---

|KENNY C. GUINN | STATE OF NEVADA | ALLEN BIAGGI
|-------------- | --------------- | ------------
|Governor       |                 | Director    

TRACY TAYLOR State Engineer

DEPARTMENT OF CONSERVATION AND NATURAL
RESOURCES

DIVISION OF WATER
RESOURCES901 S. Stewart Street, Suite
2002Carson City. Nevada
89701(775) 684-2800  Fax (775)
684-2811Http://water.nv.gov

R E : 7 2 9 7 8 ,  7 3 5 4 1
,         73 54 2 and 7354
3

September 8, 2005

|Nevada Geothermal Power Inc. | Nevada Land and Resource Company
      LLC
|---------------------------- | ------------------------------------------
|Ste#9000, 400 Granville St.  | 3480 GS Richards Blvd. Ste.
      101     
|Vancouver BC, Canada V6C 1T2 | Carson City, NV 89703                     

Dear Ladies and
Gentlemen:     Enclosed
herewith you will find Permit Nos. 72978, 73541, 73542 and 73543 for the waters
of an underground source.     You are advised that if the various proofs thereunder, together with any
map which may be required, are not filed in this office prior to the dates set
for such filings, the permit will be subject to cancellation. For your
assistance a sheet is enclosed which will advise you of the requirements to
fulfill the terms of your permits.     Please be advised that the Permittee is responsible for notifying the
State Engineer's Office of any address change. Furthermore, when multiple
addresses are used by the applicant or agent, the required legal notices will be
sent to the latest address of record, and not to earlier addresses unless proper
written notification from the applicant or agent directs
otherwise.     Also, please be
advised that if this water right is sold, it is in the best interest of the new
owner to file a report of conveyance notifying this office of the change in
ownership to avoid future cancellation of the right.

Sincerely,/s/ Tracy Taylor, P.EState
Engineer

TT/ltEnclosuresCc: John H. Milton IIIFrank MiseldineChris Mahannah

---

AMENDED APPLICATION

No. 72978

APPLICATION FOR PERMITTO APPROPRIATE THE PUBLICWATERS OF THE STATE OF NEVADA

|Date of filing in State
      Engineer's Office | JUL 01 2005
|----------------------------------------------- | -----------
|Returned to applicant for
      correction      | OCT 06 2005
|Corrected application
      filed               | DEC 05 2005
|Map filed                                       | DEC 05 2005
|                                                | ********** 

The applicantNevada Geothermal Power Inc. and Nevada Land and Resource
Company,LLC hereby make application for permission to
appropriate the public waters of the State of Nevada, as hereinafter stated.Nevada Geothermal Power Inc.isregistered in British Columbia, Canada; and Nevada Land
and Resource Company,LLC isa
Delaware limitedliability company.

**********

|1. | The source of the proposed appropriation isUnderground Well WW-1                                              
|-- | --------------------------------------------------------------------------------------------------------------
|   |                                                                                                               
|2. | The amount of water applied for is1600 GPM or 3.565 second feetsecond-feet                                    
|   |                                                                                                               
|   | (a)                                                                                                           
|   |                                                                                                               
|3. | The water to be used forIndustrial Use                                                                        
|   |                                                                                                               
|4. | If use is for:                                                                                                
|   |                                                                                                               
|   | (a)                                                                                                           
|   |                                                                                                               
|   | (b)                                                                                                           
|   |                                                                                                               
|   | (c)                                                                                                           
|   |                                                                                                               
|   | (d)                                                                                                           
|   |                                                                                                               
|   |                                                                                                               
|   |                                                                                                               
|   |                                                                                                               
|   |                                                                                                               
|5. | The water is to be diverted from its source at
      the following pointwithin the SE1⁄4 NW1⁄4 of Section
      1,

|T.36N., R.34E., M.D.B.&M. or ata point from which the NWcorner of said Section 1 bears N 58° 23' 26" E, 4554.0 feet
|-------------------------------------------------------------------------------------------------------------------
|                                                                                                                   

|6.  | Place of UseNE1⁄4 NW1⁄4 of Section
      23, T.36N., R.34E., M.D.B.&M.                                   
|--- | -----------------------------------------------------------------------------------------------------
|    |                                                                                                      
|7.  | Use will begin aboutJanuary
      1stand end aboutDecember 31stof each year.                         
|    |                                                                                                      
|8.  | Description of proposed worksDrilled well with pump and motor and pipeline to the place of
      use.
|    |                                                                                                      
|9.  | Estimated cost of worksTotal
      project - $75,000,000                                             
|    |                                                                                                      
|10. | Estimated time required to construct works 3 years                                                   
|    |                                                                                                      
|11. | Estimated time required to complete the application of
      water to beneficial use 5 years         

