IB 

Union Calendar No. 375 

115TH CONGRESS 

2D SESSION H. R. 4568 

[Report No. 115–502] 

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 

JANUARY 9, 2018 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on December 6, 2017] 


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A BILL 

To amend the Geothermal Steam Act of 1970 to promote 

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


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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: 

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

10 ‘‘(a) DEFINITION OF GEOTHERMAL EXPLORATION

11 TEST PROJECT.—In this section, the term ‘geothermal ex12 ploration test project’ means the drilling of a well to test 

13 or explore for geothermal resources on lands for which the 

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

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

16 ‘‘(2) causes— 

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

18 disruption at the location of each geothermal ex19 ploration well; and 

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

21 of soil or vegetation disruption during access or 

22 egress to the test site; 

23 ‘‘(3) is developed— 

24 ‘‘(A) less than 9 inches in diameter; 


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1 ‘‘(B) in a manner that does not require off2 road motorized access other than to and from the 

3 well site along an identified off-road route; 

4 ‘‘(C) without construction of new roads 

5 other than upgrading of existing drainage cross6 ings for safety purposes; 

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

8 drilling equipment vehicles; and 

9 ‘‘(E) without the use of high-pressure well 

10 stimulation; 

11 ‘‘(4) is completed in less than 90 days, including 

12 the removal of any surface infrastructure from the 

13 site; and 

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

15 within 3 years of the date of first exploration drilling 

16 to approximately the condition that existed at the 

17 time the project began, unless the site is subsequently 

18 used as part of energy development under the lease. 

19 ‘‘(b) CATEGORICAL EXCLUSION.— 

20 ‘‘(1) IN GENERAL.—Unless extraordinary cir21 cumstances exist, a project that the Secretary deter22 mines under subsection (c) is a geothermal explo23 ration test project shall be categorically excluded from 

24 the requirements for an environmental assessment or 

25 an environmental impact statement under the NaVerDate Sep 11 2014 00:02 Jan 10, 2018 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H4568.RH H4568

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1 tional Environmental Policy Act of 1969 (42 U.S.C. 

2 4321 et seq.) or section 1508.4 of title 40, Code of 

3 Federal Regulations (or a successor regulation). 

4 ‘‘(2) EXTRAORDINARY CIRCUMSTANCES DEFINI5 TION.—In this subsection, the term ‘extraordinary 

6 circumstances’ has the same meaning given such term 

7 in the Department of the Interior Departmental Man8 ual, 516 DM 2.3A(3) and 516 DM 2, Appendix 2 (or 

9 successor provisions). 

10 ‘‘(c) PROCESS.— 

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

12 leaseholder shall provide notice to the Secretary of the 

13 leaseholder’s intent to carry out a geothermal explo14 ration test project at least 30 days before the start of 

15 drilling under the project. 

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

17 than 10 days after receipt of a notice of intent under 

18 paragraph (1), the Secretary shall, with respect to the 

19 project described in the notice of intent— 

20 ‘‘(A) determine if the project qualifies for a 

21 categorical exclusion under subsection (b); and 

22 ‘‘(B) notify the leaseholder of such deter23 mination. 

24 ‘‘(3) OPPORTUNITY TO REMEDY.—If the Sec25 retary determines under paragraph (2)(A) that the 


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1 project does not qualify for a categorical exclusion 

2 under subsection (b), the Secretary shall— 

3 ‘‘(A) include in such notice clear and de4 tailed findings on any deficiencies in the project 

5 that resulted in such determination; and 

6 ‘‘(B) allow the leaseholder to remedy any 

7 such deficiencies and resubmit the notice of in8 tent under paragraph (1).’’. 

9 SEC. 3. GEOTHERMAL LEASING PRIORITY AREAS. 

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

11 et seq.) is further amended by adding at the end the fol12 lowing: 

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

14 ‘‘(a) DEFINITION OF COVERED LAND.—In this section, 

15 the term ‘covered land’ means land that is— 

16 ‘‘(1) Federal land; and 

17 ‘‘(2) not excluded from the development of geo18 thermal energy under— 

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

20 Federal Land Policy and Management Act of 

21 1976 (43 U.S.C. 1701 et seq.); or 

22 ‘‘(B) any other Federal law. 

23 ‘‘(b) DESIGNATION OF GEOTHERMAL LEASING PRI24 ORITY AREAS.—The Secretary, in consultation with the 

25 Secretary of Energy, shall designate portions of covered 


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1 land as geothermal leasing priority areas as soon as prac2 ticable, but not later than 5 years, after the date of the en3 actment of this section. 

