Geothermal Steam Act Amendments of 1988
PL 100-443 (S.1889), enacted 09/22/1988

102 STAT. 1766 
PUBLIC LAW 100-443—SEPT. 22, 1988 
Public Law 100-443 
100th Congress 
An Act 
Sept. 22, 1988 
[S. 1889] 
Geothermal 
Steam Act 
Amendments of 
1988. 
Energy. 
National parks, 
monuments, etc. 
30 u s e 1001 
note. 
To amend the Geothermal Steam Act of 1970 with respect to requirements relating to 
leases, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be known as the "Geothermal Steam Act Amend-
ments of 1988". 
SEC. 2. DEFINITIONS. 
(a) Section 2 of the Geothermal Steam Act of 1970 (30 U.S.C. 1001) 
is amended by adding the following at the end of the section: 
"(f) 'Significant thermal features within units of the National 
Park System' shall include, but not be limited to, the following: 
"(1) Thermal features within units of the National Park 
System listed in Section 28(a)(1) and designated as significant in 
the Federal Register notice of August 3, 1987 (Vol. 52, No. 148 
Fed. Reg. 28790). 
"(2) Crater Lake National Park. 
"(3) Thermal features within Big Bend National Park and 
Lake Mead National Recreation Area proposed as significant in 
the Federal Register notice of February 13, 1987 (Vol. 52, No. 30 
Fed. Reg. 4700). 
"(4) Thermal features within units of the National Park 
System added to the significant thermal features list pursuant 
to section 28(a)(2) of this Act. 
(b) Section 6(d) of the Geothermal Steam Act of 1970 (30 U.S.C. 
1005(d)) is amended to read as follows: 
"(d) Except as otherwise provided for in this section, for purposes 
of this section the term 'produced or utilized in commercial quan-
tities' means the completion of a well producing geothermal steam 
in commercial quantities. Such term shall also include the comple-
tion of a well capable of producing geothermal steam in commercial 
quantities so long as the Secretary determines that diligent efforts 
are being made toward the utilization of the geothermal steam.". 
SEC. 3. LEASE EXTENSIONS. 
Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C. 1005) is 
amended by adding the following new subsections: 
"(g)(1) Any geothermal lease issued pursuant to this Act for land 
on which, or for which under an approved cooperative or unit plan 
of development or operation, geothermal steam has not been pro-
duced or utilized in commercial quantities by the end of its primary 
term, or by the end of any extension provided by subsection (c), may 
be extended for successive 5-year periods, but totaling not more than 
10 years, if the Secretary determines that the lessee has met the 
bona fide effort requirement of subsection (h), and either of the 
following: 
PUBLIC LAW 100-443—SEPT. 22, 1988 
102 STAT. 1767 
"(A) the payment in lieu of commercial quantities production 
requirement of subsection (i). 
"(B) The significant expenditure requirement of subsection 0)-
"(2) A lease extended pursuant to paragraph (1) shall continue so 
long thereafter as geothermal steam is produced or utilized in 
commercial quantities, but such continuation shall not exceed an 
additional 25 years, for a total of 50 years, if such lease was also the 
subject of an extension under subsection (c) or an additional 30 
years, for a total of 50 years, if such lease is only extended 
pursuant to paragraph (1). 
"(3) If, at the end of either 50-year term referred to in paragraph 
(2), geothermal steam is being produced or utilized in commercial 
quantities and the lands are not needed for other purposes, the 
lessee shall have a preferential right to a renewal of such leeise for a 
second term in accordance with such terms and conditions as the 
Secretary deems appropriate. For purposes of this paragraph only, 
the term 'produced or utilized in commercial quantities' means a 
bona fide sale or the use of geothermal steam by the lessee to 
generate electricity in marketable quantities. 
"(h) To meet the bona fid^ effort requirement referred to in Reports. 
subsection (g)(1) the lessee must submit a report to the Secretary 
demonstrating bona fide efforts (as determined by the Secretary) to 
produce or utilize geothermal steam in commercial quantities for 
such lease, given the then current economic conditions. 
"(i)(l) To meet the payments in lieu of commercial quantities 
production requirement referred to in subsection (g)(1)(A) the lessee 
must agree to the modification of the terms and conditions of the 
lease to require annual payments to the Secretary in accordance 
with this subsection. 
