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**Exhibit 4.96**



|                           |                  | 5221 CENTRAL AVENUE, SUITE 201 
|-------------------------- | ---------------- | -------------------------------
|                           |                  | RICHMOND, CALIFORNIA 94804-5829
|                           | GeothermEx, Inc. |                                
|                           |                  |                                
|                           |                  |                                
|TELEPHONE: (510) 527-9875  |                  |                                
|FAX: (510) 527-8169        |                  |                                
|E-MAIL: mw@geotherrnex.com |                  |                                

PROPOSAL

|To:      | Ms. Kim Niggemann                                                                                             | Date:August 8, 2007
|-------- | ------------------------------------------------------------------------------------------------------------- | -------------------
|         | Nevada Geothermal Power, Inc.                                                                                 |                    
|         | sent viae-mail:
      kim@nevadageothermal.com                                                                |                    
|         |                                                                                                               |                    
|From:    | Subir K. Sanyal                                                                                               |                    
|         |                                                                                                               |                    
|Subject: | Assistance in Reservoir Engineering
      and Well Testing Operations at the Blue Mountain Geothermal Project

Introduction

GeothermEx is pleased to present this proposal to assist Nevada
Geothermal Power, Inc. during its current phase of drilling and testing
geothermal production and injection wells for the development of the Blue
Mountain geothermal project.

The services will be provided by GeothermEx from our offices in
Richmond, as well as at the project site, as required by Nevada Geothermal.

Scope of Work

The scope of work will consist of the following tasks:

Task 1: Review well information and provide well-test
engineering services for project development

GeothermEx will assist Nevada Geothermal Power as needed to
design and conduct well tests and gather the appropriate well and reservoir data
for reservoir engineering interpretation. Activities within this task will
consist of:

| | -detailed review of available well data. Provide comments,
      and, if needed, propose modifications to existing testing plans for both
      production and injection wells;         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                         
| | -provide specifications for the procurement of
      instrumentation needed to obtain adequate data during production,
      injection and interference testing operations;             
| |                                                                                                                                                                                         
| | -maintain communication (either via e-mail or by telephone)
      with field personnel to discuss any required changes or modifications to
      the testing plans;                     
| |                                                                                                                                                                                         
| | -make periodic visits to the field during the most critical
      stages of the well testing operations, to verify compliance with testing
      procedures and collection of test data.

1

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|                          | 5221 CENTRAL AVENUE, 
|------------------------- | ---------------------
|GeothermEx, Inc.          | SUITE 201 RICHMOND,  
|                          | CALIFORNIA 94804-5829
|TELEPHONE: (510)          |                      
|527-9876 FAX: (510)       |                      
|527-8164                  |                      
|E-MAIL: mw@geothermex.com |                      

Task 2: Provide reservoir engineering services for
project development

GeothermEx will assist Nevada Geothermal Power as needed in all
aspects of reservoir data analysis, well evaluation and reservoir assessment,
based on data gathered from the testing and logging of production and injection
wells. This may include, but will not necessarily be limited to:

| | -review of previously existing well data and evaluations
      conducted by other parties;                           
| | ---------------------------------------------------------------------------------------------------------------------
| | -proposing modifications to reservoir interpretation
      techniques to better accommodate the needs of the project;
| | -interpretation of downhole logging results;                                                                         
| | -interpretation of well test results and assessment of
      production and injection capacities;                    
| | -evaluation of pumped production rates;                                                                              
| | -interpretation of reservoir properties from testing
      results; and                                              
| | -processing and integration of data for eventual modeling
      of the reservoir by numerical methods.               

Budget

Work performed will be charged at the labor rates indicated in
the table below. Office expenses (communication, reproduction, report
preparation, etc.) will be billed at a flat rate of 10% of labor costs. Expenses
for travel and subsistence in the course of field activities will be billed as
actually incurred, without mark-up.

|Person /Position                                           | $/Day       
|---------------------------------------------------------- | ------------
|                                                           | $1,100.00   
|James W. Lovekin / Field Operations
      Manager          | $720.00     
|Data processing specialist                                 |             
|                                                           |             
|Expenses                                                   |             
|Office expenses (communication,
      reproduction, report |             
|preparation, etc.:                                         | 10% of Labor
|Travel expenses and subsistence during
      site work:    | At cost     

Other Conditions

The Scope of Work of this contract can be changed at any time
by mutual agreement between Nevada Geothermal Power and GeotherrnEx. If
additional work is requested, personnel time will be billed at the rates quoted
above, which will remain valid until December 30th, 2007.

2

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|                          |                  | 5221 CENTRAL AVENUE, SUITE 201 
|------------------------- | ---------------- | -------------------------------
|                          | GeothermEx, Inc. | RICHMOND, CALIFORNIA 94804-5829
|                          |                  |                                
|TELEPHONE: (510) 527-9876 |                  |                                
|FAX: (510) 527- 8164      |                  |                                
|E-MAIL: mw@geothermex.com |                  |                                

Invoices for work performed will be
submitted periodically by GeothermEx, but no more frequently than monthly.
Payment terms are net 30 days from the date of each invoice

All information received from Nevada Geothermal Power regarding
the Blue Mountain geothermal project will be kept strictly confidential and will
not be released to a third party without the consent of Nevada Geothermal.

Thank you for the opportunity to assist Nevada Geothermal Power
with the Blue Mountain project. Please indicate your acceptance of this proposal
by signing below and returning a signed copy of this proposal to GeothermEx.

|Blue Mountain
      Geothermal Project  Assistance in Testing
|--------------------------------------------------------------
|and Reservoir Engineering                                     
|Work
      Agreement and Authorization                        

|For Nevada Geothermal Power, Inc.   |  | For GeothermEx, Inc.
|----------------------------------- |  | --------------------
|                                    |  |                     
|                                    |  |                     
|/s/ Andrew Studley                  |  | /s/ Subir K. Sanyal 
|[Signature]                         |  | Subir K. Sanyal     
|                                    |  |                     
|Andrew
      Studley                |  | August
      8 2007 
|                                    |  | Date                
|[Printed Name of Authorized Person] |  |                     
|                                    |  |                     
|CFO                                 |  |                     
|[Position]                          |  |                     
|                                    |  |                     
|August 13, 2007                     |  |                     
|                                    |  |                     
|Date                                |  |                     
|                                    |  |                     
|P.O. Number (If Applicable)         |  |                     

3

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