I 

115TH CONGRESS 

1ST SESSION H. R. 4568 

To amend the Geothermal Steam Act of 1970 to promote timely exploration 

for geothermal resources under geothermal leases, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 6, 2017 

Mr. LABRADOR (for himself and Mr. GOSAR) introduced the following bill; 

which was referred to the Committee on Natural Resources 

A BILL 

To amend the Geothermal Steam Act of 1970 to promote 

timely exploration for geothermal resources under geothermal leases, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Enhancing Geothermal 

5 Production on Federal Lands Act’’. 

6 SEC. 2. GEOTHERMAL PRODUCTION ON FEDERAL LANDS. 

7 The Geothermal Steam Act of 1970 (30 U.S.C. 1001 

8 et seq.) is amended by adding at the end the following: 


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1 ‘‘SEC. 30. GEOTHERMAL EXPLORATION TEST PROJECTS. 

2 ‘‘(a) DEFINITION OF GEOTHERMAL EXPLORATION

3 TEST PROJECT.—In this section, the term ‘geothermal ex4 ploration test project’ means the drilling of a well to test 

5 or explore for geothermal resources on lands for which the 

6 Secretary has issued a lease under this Act, that— 

7 ‘‘(1) is carried out by the holder of the lease; 

8 ‘‘(2) causes— 

9 ‘‘(A) less than 5 acres of soil or vegetation 

10 disruption at the location of each geothermal 

11 exploration well; and 

12 ‘‘(B) not more than an additional 5 acres 

13 of soil or vegetation disruption during access or 

14 egress to the test site; 

15 ‘‘(3) is developed— 

16 ‘‘(A) 8 inches or less in diameter; 

17 ‘‘(B) in a manner that does not require 

18 off-road motorized access other than to and 

19 from the well site along an identified off-road 

20 route; 

21 ‘‘(C) without construction of new roads 

22 other than upgrading of existing drainage cross23 ings for safety purposes; and 

24 ‘‘(D) with the use of rubber-tired digging 

25 or drilling equipment vehicles; 


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1 ‘‘(4) is completed in less than 90 days, includ2 ing the removal of any surface infrastructure from 

3 the site; and 

4 ‘‘(5) requires the restoration of the project site 

5 within 3 years of the date of first exploration drilling 

6 to approximately the condition that existed at the 

7 time the project began, unless the site is subse8 quently used as part of energy development under 

9 the lease. 

10 ‘‘(b) CATEGORICAL EXCLUSION.— 

11 ‘‘(1) IN GENERAL.—Unless extraordinary cir12 cumstances exist, a project that the Secretary deter13 mines under subsection (c) is a geothermal explo14 ration test project shall be categorically excluded 

15 from the requirements for an environmental assess16 ment or an environmental impact statement under 

17 the National Environmental Policy Act of 1969 (42 

18 U.S.C. 4321 et seq.) or section 1508.4 of title 40, 

19 Code of Federal Regulations (or a successor regula20 tion). 

21 ‘‘(2) EXTRAORDINARY CIRCUMSTANCES DEFINI22 TION.—In this subsection, the term ‘extraordinary 

23 circumstances’ has the same meaning given such 

24 term in the Department of the Interior DepartVerDate Sep 11 2014 21:54 Dec 08, 2017 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4568.IH H4568

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1 mental Manual, 516 DM 2.3A(3) and 516 DM 2, 

2 Appendix 2 (or successor provisions). 

3 ‘‘(c) PROCESS.— 

4 ‘‘(1) REQUIREMENT TO PROVIDE NOTICE.—A 

5 leaseholder shall provide notice to the Secretary of 

6 the leaseholder’s intent to carry out a geothermal ex7 ploration test project at least 30 days before the 

8 start of drilling under the project. 

9 ‘‘(2) REVIEW AND DETERMINATION.—Not later 

10 than 10 days after receipt of a notice of intent 

11 under paragraph (1), the Secretary shall, with re12 spect to the project described in the notice of in13 tent— 

14 ‘‘(A) determine if the project qualifies for 

15 a categorical exclusion under subsection (b); 

16 and 

17 ‘‘(B) notify the leaseholder of such deter18 mination. 