"(2) Payments under this subsection shall commence with the first 
year of the extension. Payments shall be equal to the following: 
"(A) In each of the first through the fifth payment years, at 
least $3.00 per acre or fraction thereof, of lands under lease. 
"(B) In each pf the sixth through the tenth payment years, at 
least $6.00 per acre or fraction thereof, of lands under lease. 
"(3) Failure to make the payments required by this subsection 
shall subject the lease to cancellation. 
"(4) No payments made pursuant to this subsection shall be 
required after the earlier of the following: 
"(A) The date of termination of the lease. 
"(B) The date of relinquishment of the lease. 
"(C) The date geothermal steam is produced or utilized in 
commercial quantities from the lease. 
"(5) No payments made pursuant to this subsection shall be used 
to reduce rentals or future production royalties. 
"(j)(l) To meet the significant expenditure requirement referred to 
in subsection (g)(1)(B) the lessee must demonstrate to the Secretary 
on an annual basis during an extension that a significant expendi-
ture of funds is being made on the lease. 
"(2) The following expenditures made by the lessee shall qualify as 
meeting the requirement of this subsection: 
' (A) Expenditures to conduct actual drilling operations on the 
lease, such as for exploratory or development wells, or geo-
chemical or geophysical surveys for exploratory or development 
wells. 
"(B) Expenditures for road or generating facilities construc-
tion on the lease. 
102 STAT. 1768 
PUBLIC LAW 100-443—SEPT. 22, 1988 
Conservation. 
"(C) Architectural or engineering services procured for the 
design of generating facilities to be located on the lease. 
"(D) Environmental studies required by State or Federal law. 
"(3) Expenditures shall be equal to the following: 
"(A) In each of the first through the fifth years, at least $15.00 
per acre or fraction thereof, of lands under lease. 
"(B) In each of the sixth through the tenth years, at least 
$18.00 per acre or fraction thereof, of lands under lease. 
"(4) Failure to make the expenditures required by this subsection 
shall subject the lease to cancellation. 
"(5) No expenditures made pursuant to this subsection shall be 
required after the date geothermal steam is produced or utilized in 
commercial quantities from the lease. 
"(6) Expenditures made pursuant to this subsection shall be in 
lieu of any minimum per acre diligent exploration expenditure 
requirement in effect for the lease at the end of its primary term, or 
at the end of any extension provided by subsection (c), as the case 
may be.". 
SEC. 4. REVIEW OF COOPERATIVE OR UNIT PLAN OF DEVELOPMENT. 
Section 18 of the Geothermal Steam Act of 1970 as amended (30 
U.S.C. 1017) is amended by inserting the following new paragraph 
after the first full paragraph of that section: 
"No more than five years after approval of any cooperative or unit 
plan of development or operation, and at least every five years 
thereafter, the Secretary shall review each such plan and, after 
notice and opportunity for comment, eliminate from inclusion in 
such plan any lease or part of a lease not regarded as reasonably 
necessary to cooperative or unit operations under the plan. In the 
case of a cooperative or unit plan approved before the enactment of 
the Geothermal Steam Act Amendments of 1988, the Secretary shall 
complete such review and elimination within 5 years after the 
enactment of such Act. Such elimination shall be based on scientific 
evidence, and shall occur only when it is determined by the Sec-
retary to be for the purpose of conserving and properly managing 
the geothermal resource. Any lease or part of a lease so eliminated 
shall be eligible for an extension under subsection (c) or (g) of section 
6 if it separately meets the requirements for such an extension.". 
SEC. 5. CONFORMING AMENDMENTS. 
(a) Section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1019) is amended to read as follows: 
"SEC. 20. All moneys received from the sales, bonuses, royalties 
and rentals under the provisions of this Act, including the payments 
referred to in section 6(i), shall be disposed of in the same manner as 
such moneys received pursuant to section 35 of the Mineral Leasing 
Act or pursuant to section 6 of the Mineral Leasing Act for Acquired 
Lands, as the case may be.". 
(b) Section 35 of the Mineral Leasing Act (30 U.S.C. 191) is 
amended by striking "notwithstanding the provisions of section 20 
thereof,". 
(c) Section 43 of the Mineral Leasing Act (30 U.S.C. 226-3) is 
amended as follows: 
(1) In subsection (a) strike out "oil and gas", and after "this 
Act" insert "or under the Geothermal Steam Act of 1970". 