---

|72978 | Page 2 of 4
|----- | -----------

|12. | Remarks:See attached item 12
      remarks
|--- | ------------------------------------------

|John H. Milton III, Agent 
|--------------------------
|By**/s/John H Milton III**
|146 West Second Street    
|Winnemucca, NV 89445      

|Compared  | gkl/mt | lt/gkl
|--------- | ------ | ------
|Protested |        |       

**********

APPROVALOF STATE
ENGINEER

This is to certify that
I have examined the foregoing application, and do hereby grant the same, subject
to the following limitations and conditions: This permit is issued subject to
existing rights. It is understood that the amount of water herein granted is
only a temporary allowance and that the final water right obtained under this
permit will be dependent upon the amount of water actually placed to beneficial
use. It is also understood that this right must allow for a reasonable lowering
of the static water level. This well shall be equipped with a two (2) inch
opening for measuring depth to water. If the well is flowing, a valve must be
installed and maintained to prevent waste. A totalizing meter must be installed
and maintained in the discharge pipeline near the point of diversion and
accurate measurements must be kept of wirer placed to beneficial use.The
totalizing meter must be installed before any use of water begins, or before the
Proof of Completion of Work is filed. This source is located within an area
designated by the State Engineer, pursuant to NRS 534.030. The State retains the
right to regulate the use of the water herein granted at any and all
times.     This permit does not
extend the permitted the right of ingress and egress on public, private or
corporate lands.     The
issuance of this permit does not waive the requirements that the permit holder
obtain other permits from State, Federal and local agencies.This permit is issued under the provisions
of NRS 534.120(2) as a preferred
use.     This permit is issued
under the preferred use provisions of NRS Chapter 534. The manner of use of
water under this permit is by nature of its activity a temporary use and any
application to change the manner of use granted under this permit will be
subject to additional determination and evaluation with respect to the permanent
effects on existing rights and the resource within the ground water
basin.     The total combined
duty of water under Permits 72978,73541, 73542 and 73543 shall not exceed 2,186
acre-feet per year.     This
project is a renewable energy generation project as defined in NRS 701.080. An
annual report that documents the amount of water diverted and beneficially used
under. Permits 72978, 73541, 73542 and 73543 shall be filed not later than
January 31, of the year following the reporting year. A ground water monitoring
plan shall be submitted for approval by the State Engineer and shall be
implemented prior to development of water under these permits. The ground water
monitoring plan shall be sufficient to establish the magnitude and areal extent
of water level impacts that may result from pumpage under these permits. If
ground water monitoring data indicate an unreasonable effect upon prior water
rights to the extent those rights cannot be satisfied, diversion of water under
these permits may be curtailed or mitigation measures may be
required.(Continued on Page 3)

---

|Page 3 of 4 | 7 2 9 7 8
|----------- | ---------

(PERMIT TERMS CONTINUED)

The amount of water to be appropriated shall be
limited to the amount which can be applied to beneficial use, and not to exceed3.019cubic feet per
second,or2.186 acre-feet
annually.

Work must be prosecuted with reasonable diligence and
be completed on or before:September 8, 2008

Proof of completion of work shall be filed on or
before:October 8.
2008

Water must be placed to beneficial use on or
before:September 8.
2011

Proof of the application of water to beneficial use
shall be filed on or before:October 8, 2011

Map in support of proof of beneficial use shall be
filed on or before:N/A

| | IN TESTIMONY WHEREOF, I, TRACY TAYLOR,
      P.E.,
| | --------------------------------------------------
| | State Engineer of Nevada, have hereunto
      set 
| | my hand and the seal of my office,                
| | this8thday ofSeptember, A.D.2006                  
| | /s/ Tracy
      Taylor, P.E                       

|Completion of work filed      |    
|----------------------------- | ---
|Proof of beneficial use filed |    
|Cultural map filed            | n/a
|Certificated No               |    