19 ‘‘(3) OPPORTUNITY TO REMEDY.— 

20 ‘‘(A) IN GENERAL.—If the Secretary deter21 mines under paragraph (2)(A) that the project 

22 does not qualify for a categorical exclusion 

23 under subsection (b), the Secretary shall— 

24 ‘‘(i) include in such notice clear and 

25 detailed findings on any deficiencies in the 


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1 project that resulted in such determina2 tion; and 

3 ‘‘(ii) allow the leaseholder to remedy 

4 any such deficiencies and resubmit the no5 tice of intent under paragraph (1).’’. 

6 SEC. 3. GEOTHERMAL LEASING PRIORITY AREAS. 

7 The Geothermal Steam Act of 1970 (30 U.S.C. 1001 

8 et seq.) is further amended by adding at the end the fol9 lowing: 

10 ‘‘SEC. 31. GEOTHERMAL LEASING PRIORITY AREAS. 

11 ‘‘(a) DEFINITION OF COVERED LAND.—In this sec12 tion, the term ‘covered land’ means land that is— 

13 ‘‘(1) Federal land; and 

14 ‘‘(2) not excluded from the development of geo15 thermal energy under— 

16 ‘‘(A) a land use plan established under the 

17 Federal Land Policy and Management Act of 

18 1976 (43 U.S.C. 1701 et seq.); or 

19 ‘‘(B) any other Federal law. 

20 ‘‘(b) DESIGNATION OF GEOTHERMAL LEASING PRI21 ORITY AREAS.—The Secretary, in consultation with the 

22 Secretary of Energy, shall designate portions of covered 

23 land as geothermal leasing priority areas as soon as prac24 ticable, but not later than 5 years, after the date of the 

25 enactment of this section. 


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1 ‘‘(c) CRITERIA FOR SELECTION.—In determining 

2 which covered lands to designate as geothermal leasing 

3 priority areas under subsection (b), the Secretary, in con4 sultation with the Secretary of Energy, shall consider if— 

5 ‘‘(1) the covered land is preferable for geo6 thermal leasing; 

7 ‘‘(2) production of geothermal energy on such 

8 land is economically viable, including if such land 

9 has access to methods of energy transmission; and 

10 ‘‘(3) the designation would be in compliance 

11 with section 202 of the Federal Land Policy and 

12 Management Act of 1976 (43 U.S.C. 1712), includ13 ing subsection (c)(9) of that section. 

14 ‘‘(d) REVIEW AND MODIFICATION.—Not less fre15 quently than once every 10 years, the Secretary shall— 

16 ‘‘(1) review covered land and, if appropriate, 

17 make additional designations of geothermal leasing 

18 priority areas; and 

19 ‘‘(2) review each area designated as a geo20 thermal leasing priority area under this section, and, 

21 if appropriate, remove such designation. 

22 ‘‘(e) PROGRAMMATIC ENVIRONMENTAL IMPACT

23 STATEMENT.— 

24 ‘‘(1) INITIAL DESIGNATIONS.—Not later than 5 

25 years after the date of the enactment of this section, 


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1 the Secretary shall prepare a supplement to any 

2 final programmatic environmental impact statement 

3 for geothermal leasing that is the most recently fi4 nalized such statement with respect to covered land 

5 designated as a geothermal leasing priority area 

6 under subsection (b). 

7 ‘‘(2) SUBSEQUENT DESIGNATIONS.—Each des8 ignation of a geothermal leasing priority area under 

9 subsection (d) shall be included in a programmatic 

10 environmental impact statement for geothermal leas11 ing or in a supplement to such a statement. 

