Page 325 TITLE 30—MINERAL LANDS AND MINING § 1512

Sec.

(k) Reinsurance agreements; procedures

applicable; criteria; report to Congress.

SUBCHAPTER III—ESTABLISHMENT OF

ASSISTANCE PROGRAM

1531. Feasibility study loan program.

(a) Authorization; purposes.

(b) Maximum amount of loan for costs of

administration; cancellation of unpaid balance and accrued interest.

(c) Maximum amount of loan for costs of

construction.

(d) Interest rate; term.

(e) Funding; deposit of amount repaid.

(f) Authorization of appropriations.

(g) ‘‘Person’’ defined.

SUBCHAPTER IV—FEDERAL FACILITIES

1541. Use of geothermal energy in Federal facilities.

1542. Regulations.

§ 1501. Congressional statement of findings

The Congress finds that—

(1) domestic geothermal reserves can be developed into regionally significant energy

sources promoting the economic health and

national security of the Nation;

(2) there are institutional and economic barriers to the commercialization of geothermal

technology; and

(3) Federal agencies should consider the use

of geothermal energy in the Government’s

buildings.

(Pub. L. 96–294, title VI, §602, June 30, 1980, 94

Stat. 763.)

SHORT TITLE

Section 601 of title VI of Pub. L. 96–294 provided that:

‘‘This title [enacting this chapter and sections 1146 and

1147 of this title and amending sections 1141 and 1143 of

this title and sections 796, 824a–3, 824i, and 824j of Title

16, Conservation] may be cited as the ‘Geothermal Energy Act of 1980’.’’

SUBCHAPTER I—PROJECT LOANS

§ 1511. Loans for geothermal reservoir confirmation

(a) Authorization; purposes

The Secretary of Energy (hereafter in this

chapter referred to as the ‘‘Secretary’’) is authorized to make a loan to any person, from

funds appropriated (pursuant to this subchapter)

to the Geothermal Resources Development Fund

established under section 1144 of this title, to assist such person in undertaking and carrying out

a project which (1) is designed to explore for or

determine the economic viability of a geothermal reservoir and (2) consists of surface exploration and the drilling of one or more exploratory wells.

(b) Repayment rates

Subject to subsection (c) of this section and to

section 1513(b) of this title, any loan under subsection (a) of this section shall be repayable out

of revenue from production of the geothermal

energy reservoir with respect to which the loan

was made, at a rate, in any year, not to exceed

20 per centum of the gross revenue from the reservoir in that year; except that if any disposition of the geothermal rights to the reservoir is

made to one or more other persons by the borrower, the full amount of the loan balance outstanding, or so much of the loan balance outstanding as is equal to the full amount of the

compensation realized by the borrower upon

such disposition, whichever is less, shall be repaid immediately. In any case where the reservoir is confirmed (as determined by the Secretary), the Secretary may impute a reasonable

revenue for purposes of determining repayment

if—

(1) reasonable efforts are not made to put

such reservoir in commercial operation,

(2) the borrower (or any such other person)

utilizes the resources of the reservoir without

a sale of the energy or geothermal energy resources therefrom, or

(3) a sale of energy or geothermal energy resources from the reservoir is made for an unreasonably low price;

except that no such imputation of revenue shall

be made during the three-year period immediately following such reservoir confirmation. In

the event of failure to begin production of revenue (or, where no sale of energy or geothermal

energy resources is made, to begin production of

energy for commercial use) within five years

after the date of such reservoir confirmation,

the Secretary may take action to recover the

value, not to exceed the amount of the unpaid

balance of the loan plus any accrued interest

thereon, of any assets of the project in question,

including resource rights.

(c) Cancellation of unpaid balance and accrued

interest

The Secretary may at any time cancel the unpaid balance and any accrued interest on any

loan made under this section if he determines,

on the basis of evidence presented by the loan

recipient or otherwise, that the geothermal energy reservoir with respect to which the loan

was made has characteristics which make that

reservoir economically or technically unacceptable for commercial development.

(d) ‘‘Person’’ defined

As used in this subchapter, the term ‘‘person’’

includes municipalities, electric cooperatives,

industrial development agencies, nonprofit organizations, and Indian tribes, as well as the entities included within such term under section 1 of

title 1.

(Pub. L. 96–294, title VI, §611, June 30, 1980, 94

Stat. 763.)

REFERENCES IN TEXT

This chapter, referred to in subsec. (a), was in the

original ‘‘this title’’, meaning title VI of Pub. L. 96–294,

June 30, 1980, 94 Stat. 763, known as the Geothermal Energy Act of 1980. For complete classification of title VI

to the Code, see Short Title note set out under section

1501 of this title and Tables.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1512, 1513, 1514

of this title.

§ 1512. Loan size limitation

The amount of any loan made under section

1511(a) of this title with respect to a project de-