---

72978P a g e 4 o f 4

Item 12 Remarks

Nevada Geothermal Power, Inc. and its affiliates
(NGP) are developing a 30-megawatt geothermal power plant located 24 miles west
of Winnemucca in Humboldt County, Nevada. The plant will be situated in the
Desert Valley water basin (Basin 31) on the western slope of Blue Mountain and
will be water-cooled to enhance its production capability during critical peak
periods of electrical consumption. To optimize generation, the facilities will
include a cooling tower that will require approximately 1,400-1600 GPM (see
attached Power Engineers letter) of make-up water (evaporation in the cooling
process) and blown-down water (replacement for saturation). The following
summarizes the process and benefits of the water that will be consumed in the
electrical generation process.

NGP has acquired several geothermal leases on private
and federal lands to provide the geothermal resource necessary to power the
plant. In each lease, NGP has reserved the rights to use the surface of the
leased lands as required for project development. The intended point of
diversion for plant cooling water is currently located on a private lease with
Nevada Land and Resource Company (NLRC), NLRC lease terms require NGP to file
jointly with them for water rights, but reserve to NGP the right to use the
water in its generation process.

While the location of the plant is relatively remote,
it is easily accessed via existing roads. The footprint of the plant is small
and additional impact to the area will be limited. The project will add 10 to 15
permanent full-time jobs to the local economy while increasing the county
propertytaxbase and providing
an additional opportunity for increased Net Proceeds Tax revenues to the state
and county.

The total required for the cooling tower may be
pumped from one well, or may be taken from two or more of the four wells
planned. The area has wells with varied productivity and so production may be
split between them or taken from one well.

---

No. 73541

APPLICATION FOR PERMITTO APPROPRIATE THE PUBLIC WATERS OF THE STATE OF NEVADA

|Date of filing in State Engineer's
      Office | DEC 05 2005            
|----------------------------------------------- | -----------------------
|Returned to applicant for
      correction      |                        
|Corrected application filed                     |                        
|Map filed                                       | DEC 05 2005 under 72978

**********

The applicantNevada Geothermal Power Inc. and Nevada Land and Resource
Company,LLC hereby make application for permission to
appropriate the public waters of the State of Nevada, as hereinafter statedNevada Geothermal Power Inc. is registered in British
Columbia, Canada; and Nevada Land and Resource Company, LLC is a Delaware
limited liability company.

**********

|I. The source of the proposed appropriation isUnderground Well WW-2         
|----------------------------------------------------------------------------
|                                                                            
|2. The amount of water applied for is1600 GPM or 3.565second feetsecond-feet
|                                                                            
|(a) If stored in reservoir give number of
      acre-feet                   
|                                                                            
|3. The water to be used forIndustrialUse                                    

|4. | If use is for:
|-- | --------------
|   |               
|   | (a)           
|   |               
|   | (b)           
|   |               
|   | (c)           
|   |               
|   | (d)           
|   |               
|   |               
|   |               
|   |               

|5.  | The water is to be diverted from
      its source at the following pointwithin
      the SE1⁄4 NW1⁄4 of Section 1, T.36N., R.34E.,
      M.D.B.&M. or at a point from which the NE
      corner of said Section 1 bears N 65°27'05" E., 3601.0 feet.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                 
|6.  | Place of UseNE1⁄4 NW1⁄4 of Section 23, T.36N., R.34E., M.D.B.&M.                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                 
|7.  | Use will begin about January 1st
      and end aboutDecember 31stof each year.                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                 
|8.  | Description of proposed worksDrilled well with pump and motor and
      pipeline to the place of use.                                                                                                                                           
|    |                                                                                                                                                                                                                                                 
|9.  | Estimated cost of works Total
      project -$75,000,000                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                 
|10. | Estimated time required to
      construct works3 years                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                 
|11. | Estimated time required to
      complete the application of water to beneficial use5 years                                                                                                                                                     