12 ‘‘(3) CONSULTATIONS.—In developing any pro13 grammatic environmental impact statement for geo14 thermal leasing or supplement to such a statement 

15 under this section, the Secretary shall consult, on an 

16 ongoing basis, with appropriate State, Tribal, and 

17 local governments, transmission infrastructure own18 ers and operators, developers, and other appropriate 

19 entities. 

20 ‘‘(4) PROCEDURE.—The Secretary may not 

21 delay issuing a permit or holding a lease sale under 

22 this Act because the supplement required under 

23 paragraph (1) has not been finalized by the Sec24 retary. 


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1 ‘‘(f) COMPLIANCE WITH NEPA.—If the Secretary 

2 determines that the designation of a geothermal leasing 

3 priority area has been sufficiently analyzed by a pro4 grammatic environmental impact statement, the Secretary 

5 shall not prepare any additional analysis under the Na6 tional Environmental Policy Act of 1969 (42 U.S.C. 4321 

7 et seq.) with respect to geothermal lease sales for such 

8 geothermal leasing priority area.’’. 

9 SEC. 4. FACILITATION OF COPRODUCTION OF GEO10 THERMAL ENERGY ON OIL AND GAS LEASES. 

11 Section 4(b) of the Geothermal Steam Act of 1970 

12 (30 U.S.C. 1003(b)) is amended by adding at the end the 

13 following: 

14 ‘‘(4) LAND SUBJECT TO OIL AND GAS LEASE.— 

15 Land under an oil and gas lease issued pursuant to 

16 the Mineral Leasing Act (30 U.S.C. 181 et seq.) or 

17 the Mineral Leasing Act for Acquired Lands (30 

18 U.S.C. 351 et seq.) that is subject to an approved 

19 application for permit to drill and from which oil 

20 and gas production is occurring may be available for 

21 noncompetitive leasing under subsection (c) by the 

22 holder of the oil and gas lease— 

23 ‘‘(A) on a determination that geothermal 

24 energy will be produced from a well producing 

25 or capable of producing oil and gas; and 


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1 ‘‘(B) in order to provide for the coproduc2 tion of geothermal energy with oil and gas.’’. 

3 SEC. 5. NONCOMPETITIVE LEASING OF ADJOINING AREAS 

4 FOR DEVELOPMENT OF GEOTHERMAL RE5 SOURCES. 

6 Section 4(b) of the Geothermal Steam Act of 1970 

7 (30 U.S.C. 1003(b)) is further amended by adding at the 

8 end the following: 

9 ‘‘(5) ADJOINING LAND.— 

10 ‘‘(A) DEFINITIONS.—In this paragraph: 

11 ‘‘(i) FAIR MARKET VALUE PER

12 ACRE.—The term ‘fair market value per 

13 acre’ means a dollar amount per acre 

14 that— 

15 ‘‘(I) except as provided in this 

16 clause, shall be equal to the market 

17 value per acre (taking into account 

18 the determination under subparagraph 

19 (B)(iii) regarding a valid discovery on 

20 the adjoining land) as determined by 

21 the Secretary under regulations issued 

22 under this paragraph; 

23 ‘‘(II) shall be determined by the 

24 Secretary with respect to a lease 

25 under this paragraph, by not later 


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1 than the end of the 180-day period 

2 beginning on the date the Secretary 

3 receives an application for the lease; 

4 and 

5 ‘‘(III) shall be not less than the 

6 greater of— 

7 ‘‘(aa) 4 times the median 

8 amount paid per acre for all land 

9 leased under this Act during the 

10 preceding year; or 

11 ‘‘(bb) $50. 

12 ‘‘(ii) INDUSTRY STANDARDS.—The 

13 term ‘industry standards’ means the stand14 ards by which a qualified geothermal pro15 fessional assesses whether downhole or 

16 flowing temperature measurements with 

17 indications of permeability are sufficient to 

18 produce energy from geothermal resources, 

19 as determined through flow or injection 

20 testing or measurement of lost circulation 

21 while drilling. 

22 ‘‘(iii) QUALIFIED FEDERAL LAND.— 

23 The term ‘qualified Federal land’ means 

24 land that is otherwise available for leasing 

25 under this Act. 