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

5 which covered lands to designate as geothermal leasing pri6 ority areas under subsection (b), the Secretary, in consulta7 tion with the Secretary of Energy, shall consider if— 

8 ‘‘(1) the covered land is preferable for geothermal 

9 leasing; 

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

11 land is economically viable, including if such land 

12 has access to methods of energy transmission; and 

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

14 with section 202 of the Federal Land Policy and 

15 Management Act of 1976 (43 U.S.C. 1712), including 

16 subsection (c)(9) of that section. 

17 ‘‘(d) REVIEW AND MODIFICATION.—Not less frequently 

18 than once every 10 years, the Secretary shall— 

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

20 make additional designations of geothermal leasing 

21 priority areas; and 

22 ‘‘(2) review each area designated as a geothermal 

23 leasing priority area under this section, and, if ap24 propriate, remove such designation. 


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1 ‘‘(e) PROGRAMMATIC ENVIRONMENTAL IMPACT STATE2 MENT.— 

3 ‘‘(1) INITIAL DESIGNATIONS.—No later than one 

4 year after the initial designation of a geothermal leas5 ing priority area, the Secretary shall prepare a sup6 plement to any final programmatic environmental 

7 impact statement for geothermal leasing that is the 

8 most recently finalized such statement with respect to 

9 covered land designated as a geothermal leasing pri10 ority area under subsection (b). 

11 ‘‘(2) SUBSEQUENT DESIGNATIONS.—Each des12 ignation of a geothermal leasing priority area under 

13 subsection (d) shall be included in a programmatic 

14 environmental impact statement for geothermal leas15 ing or in a supplement to such a statement. 

16 ‘‘(3) CONSULTATIONS.—In developing any pro17 grammatic environmental impact statement for geo18 thermal leasing or supplement to such a statement 

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

20 ongoing basis, with appropriate State, Tribal, and 

21 local governments, transmission infrastructure owners 

22 and operators, developers, and other appropriate enti23 ties. 

24 ‘‘(4) PROCEDURE.—The Secretary may not delay 

25 issuing a permit or holding a lease sale under this 


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1 Act because the supplement required under paragraph 

2 (1) has not been finalized by the Secretary. 

3 ‘‘(f) COMPLIANCE WITH NEPA.—If the Secretary de4 termines that the designation of a geothermal leasing pri5 ority area has been sufficiently analyzed by a pro6 grammatic environmental impact statement, the Secretary 

7 shall not prepare any additional analysis under the Na8 tional Environmental Policy Act of 1969 (42 U.S.C. 4321 

9 et seq.) with respect to geothermal lease sales for such geo10 thermal leasing priority area.’’. 

11 SEC. 4. FACILITATION OF COPRODUCTION OF GEO12 THERMAL ENERGY ON OIL AND GAS LEASES. 

13 Section 4(b) of the Geothermal Steam Act of 1970 (30 

14 U.S.C. 1003(b)) is amended by adding at the end the fol15 lowing: 

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

17 Land under an oil and gas lease issued pursuant to 

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

19 Mineral Leasing Act for Acquired Lands (30 U.S.C. 

20 351 et seq.) that is subject to an approved application 

21 for permit to drill and from which oil and gas pro22 duction is occurring may be available for noncompeti23 tive leasing under subsection (c) by the holder of the 

24 oil and gas lease— 


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1 ‘‘(A) on a determination that geothermal 

2 energy will be produced from a well producing 

3 or capable of producing oil and gas; and 

4 ‘‘(B) in order to provide for the coproduc5 tion of geothermal energy with oil and gas.’’. 

6 SEC. 5. NONCOMPETITIVE LEASING OF ADJOINING AREAS 

7 FOR DEVELOPMENT OF GEOTHERMAL RE8 SOURCES. 

9 Section 4(b) of the Geothermal Steam Act of 1970 (30 

10 U.S.C. 1003(b)) is further amended by adding at the end 

11 the following: 

12 ‘‘(5) ADJOINING LAND.— 

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

14 ‘‘(i) FAIR MARKET VALUE PER ACRE.— 

15 The term ‘fair market value per acre’ means 

16 a dollar amount per acre that— 

17 ‘‘(I) except as provided in this 

18 clause, shall be equal to the market 

19 value per acre (taking into account the 

20 determination under subparagraph 

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

22 the adjoining land) as determined by 

23 the Secretary under regulations issued 

24 under this paragraph; 


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1 ‘‘(II) shall be determined by the 

2 Secretary with respect to a lease under 

3 this paragraph, by not later than the 

4 end of the 180-day period beginning on 

5 the date the Secretary receives an ap6 plication for the lease; and 

7 ‘‘(III) shall be not less than the 

8 greater of— 

9 ‘‘(aa) 4 times the median 

10 amount paid per acre for all land 

11 leased under this Act during the 

12 preceding year; or 

13 ‘‘(bb) $50. 

