

leases have been sold, generating more than $74 million in 

revenue. In addition to the price paid at auction, geothermal lease holders pay annual per-acre rental fees until 

production begins. Thereafter, lease holders pay royalties 

or fees on production. 

Lease parcels that do not receive a bid at auction are 

made available for noncompetitive lease for a period of 2 

years, at a price of $1.00 per acre. In addition, noncompetitive geothermal leases may be offered under certain conditions for direct, on-site energy uses, which include the use 

of geothermal steam and hot water in greenhouses and 

aquaculture. Noncompetitive leases are also offered to 

qualified mining claim holders. 

S. 1149

S. 1149 seeks to focus Federal geothermal energy leasing 

activities toward entities that intend to develop geothermal resources rather than toward those who may intend to obtain leases for parcels with geothermal resources 

for speculative purposes. More specifically, the bill aims to 

address a practice whereby speculators purchase at auction Federal geothermal leases for parcels that are located 

adjacent to parcels of Federal or private land with existing 

geothermal leases or developments. This practice is viewed 

by some as an effort to capitalize upon another company’s 

geothermal exploration efforts, and is a disincentive for future geothermal investment and development. Because the 

geothermal competitive leasing program is open to all 

qualified bidders, the potential exists for such speculative 

activity. 

To address this concern, the legislation authorizes noncompetitive leasing of adjoining Federal geothermal reVerDate Mar 15 2010 12:37 Feb 08, 2012 Jkt 019010 PO 00000 Frm 00007 Fmt 6659 Sfmt 6969 E:\HR\OC\SR146.XXX SR146

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sources when a valid discovery of geothermal resources is 

made, and the geothermal resources are shown to extend 

into unleased Federal land. Under the bill, a Federal noncompetitive lease would be available only for areas not exceeding 640 acres that have not already been leased or 

nominated to be leased competitively. Only one noncompetitive lease could be issued for each valid geothermal 

discovery. 

To qualify for a noncompetitive lease under this legislation, an applicant would have to demonstrate, consistent 

with industry standards, a valid discovery of a geothermal 

resource. An applicant also would have to present sufficient geological and technical data showing that the geothermal resource extends into adjoining Federal lands. 

Section 3 of S. 1149 would amend Section 4(b) of the 

GSA to define fair market value per acre for the non-competitive lease. Under the provisions of Section 3, the lessee 

would pay fair market value for the non-competitive lease 

in accordance with regulations issued by the Secretary of 

the Interior. The bill would set a minimum price on how 

much the Secretary may determine the fair market value 

to be at not less than the greater of $50 per acre, or four 

times the median amount paid per acre for all land leased 

during the preceding year. 

This legislation would make proposed fair market value 

determinations open for public comment for a period of 30 

days and would allow a qualified lessee and any affected 

party to appeal a fair market value determination. Further, the lease awarded non-competitively would be assessed the annual rental rate of leases awarded competitively. 

The BLM supports the objective of S. 1149 to enhance 

geothermal development by increasing investor confidence 

that geothermal discoveries could be fully developed. Additionally, BLM supports a requirement that regulations be 

promulgated to establish procedures for determining the 

fair market value of leases on adjoining lands. 

The BLM is concerned, however, about the provision of 

S. 1149 that sets a minimum price on how much the Secretary may determine the fair market value to be. Though 

the minimum price set forth in the bill may provide some 

assurance of a return to American taxpayers, the price 

may not reflect a fair market value. The BLM believes 

that the provision is unnecessary, because under the bill, 

the Secretary would be required to establish procedures for 

determining fair market values of these leases. With these 

procedures, the BLM would consider a number of factors, 

including available information on the known resources 

and the value of other leases within the local market, in 

determining a price that is fair for that lease. Thus, the 

BLM recommends that the provision that sets a minimum 

price be removed from the bill. 

The BLM also has concerns with the timeframes included in the legislation. Specifically, the promulgation of 

regulations issued by the Secretary typically requires more 


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than 180 days. The 90 days provided in the bill for determining the fair market value of a lease may not be adequate to conduct such an evaluation. 

CONCLUSION

The BLM supports efforts to enhance geothermal exploration and development in the United States in a manner 

that is fair to geothermal developers and other participants in the competitive leasing process. We must ensure 

those efforts result in a fair return to the American taxpayers. Thank you for the opportunity to testify and I 

would be happy to answer any questions. 

CHANGES IN EXISTING LAW

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

ordered reported, are shown as follows (existing law proposed to be 

omitted is enclosed in black brackets, new material is printed in 

italic, existing law in which no change is proposed is shown in 

roman): 

GEOTHERMAL STEAM ACT OF 1970 

(Public Law No. 91–581, as amended) 

(30 U.S.C. 1001, et seq.) 