---

|73541 | Page 2 of 4
|----- | -----------

|12. | Remarks:See attached item 12
      remarks
|--- | ------------------------------------------

|John H. Milton III, Agent   
|----------------------------
|By/s/John H
      Milton III
|146 West Second Street      
|Winnemucca, NV 89445        

|Compared  | Hk/sam | lt/ gkl
|--------- | ------ | -------
|Protested |        |        

**********

APPROVALOF STATE
ENGINEER

This is to certify that
I have examined the foregoing application, and do hereby grant the same, subject
to the following limitations and conditions: This permit is issued subject to
existing rights. It is understood that the amount of water herein granted is
only a temporary allowance and that the final water right obtained under this
permit will be dependent upon the amount of water actually placed to beneficial
use. It is also understood that this right must allow for a reasonable lowering
of the static water level. This well shall be equipped with a two (2) inch
opening for measuring depth to water. If the well is flowing, a valve must be
installed and maintained to prevent waste. A totalizing meter must be installed
and maintained in the discharge pipeline near the point of diversion and
accurate measurements must be kept of wirer placed to beneficial use. The
totalizing meter must be installed before any use of water begins, or before the
Proof of Completion of Work is filed. This source is located within an area
designated by the State Engineer, pursuant to NRS 534.030. The State retains the
right to regulate the use of the water herein granted at any and all
times.     This permit does not
extend the permitted the right of ingress and egress on public, private or
corporate lands.     The
issuance of this permit does not waive the requirements that the permit holder
obtain other permits from State, Federal and local
agencies.     This permit is
issued under the provisions of NRS 534.120(2) as a preferred
use.     This permit is issued
under the preferred use provisions of NRS Chapter 534. The manner of use of
water under this permit is by nature of its activity a temporary use and any
application to change the manner of use granted under this permit will be
subject to additional determination and evaluation with respect to the permanent
effects on existing rights and the resource within the ground water
basin.     The total combined
duty of water under Permits 72978,73541, 73542 and 73543 shall not exceed 2,186
acre-feet per year.     This
project is a renewable energy generation project as defined in NRS 701.080. An
annual report that documents the amount of water diverted and beneficially used
under. Permits 72978, 73541, 73542 and 73543 shall be filed not later than
January 31, of the year following the reporting year. A ground water monitoring
plan shall be submitted for approval by the State Engineer and shall be
implemented prior to development of water under these permits. The ground water
monitoring plan shall be sufficient to establish the magnitude and areal extent
of water level impacts that may result from pumpage under these permits. If
ground water monitoring data indicate an unreasonable effect

---

upon prior water rights to the extent those rights cannot be satisfied, diversion of water under these permits may be curtailed or mitigation measures may be required.

(Continued on Page 3)

---

|Page 3 of 4 | 73541
|----------- | -----

(PERMIT TERMS CONTINUED)

The amount of water to be appropriated shall be
limited to the amount which can be applied to beneficial use, and not to
exceed3.019cubic feet per second,or2.186 acre-feet
annually.

Work must be prosecuted with reasonable diligence and
be completed on or before:September 8, 2008

Proof of completion of work shall be filed on or
before:October 8.
2008

Water must be placed to beneficial use on or
before:September 8.
2011

Proof of the application of water to beneficial use
shall be filed on or before:October 8, 2011

Map in support of proof of beneficial use shall be
filed on or before:

N/A

| | IN TESTIMONY WHEREOF, I, TRACY TAYLOR,     
| | -------------------------------------------
| | P.E.,                                      
| | State Engineer of Nevada, have hereunto set
| | my hand and the seal of my office,         
| | this8thday ofSeptember, A.D.2006           
| | /s/ Tracy Taylor, P.E                      

|Completion of work filed      |    
|----------------------------- | ---
|Proof of beneficial use filed |    
|Cultural map filed            | n/a
|Certificated No               |    

---

73541Page 4 of 4

Item 12 Remarks

Nevada Geothermal Power, Inc. and its affiliates
(NGP) are developing a 30-megawatt geothermal power plant located 24 miles west
of Winnemucca in Humboldt County, Nevada. The plant will be situated in the
Desert Valley water basin (Basin 31) on the western slope of Blue Mountain and
will be water-cooled to enhance its production capability during critical peak
periods of electrical consumption. To optimize generation, the facilities will
include a cooling tower that will require approximately 1,400-1600 GPM (see
attached Power Engineers letter) of make-up water (evaporation in the cooling
process) and blown-down water (replacement for saturation). The following
summarizes the process and benefits of the water that will be consumed in the
electrical generation process.