PUBLIC LAW 100-443—SEPT. 22, 1988 
102 STAT. 1769 
(2) In subsection (b) after "oil and gas" insert ", coal, oil Coal, 
shale, phosphate, potassium, sulphur, gilsonite or geothermal 
Petroleum and 
resources". 
Eroducte'" 
(d) The Geothermal Steam Act of 1970 (30 U.S.C. 1001-1025) is ^^°^'''^-
amended by adding the following new section: 
"SEC. 29. The Secretary shall not issue any lease under this Act on 30 USC 1027. 
those lands subject to the prohibition provided under section 43 of 
the Mineral Leasing Act.". 
SEC. 6. SIGNIFICANT THERMAL FEATURES. 
The Geothermal Steam Act of 1970, as amended (30 U.S.C. 1001-
1025) is amended by adding the following new section 28: 
"SEC. 28. (a)(1) The Secretary shall maintain a list of significant Records, 
thermal features, as defined in section 2(f), within units of the 30 USC 1026. 
National Park System, including but not limited to the following 
units: 
"(A) Mount Rainier National Park. 
"(B) Crater Lake National Park. 
"(C) Yellowstone National Park. 
"(D) John D. Rockefeller, Jr. Memorial Parkway. 
"(E) Bering Land Bridge National Preserve. 
"(F) Gates of the Arctic National Park and Preserve. 
"(G) Katmai National Park. 
"(H) Aniakchak National Monument and Preserve. 
"(I) Wrangell-St. Elias National Park and Preserve. 
"(J) Lake Clark National Park and Preserve. 
"(K) Hot Springs National Park. 
"(L) Big Bend National Park (including that portion of the Rio 
Grande National Wild Scenic River within the boundaries of 
Big Bend National Park). 
"(M) Lassen Volcanic National Park. 
"(N) Hawaii Volcanoes National Park. 
"(O) Haleakala National Park. 
"(P) Lake Mead National Recreation Area. 
"(2) The Secretary may, after notice and public comment, add 
significant thermal features within units of the National Park 
System to the significant thermal features list. 
"(3) The Secretary shall consider the following criteria in deter-
mining the significance of thermal features: 
"(A) Size, extent and uniqueness. 
"(B) Scientific and geologic significance. 
"(C) The extent to which such features remain in a natural, 
undisturbed condition. 
"(D) Significance of thermal features to the authorized pur-
poses for which the National Park System unit was established. 
"(b)(1) The Secretary shall maintain a monitoring program for 
significant thermal features within units of the National Park 
System. 
"(2) As part of the monitoring program required by paragraph (1), 
the Secretary shall establish a research program to collect and 
assess data on the geothermal resources within units of the National 
Park System with significant thermal features. Such program shall 
be carried out by the National Park Service in cooperation with the 
U.S. Geological Survey and shall begin with the collection and 
assessment of data for significant thermal features near current or 
proposed geothermal development and shall also include such fea-
tures near areas of potential geothermal development. 
102 STAT. 1770 
PUBLIC LAW 100-443—SEPT. 22, 1988 
Public 
information. 
Reports. 
Forests and 
forest products. 
Public lands. 
"(c)(1) Upon receipt of an application for a lease under this Act, 
the Secretary shall determine on the basis of scientific evidence if 
exploration, development or utilization of the lands subject to the 
lease application is reasonably likely to result in a significant 
adverse effect on a significant thermal feature within a unit of the 
National Park System. Such determination shall be subject to notice 
and public comment. 
"(2) If the Secretary determines that the exploration, development 
or utilization of the land subject to the lease application is reason-
ably likely to result in a significant adverse effect on a significant 
thermal feature within a unit of the National Park System, the 
Secretary shall not issue such lease. 
"(3) The Secretary shall not issue any lease under this Act for 
those lands, or portions thereof, which are the subject of a deter-
mination made pursuant to subparagraph (2). 