* * * * * * * 

SEC. 4. LEASING PROCEDURES. 

* * * * * * * 

(b) COMPETITIVE LEASE SALE REQUIRED.— 

* * * * * * * 

(4) ADJOINING LAND.— (A) DEFINITIONS.—In this paragraph: 

(i) FAIR MARKET VALUE PER ACRE.—The term ‘‘fair 

market value per acre’’ means a dollar amount per acre 

that— 

(I) except as provided in this clause, shall be 

equal to the market value per acre (taking into account the determination under subparagraph 

(B)(iii) regarding a valid discovery on the adjoining land) as determined by the Secretary under 

regulations issued under this paragraph; 

(II) shall be determined by the Secretary with respect to a lease under this paragraph, by not later 

than the end of the 180-day period beginning on 

the date the Secretary receives an application for 

the lease; and 

(III) shall be not less than the greater of— 

(aa) 4 times the median amount paid per 

acre for all land leased under this Act during 

the preceding year; or 

(bb) $50. 


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(ii) INDUSTRY STANDARDS.—The term ‘‘industry 

standards’’ means the standards by which a qualified 

geothermal professional assesses whether downhole or 

flowing temperature measurements with indications of 

permeability are sufficient to produce energy from geothermal resources, as determined through flow or injection testing or measurement of lost circulation while 

drilling. 

(iii) QUALIFIED FEDERAL LAND.—The term ‘‘qualified 

Federal land’’ means land that is otherwise available 

for leasing under this Act. 

(iv) QUALIFIED GEOTHERMAL PROFESSIONAL.—The 

term ‘‘qualified geothermal professional’’ means an individual who is an engineer or geoscientist in good professional standing with at least 5 years of experience in 

geothermal exploration, development, or project assessment. 

(v) QUALIFIED LESSEE.—The term ‘‘qualified lessee’’ 

means a person that may hold a geothermal lease 

under this Act (including applicable regulations). 

(vi) VALID DISCOVERY.—The term ‘‘valid discovery’’ 

means a discovery of a geothermal resource by a new 

or existing slim hole or production well, that exhibits 

downhole or flowing temperature measurements with 

indications of permeability that are sufficient to meet 

industry standards. 

(B) AUTHORITY.—An area of qualified Federal land that 

adjoins other land for which a qualified lessee holds a legal 

right to develop geothermal resources may be available for 

a noncompetitive lease under this section to the qualified 

lessee at the fair market value per acre, if— 

(i) the area of qualified Federal land— 

(I) consists of not less than 1 acre and not more 

than 640 acres; and 

(II) is not already leased under this Act or nominated to be leased under subsection (a); 

(ii) the qualified lessee has not previously received a 

noncompetitive lease under this paragraph in connection with the valid discovery for which data has been 

submitted under clause (iii)(I); and 

(iii) sufficient geological and other technical data 

prepared by a qualified geothermal professional has 

been submitted by the qualified lessee to the applicable 

Federal land management agency that would lead individuals who are experienced in the subject matter to 

believe that— 

(I) there is a valid discovery of geothermal resources on the land for which the qualified lessee 

holds the legal right to develop geothermal resources; and 

(II) that thermal feature extends into the adjoining areas. 

(C) DETERMINATION OF FAIR MARKET VALUE.— 

(i) IN GENERAL.—The Secretary shall— 


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(I) publish a notice of any request to lease land 

under this paragraph; 

(II) determine fair market value for purposes of 

this paragraph in accordance with procedures for 

making those determinations that are established 

by regulations issued by the Secretary; 

(III) provide to a qualified lessee and publish, 

with an opportunity for public comment for a period of 30 days, any proposed determination under 

this subparagraph of the fair market value of an 

area that the qualified lessee seeks to lease under 

this paragraph; and 

(IV) provide to the qualified lessee and any adversely affected party the opportunity to appeal the 

final determination of fair market value in an administrative proceeding before the applicable Federal land management agency, in accordance with 

applicable law (including regulations). 

(ii) LIMITATION ON NOMINATION.—After publication 

of a notice of request to lease land under this paragraph, the Secretary may not accept under subsection 

(a) any nomination of the land for leasing unless the 

request has been denied or withdrawn. 

(iii) ANNUAL RENTAL.—For purposes of section 

5(a)(3), a lease awarded under this paragraph shall be 

considered a lease awarded in a competitive lease sale. 

(D) REGULATIONS.—Not later than 270 days after the 

date of enactment of the Geothermal Production Expansion 

Act of 2011, the Secretary shall issue regulations to carry 

out this paragraph. 

* * * * * * * 

Æ 


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