NGP has acquired several geothermal leases on private
and federal lands to provide the geothermal resource necessary to power the
plant. In each lease, NGP has reserved the rights to use the surface of the
leased lands as required for project development. The intended point of
diversion for plant cooling water is currently located on a private lease with
Nevada Land and Resource Company (NLRC). NLRC lease terms require NGP to file
jointly with them for water rights, but reserve to NGP the right tousethe water in its generation
process.

While the location of the plant is relatively remote,
it is easily accessed via existing roads. The footprint of the plant is small
and additional impact to the area will be limited. The project will add 10 to 15
permanent full-time jobs to the local economy while increasing the county
property tax base and providing an additional opportunity for increased Net
Proceeds Tax revenues to the state and county.

The total required for the cooling tower may be
pumped from one well, or may be taken from two or more of the four wells
planned. The area has wells with varied productivity and so production may be
split between them or taken from one well.

---

No. 73542

APPLICATION FOR PERMITTO APPROPRIATE THE PUBLIC WATERS OF THE STATE OF NEVADA

|Date of filing in State Engineer's
      Office | DEC 05 2005            
|----------------------------------------------- | -----------------------
|Returned to applicant for correction            |                        
|Corrected application filed                     |                        
|Map filed                                       | DEC 05 2005 under 72978

**********

The applicantNevada Geothermal Power Inc. and Nevada Land and Resource
Company, LLChereby make application for permission to
appropriate the public waters of the State of Nevada, as hereinafter stated.Nevada Geothermal Power Inc. is registered in British
Columbia, Canada; and Nevada Land and Resource Company, LLC is a Delaware
limited liability company.

**********

|1. | The source of the proposed appropriation isUnderground Well WW-3                                                                   
|-- | -----------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                    
|2. | The amount of water applied for is1600 GPM or 3.565second feetsecond-feet (a) If stored in reservoir give
      number of acre-feet
|   |                                                                                                                                    
|3. | The water to be used forIndustrial Use                                                                                             

|4. | If use is
      for:
|-- | --------------------
|   |                     
|   | (a)                 
|   |                     
|   | (b)                 
|   |                     
|   | (c)                 
|   |                     
|   | (d)                 
|   |                     
|   |                     
|   |                     
|   |                     

|5.  | The water is to be diverted from
      its source at the following pointwithin Lot 2
      of Section 1, T.36N., R.34E., M.D.B.&M., or
      at a point from which the NE corner of said Section 1 bears N 73°26'17 E, 2984.0 feet.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                     
|6.  | Place of UseNE1⁄4 NW1⁄4 of Section 23, T.36N., R.34E., M.D.B.&M.                                                                                                                                                                        
|    |                                                                                                                                                                                                                                     
|7.  | Use will being aboutJanuary 1stand end aboutDecember 31stof each year.                                                                                                                                                              
|    |                                                                                                                                                                                                                                     
|8.  | Description of proposed worksDrilled well with pump and motor and pipeline to
      the place of use.                                                                                                                               
|    |                                                                                                                                                                                                                                     
|9.  | Estimated cost of worksTotal project$75,000,000                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                     
|10. | Estimated time required to
      construct works3 years                                                                                                                                                                             
|    |                                                                                                                                                                                                                                     
|11. | Estimated time required to
      complete the application of water to beneficial use5 years                                                                                                                                         

---

|73542 | Page 2 of 4
|----- | -----------

|12. | Remarks:See attached item 12
      remarks
|--- | ------------------------------------------

|John H. Milton III, Agent   
|----------------------------
|By/s/John H
      Milton III
|146 West Second Street      
|Winnemucca, NV 89445        

|Compared  | Hk/sam | lt/ gkl
|--------- | ------ | -------
|Protested |        |        