"(d) With respect to all leases or drilling permits issued, extended, 
renewed or modified under this Act, the Secretary shall include 
stipulations in such leases and permits necessary to protect signifi-
cant thermal features within units of the National Park System 
where the Secretary determines that, based on scientific evidence, 
the exploration, development or utilization of the land subject to the 
lease or drilling permit is reasonably likely to adversely affect any 
such significant thermal feature. Stipulations shall include, but not 
be limited to— 
"(1) requiring the lessee to reinject geothermal fluids into the 
rock formations from which they originate; 
"(2) requiring the lessee to report annually to the Secretary 
on activities taken on the lease; 
"(3) requiring the lessee to continuously monitor geothermal 
steam and associated geothermal resources production and 
injection wells; and 
"(4) requiring the lessee to suspend activity on the lease if the 
Secretary determines that ongoing exploration, development or 
utilization activities are having a significant adverse effect on a 
significant thermal feature within a unit of the National Park 
System until such time as the significant adverse effect is 
eliminated. The stipulation shall provide for the termination of 
the lease by the Secretary if the significant adverse effect 
cannot be eliminated within a reasonable period of time. 
"(e) The Secretary of Agriculture shall consider the effects on 
significant thermal features within units of the National Park 
System in determining whether to consent to leasing under this Act 
on national forest lands or other lands administered by the Depart-
ment of Agriculture available for leasing under this Act, including 
public, withdrawn, and acquired lands. 
"(f) Nothing in this Act shall affect the ban on leasing under this 
Act with respect to the Island Park Geothermal Area, as designated 
by the map in the 'Final Environmental Impact Statement of the 
Island Park Geothermal Area' (January 15, 1980, p. XI), and pro-
vided for in Public Law 98-473.". 
SEC. 
7
. 
CRATER 
LAKE 
NATIONAL 
PARK 
REPORT. 
On March 1, 1989, or 6 months after the date of enactment of this 
section (whichever is later), the Secretary shall submit to Congress a 
report on the presence or absence of significant thermal features 
within Crater Lake National Park. 
PUBLIC LAW 100-443—SEPT. 22, 1988 
102 STAT. 1771 
SEC. 8. CORWIN SPRINGS KGRA STUDY. 
30 USC 1026 
(a) The United States Geological Survey, in consultation with the 
National Park Service, shall conduct a study on the impact of 
present and potential geothermal development in the vicinity of 
Yellowstone National Park on the thermal features within the park. 
The area to be studied shall be the lands within the Corwin Springs 
Known Geothermal Resource Area as designated in the July 22, 
1975, Federal Register (Fed. Reg. Vol. 40, No. 141). The study shall 
be transmitted to Congress no later than December 1,1990. 
(b) Any production from existing geothermal wells or any develop-
ment of new geothermal wells or other facilities related to geo-
thermal production is prohibited in the Corwin Springs Known 
Geothermal Resource Area until 180 days after the receipt by 
Congress of the study provided for in subsection (a) of this section. 
(c) The Secretary may not issue, extend, renew or modify any 
geothermal lease or drilling permit pursuant to the Geothermal 
Steam Act of 1970 (30 U.S.C. 1001-1025) in the Corwin Springs 
Known Geothermal Resource Area until 180 days after the receipt 
by Congress of the study provided for in section 8(a) of this Act. This 
section shall not be construed as requiring such leasing activities 
subsequent to the 180 days after study submittal. 
(d) If the Secretary determines that geothermal drilling and re- Environmental 
lated activities within the area studied pursuant to subsection (a) of protection, 
this section may adversely affect the thermal features of Yellow-
stone National Park, the Secretary shall include in the study 
required under subsection (a) of this section recommendations 
regarding the acquisition of the geothermal rights necessary to 
protect such thermal resources and features. 
SEC. 9. CONSISTENCY PROVISION. 
30 USC 1005 
To the extent that any provision in this Act is inconsistent with 
the provisions of section 115(2) of title I of section 101(h) of Public 
Law 99-591 (100 Stat. 3341-264 through 100 Stat. 3341-266), this Act 
shall be deemed to supersede the provisions of such section. 
Approved September 22, 1988. 
LEGISLATIVE HISTORY—S. 1889 (H.R. 2794): 
HOUSE REPORTS: No. 100-664 accompanying H.R. 2794 (Comm. on Interior and 
Insular Affairs). 
SENATE REPORTS: No. 100-283 (Comm. on Energy and Natural Resources). 
CONGRESSIONAL RECORD, Vol. 134 (1988): 
Feb. 16, considered and passed Senate. 
June 13, H.R. 2794 considered and passed House; proceedings vacated and 
S. 1889, amended, passed in lieu. 
Aug. 9, Senate concurred in House amendments with an amendment. 
Sept. 9, House concurred in Senate amendment.