14 ‘‘(ii) INDUSTRY STANDARDS.—The 

15 term ‘industry standards’ means the stand16 ards by which a qualified geothermal profes17 sional assesses whether downhole or flowing 

18 temperature measurements with indications 

19 of permeability are sufficient to produce en20 ergy from geothermal resources, as deter21 mined through flow or injection testing or 

22 measurement of lost circulation while drill23 ing. 

24 ‘‘(iii) QUALIFIED FEDERAL LAND.— 

25 The term ‘qualified Federal land’ means 


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1 land that is otherwise available for leasing 

2 under this Act. 

3 ‘‘(iv) QUALIFIED GEOTHERMAL PRO4 FESSIONAL.—The term ‘qualified geo5 thermal professional’ means an individual 

6 who is an engineer or geoscientist in good 

7 professional standing with at least 5 years 

8 of experience in geothermal exploration, de9 velopment, or project assessment. 

10 ‘‘(v) QUALIFIED LESSEE.—The term 

11 ‘qualified lessee’ means a person who may 

12 hold a geothermal lease under this Act (in13 cluding applicable regulations). 

14 ‘‘(vi) VALID DISCOVERY.—The term 

15 ‘valid discovery’ means a discovery of a geo16 thermal resource by a new or existing slim 

17 hole or production well, that exhibits 

18 downhole or flowing temperature measure19 ments with indications of permeability that 

20 are sufficient to meet industry standards. 

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

22 Federal land that adjoins other land for which a 

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1 competitive lease under this section to the quali2 fied lessee at the fair market value per acre, if— 

3 ‘‘(i) the area of qualified Federal 

4 land— 

5 ‘‘(I) consists of not less than 1 

6 acre and not more than 640 acres; and 

7 ‘‘(II) is not already leased under 

8 this Act or nominated to be leased 

9 under subsection (a); 

10 ‘‘(ii) the qualified lessee has not pre11 viously received a noncompetitive lease 

12 under this paragraph in connection with 

13 the valid discovery for which data has been 

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

15 ‘‘(iii) sufficient geological and other 

16 technical data prepared by a qualified geo17 thermal professional has been submitted by 

18 the qualified lessee to the applicable Federal 

19 land management agency that would lead 

20 individuals who are experienced in the sub21 ject matter to believe that— 

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

23 geothermal resources on the land for 

24 which the qualified lessee holds the 


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1 legal right to develop geothermal re2 sources; and 

3 ‘‘(II) that geothermal feature ex4 tends into the adjoining areas. 

5 ‘‘(C) DETERMINATION OF FAIR MARKET

6 VALUE.— 

7 ‘‘(i) IN GENERAL.—The Secretary 

8 shall— 

9 ‘‘(I) publish a notice of any re10 quest to lease land under this para11 graph; 

12 ‘‘(II) determine fair market value 

13 for purposes of this paragraph in ac14 cordance with procedures for making 

15 those determinations that are estab16 lished by regulations issued by the Sec17 retary; 

18 ‘‘(III) provide to a qualified lessee 

19 and publish, with an opportunity for 

20 public comment for a period of 30 

21 days, any proposed determination 

22 under this subparagraph of the fair 

23 market value of an area that the quali24 fied lessee seeks to lease under this 

25 paragraph; and 


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1 ‘‘(IV) provide to the qualified les2 see and any adversely affected party 

3 the opportunity to appeal the final de4 termination of fair market value in an 

5 administrative proceeding before the 

6 applicable Federal land management 

7 agency, in accordance with applicable 

8 law (including regulations). 

9 ‘‘(ii) LIMITATION ON NOMINATION.— 

10 After publication of a notice of request to 

11 lease land under this paragraph, the Sec12 retary may not accept under subsection (a) 

13 any nomination of the land for leasing un14 less the request has been denied or with15 drawn. 

16 ‘‘(iii) ANNUAL RENTAL.—For purposes 

17 of section 5(a)(3), a lease awarded under 

18 this paragraph shall be considered a lease 

19 awarded in a competitive lease sale. 

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

21 days after the date of enactment of this para22 graph, the Secretary shall issue regulations to 

23 carry out this paragraph.’’. 


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Union Calendar No. 375 

115TH CONGRESS 

2D SESSION H. R. 4568 

[Report No. 115–502] 

A BILL 

To amend the Geothermal Steam Act of 1970 to 

purposes. sources under geothermal leases, and for other promote timely exploration for geothermal reJANUARY 9, 2018 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


lotter on DSKBCFDHB2PROD with BILLS