*********

APPROVALOF STATE
ENGINEER

This is to certify that
I have examined the foregoing application, and do hereby grant the same, subject
to the following limitations and conditions: This permit is issued subject to
existing rights. It is understood that the amount of water herein granted is
only a temporary allowance and that the final water right obtained under this
permit will be dependent upon the amount of water actually placed to beneficial
use. It is also understood that this right must allow for a reasonable lowering
of the static water level. This well shall be equipped with a two (2) inch
opening for measuring depth to water. If the well is flowing, a valve must be
installed and maintained to prevent waste. A totalizing meter must be installed
and maintained in the discharge pipeline near the point of diversion and
accurate measurements must be kept of wirer placed to beneficial use. The
totalizing meter must be installed before any use of water begins, or before the
Proof of Completion of Work is filed. This source is located within an area
designated by the State Engineer, pursuant to NRS 534.030. The State retains the
right to regulate the use of the water herein granted at any and all
times.     This permit does not
extend the permitted the right of ingress and egress on public, private or
corporate lands.     The
issuance of this permit does not waive the requirements that the permit holder
obtain other permits from State, Federal and local agencies.This permit is issued under the provisions
of NRS 534.120(2) as a preferred
use.     This permit is issued
under the preferred use provisions of NRS Chapter 534. The manner of use of
water under this permit is by nature of its activity a temporary use and any
application to change the manner of use granted under this permit will be
subject to additional determination and evaluation with respect to the permanent
effects on existing rights and the resource within the ground water
basin.     The total combined
duty of water under Permits 72978,73541, 73542 and 73543 shall not exceed 2,186
acre-feet per year.     This
project is a renewable energy generation project as defined in NRS 701.080. An
annual report that documents the amount of water diverted and beneficially used
under. Permits 72978, 73541, 73542 and 73543 shall be filed not later than
January 31, of the year following the reporting year. A ground water monitoring
plan shall be submitted for approval by the State Engineer and shall be
implemented prior to development of water under these permits. The ground water
monitoring plan shall be sufficient to establish the magnitude and areal extent
of water level impacts that may result from pumpage under these permits. If
ground water monitoring data indicate an unreasonable effect upon prior water
rights to the extent those rights cannot be satisfied, diversion of water under
these permits may be curtailed or mitigation measures may be
required.(Continued on Page 3)

---

|Page 3 of 4 | 73542
|----------- | -----

(PERMIT TERMS CONTINUED)

The amount of water to be appropriated shall be
limited to the amount which can be applied to beneficial use, and not to
exceed3.019cubic feet per second,or2.186 acre-feet
annually.

Work must be prosecuted with reasonable diligence and
be completed on or before:September 8, 2008

Proof of completion of work shall be filed on or
before:October 8.
2008

Water must be placed to beneficial use on or
before:September 8.
2011

Proof of the application of water to beneficial use
shall be filed on or before:October 8, 2011

Map in support of proof of beneficial use shall be
filed on or before:

N/A

| | IN TESTIMONY WHEREOF, I, TRACY TAYLOR,     
| | -------------------------------------------
| | P.E.,                                      
| | State Engineer of Nevada, have hereunto set
| | my hand and the seal of my office,         
| | this8thday ofSeptember, A.D.2006           
| | /s/ Tracy Taylor, P.E                      

|Completion of work filed      |    
|----------------------------- | ---
|Proof of beneficial use filed |    
|Cultural map filed            | n/a
|Certificated No               |    

---

73542 Page 4 of 4

Item 12 Remarks

Nevada Geothermal Power, Inc. and its affiliates
(NGP) are developing a 30-megawatt geothermal power plant located 24 miles west
of Winnemucca in Humboldt County, Nevada. The plant will be situated in the
Desert Valley water basin (Basin 31) on the western slope of Blue Mountain and
will be water-cooled to enhance its production capability during criticalpeakperiods of electrical
consumption. To optimize generation, the facilities will include a cooling tower
that will require approximately 1,400-1600 GPM (see attached Power Engineers
letter) of make-up water (evaporation in the cooling process) and blown-down
water (replacement for saturation). The following summarizes the process and
benefits of the water that will be consumed in the electrical generation
process.

NGP has acquired several geothermal leases on private
and federal lands to provide the geothermal resource necessary to power the
plant. In each lease, NGP has reserved the rights to use the surface of the
leased lands as required for project development. The intended point of
diversion for plant cooling water is currently located on a private lease with
Nevada Land and Resource Company (NLRC). NLRC lease terms require NGP to file
jointly with them for water rights, but reserve to NGP the right to use the
water in its generation process.