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1 ‘‘(iv) QUALIFIED GEOTHERMAL PRO2 FESSIONAL.—The term ‘qualified geo3 thermal professional’ means an individual 

4 who is an engineer or geoscientist in good 

5 professional standing with at least 5 years 

6 of experience in geothermal exploration, 

7 development, or project assessment. 

8 ‘‘(v) QUALIFIED LESSEE.—The term 

9 ‘qualified lessee’ means a person who may 

10 hold a geothermal lease under this Act (in11 cluding applicable regulations). 

12 ‘‘(vi) VALID DISCOVERY.—The term 

13 ‘valid discovery’ means a discovery of a 

14 geothermal resource by a new or existing 

15 slim hole or production well, that exhibits 

16 downhole or flowing temperature measure17 ments with indications of permeability that 

18 are sufficient to meet industry standards. 

19 ‘‘(B) AUTHORITY.—An area of qualified 

20 Federal land that adjoins other land for which 

21 a qualified lessee holds a legal right to develop 

22 geothermal resources may be available for a 

23 noncompetitive lease under this section to the 

24 qualified lessee at the fair market value per 

25 acre, if— 


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1 ‘‘(i) the area of qualified Federal 

2 land— 

3 ‘‘(I) consists of not less than 1 

4 acre and not more than 640 acres; 

5 and 

6 ‘‘(II) is not already leased under 

7 this Act or nominated to be leased 

8 under subsection (a); 

9 ‘‘(ii) the qualified lessee has not pre10 viously received a noncompetitive lease 

11 under this paragraph in connection with 

12 the valid discovery for which data has been 

13 submitted under clause (iii)(I); and 

14 ‘‘(iii) sufficient geological and other 

15 technical data prepared by a qualified geo16 thermal professional has been submitted by 

17 the qualified lessee to the applicable Fed18 eral land management agency that would 

19 lead individuals who are experienced in the 

20 subject matter to believe that— 

21 ‘‘(I) there is a valid discovery of 

22 geothermal resources on the land for 

23 which the qualified lessee holds the 

24 legal right to develop geothermal re25 sources; and 


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1 ‘‘(II) that geothermal feature ex2 tends into the adjoining areas. 

3 ‘‘(C) DETERMINATION OF FAIR MARKET

4 VALUE.— 

5 ‘‘(i) IN GENERAL.—The Secretary 

6 shall— 

7 ‘‘(I) publish a notice of any re8 quest to lease land under this para9 graph; 

10 ‘‘(II) determine fair market value 

11 for purposes of this paragraph in ac12 cordance with procedures for making 

13 those determinations that are estab14 lished by regulations issued by the 

15 Secretary; 

16 ‘‘(III) provide to a qualified les17 see and publish, with an opportunity 

18 for public comment for a period of 30 

19 days, any proposed determination 

20 under this subparagraph of the fair 

21 market value of an area that the 

22 qualified lessee seeks to lease under 

23 this paragraph; and 

24 ‘‘(IV) provide to the qualified les25 see and any adversely affected party 


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1 the opportunity to appeal the final de2 termination of fair market value in an 

3 administrative proceeding before the 

4 applicable Federal land management 

5 agency, in accordance with applicable 

6 law (including regulations). 

7 ‘‘(ii) LIMITATION ON NOMINATION.— 

8 After publication of a notice of request to 

9 lease land under this paragraph, the Sec10 retary may not accept under subsection (a) 

11 any nomination of the land for leasing un12 less the request has been denied or with13 drawn. 

14 ‘‘(iii) ANNUAL RENTAL.—For pur15 poses of section 5(a)(3), a lease awarded 

16 under this paragraph shall be considered a 

17 lease awarded in a competitive lease sale. 

18 ‘‘(D) REGULATIONS.—Not later than 270 

19 days after the date of enactment of this para20 graph, the Secretary shall issue regulations to 

21 carry out this paragraph.’’. 

Æ 


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