While the location of the plant is relatively remote,
it is easily accessed via existing roads. The footprint of the plant is small
and additional impact to the area will be limited. The project will add 10 to 15
permanent full-time jobs to the local economy while increasing the county
property tax base and providing an additional opportunity for increased Net
Proceeds Tax revenues to the state and county.

The total required for the cooling tower may be
pumped from one well, or may be taken from two or more of the four wells
planned. The area has wells with varied productivity and so production may be
split between them or taken from one well.

---

NO. 73543

APPLICATION FOR PERMIT TO APPROPRIATE THE PUBLIC
WATERS OF THE STATE OF NEVADA

|Date of filing in State Engineer's
      Office | DEC 05 2005            
|----------------------------------------------- | -----------------------
|Returned to applicant for correction            |                        
|Corrected application filed                     |                        
|Map filed                                       | DEC 05 2005 under 72978

**********

|1. | The source of the proposed appropriation isUnderground Well WW-4                                                                   
|-- | -----------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                    
|2. | The amount of water applied for is1600 GPM or 3.565second feetsecond-feet (a) If stored in reservoir give
      number of acre-feet
|   |                                                                                                                                    
|3. | The water to be used forIndustrial Use                                                                                             

|4.                                                                                 | If use is for:
|---------------------------------------------------------------------------------- | --------------
|                                                                                   |               
|(a) irrigation, state number of acres to be
      irrigated                       
|                                                                                  
|(b) Stockwater, state number and kinds of animals to be
      watered             
|                                                                                  
|(c) Other use (describe fully under No. 12. "Remarks")See attached item 12 remarks
|                                                                                  
|(d) Power:                                                                        
|                                                                                  
|(I) Horsepower developed                                                          
|                                                                                  
|(2) Point of return of water to stream                                            

|5.  | The water is to be diverted from
      its source at the following pointwithin Lot 2
      of Section 1, T.36N., R.34E., M.D.B.&M., or
      at a point from which the NE corner of said Section 1 bears N 73°26'17 E, 2984.0 feet.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                     
|6.  | Place of UseNE1⁄4 NW1⁄4 of Section 23, T.36N., R.34E., M.D.B.&M.                                                                                                                                                                        
|    |                                                                                                                                                                                                                                     
|7.  | Use will being aboutJanuary 1stand end aboutDecember 31stof each year.                                                                                                                                                              
|    |                                                                                                                                                                                                                                     
|8.  | Description of proposed worksDrilled well with pump and motor and pipeline to
      the place of use.                                                                                                                               
|    |                                                                                                                                                                                                                                     
|9.  | Estimated cost of worksTotal project -$75,000,000                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                     
|10. | Estimated time required to
      construct works3 years                                                                                                                                                                             
|    |                                                                                                                                                                                                                                     
|11. | Estimated time required to
      complete the application of water to beneficial use5 years                                                                                                                                         
|    |                                                                                                                                                                                                                                     
|12. | Remarks:See attached item 12 remarks                                                                                                                                                                                                

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|73543 | Page 2 of 4
|----- | -----------

|John H. Milton III, Agent   
|----------------------------
|By/s/John H
      Milton III
|146 West Second Street      
|Winnemucca, NV 89445        

|Compared  | Sc/gkl | lt/ gkl
|--------- | ------ | -------
|Protested |        |        

**********

APPROVALOF STATE
ENGINEER

This is to certify that
I have examined the foregoing application, and do hereby grant the same, subject
to the following limitations and conditions: This permit is issued subject to
existing rights. It is understood that the amount of water herein granted is
only a temporary allowance and that the final water right obtained under this
permit will be dependent upon the amount of water actually placed to beneficial
use. It is also understood that this right must allow for a reasonable lowering
of the static water level. This well shall be equipped with a two (2) inch
opening for measuring depth to water. If the well is flowing, a valve must be
installed and maintained to prevent waste. A totalizing meter must be installed
and maintained in the discharge pipeline near the point of diversion and
accurate measurements must be kept of wirer placed to beneficial use. The
totalizing meter must be installed before any use of water begins, or before the
Proof of Completion of Work is filed. This source is located within an area
designated by the State Engineer, pursuant to NRS 534.030. The State retains the
right to regulate the use of the water herein granted at any and all
times.     This permit does not
extend the permitted the right of ingress and egress on public, private or
corporate lands.     The
issuance of this permit does not waive the requirements that the permit holder
obtain other permits from State, Federal and local
agencies.     This permit is
issued under the provisions of NRS 534.120(2) as a preferred use. This permit is
issued under the preferred use provisions of NRS Chapter 534. The manner of use
of water under this permit is by nature of its activity a temporary use and any
application to change the manner of use granted under this permit will be
subject to additional determination and evaluation with respect to the permanent
effects on existing rights and the resource within the ground water
basin.     The total combined
duty of water under Permits 72978,73541, 73542 and 73543 shall not exceed 2,186
acre-feet per year.     This
project is a renewable energy generation project as defined in NRS 701.080. An
annual report that documents the amount of water diverted and beneficially used
under. Permits 72978, 73541, 73542 and 73543 shall be filed not later than
January 31, of the year following the reporting year. A ground water monitoring
plan shall be submitted for approval by the State Engineer and shall be
implemented prior to development of water under these permits. The ground water
monitoring plan shall be sufficient to establish the magnitude and areal extent
of water level impacts that may result from pumpage under these permits. If
ground water monitoring data indicate an unreasonable effect upon prior water
rights to the extent those rights cannot be satisfied, diversion of water under
these permits may be curtailed or mitigation measures may be
required.(Continued on Page 3))

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|Page 3 of 4 | 73543
|----------- | -----

(PERMIT TERMS CONTINUED)

The amount of water to be appropriated shall be
limited to the amount which can be applied to beneficial use, and not to
exceed3.019cubic feet
per second,or2.186 acre-feet annually.

Work must be prosecuted with reasonable diligence and
be completed on or before:September 8, 2008

Proof of completion of work shall be filed on or
before:October 8.
2008

Water must be placed to beneficial use on or
before:September 8.
2011

Proof of the application of water to beneficial use
shall be filed on or before:October 8, 2011

Map in support of proof of beneficial use shall be
filed on or before:

N/A

| | IN TESTIMONY WHEREOF, I, TRACY TAYLOR, P.E.,
| | --------------------------------------------
| | State Engineer of Nevada, have hereunto set 
| | my hand and the seal of my office,          
| | this8thday ofSeptember, A.D.2006            

|Completion of work filed      |    
|----------------------------- | ---
|Proof of beneficial use filed |    
|Cultural map filed            | n/a
|Certificated No               |    

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73543 Page 4 of
4

Item 12 Remarks

Nevada Geothermal Power, Inc. and its affiliates
(NGP) are developing a 30-megawatt geothermal power plant located 24 miles west
of Winnemucca in Humboldt County, Nevada. The plant will be situated in the
Desert Valley water basin (Basin 31) on the western slope of Blue Mountain and
will be water-cooled to enhance its production capability during critical peak
periods of electrical consumption. To optimize generation, the facilities will
include a cooling tower that will require approximately 1,400-1600 GPM (see
attached Power Engineers letter) of makeup water (evaporation in the cooling
process) and blown-down water (replacement for saturation). The following
summarizes the process and benefits of the water that will be consumed in the
electrical generation process.

NGP has acquired several geothermal leases on private
and federal lands to provide the geothermal resource necessary to power the
plant. In each lease, NGP has reserved the rights to use the surface of the
leased landsasrequired for
project development. The intended point of diversion for plant cooling water is
currently located on a private lease with Nevada Land and Resource Company
(NLRC). NLRC lease terms require NGP to file jointly with them for water rights,
but reserve to NGP the right to use the water in its generation
process.

While the location of the plant is relatively remote,
it is easily accessed via existing roads. The footprint of the plant is small
and additional impact to the area will be limited. The project will add 10 to 15
permanent full-time jobs to the local economy while increasing the county
property tax base and providing an additional opportunity for increased Net
Proceeds Tax revenues to the state and county.

The total required for the cooling tower may be
pumped from one well, or may be taken from two or more of the four wells
planned. The area has wells with varied productivity and so production may be
split between them or taken from one well.

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