Sec. 1. Rentals—Rentals must be paid to the proper ofce of the lessor in advance of each lease year. Annual
rental rates per acre or fraction thereof, as applicable, are:
(a) Noncompetitive lease (includes post-sale parcels not receiving bids, a direct use lease or a lease issued to
a mining claimant): $1.00 for the rst 10 years; thereafter $5.00; or
(b) Competitive lease: $2.00 for the rst year; $3.00 for the second through tenth year; thereafter $5.00.
Annual rental is always due by the anniversary date of this lease (43 CFR 3211.13), regardless of whether the
lease is in a unit or outside of a unit, the lease is in production or not, or royalties or direct use fees apply to
Rental may only be credited toward royalty under 43 CFR 3211.15 and 30 CFR 218.303. Rental may not be
credited against direct use fees. Failure to pay annual rental timely will result in late fees and will make the
lease subject to termination in accordance with 43 CFR 3213.14.
Sec. 2. (a) Royalties—Royalties must be paid to the proper ofce of the lessor. Royalties are due on the last
day of the month following the month of production. Royalties will be computed in accordance with
applicable regulations and orders. Royalty rates for geothermal resources produced for the commercial
generation of electricity but not sold in an arm’s length transaction are: 1.75 percent for the rst 10 years of
production and 3.5 percent after the rst 10 years. The royalty rate is to be applied to the gross proceeds
derived from the sale of electricity in accordance with 30 CFR part 206 subpart H.
The royalty rate for byproducts derived from geothermal resource production that are minerals specied in
section 1 of the Mineral Leasing Act (MLA), as amended (30 U.S.C. 181), is 5 percent, except for sodium
compounds, produced between September 29, 2006 and September 29, 2011 (Pub. L. No. 109-338, §102;
note to 30 U.S.C. 362) for which the royalty rate is 2 percent. No royalty is due on byproducts that are not
specied in 30 U.S.C. § 181. (43 CFR 3211.19.)
If this lease or a portion thereof is committed to an approved communitization or unit agreement and the
agreement contains a provision for allocation of production, royalties must be paid on the production
allocated to this lease.
(b) Arm’s length transactions—The royalty rate for geothermal resources sold by you or your afliate at
arm’s length to a purchaser is 10 percent of the gross proceeds derived from the arm’s-length sale (43 CFR
(c) Advanced royalties—In the absence of a suspension, if you cease production for more than one calendar
month on a lease that is subject to royalties and that has achieved commercial production, your lease will
remain in effect only if you make advanced royalty payments in accordance with 43 CFR 3212.15(a) and 30
(d) Direct use fees—Direct use fees must be paid in lieu of royalties for geothermal resources that are utilized
for commercial, residential, agricultural, or other energy needs other than the commercial production or
generation of electricity, but not sold in an arm’s length transaction (43 CFR 3211.18; 30 CFR 206.356).
This requirement applies to any direct use of federal geothermal resources (unless the resource is exempted
as described in 30 CFR 202.351(b) or the lessee is covered by paragraph (e), below) and is not limited to
direct use leases. Direct use fees are due on the last day of the month following the month of production.
(e) If the lessee is a State, tribal, or local government covered by 43 CFR 3211.18(a)(3) and 30 CFR
206.366, check here: . A lessee under this paragraph is not subject to paragraph (d), above. In lieu of
royalties, the lessee under this paragraph must pay a nominal fee of
Sec. 3. Bonds—A bond must be led and maintained for lease operations as required by applicable
Sec. 4. Work requirements, rate of development, unitization, and drainage--Lessee must perform work
requirements in accordance with applicable regulations (43 CFR 3207.11, 3207.12), and must prevent
unnecessary damage to, loss of, or waste of leased resources. Lessor reserves the right to specify rates of
development and production and to require lessee to commit to a communitization or unit agreement, within
30 days of notice, if in the public interest. Lessee must drill and produce wells necessary to protect leased
lands from drainage or pay compensatory royalty for drainage in the amount determined by lessor. Lessor
will exempt lessee from work requirements only where the lease overlies a mining claim that has an
approved plan of operations and where BLM determines that the development of the geothermal resource on
the lease would interfere with the mining operation (43 CFR 3207.13).
Sec. 5. Documents, evidence, and inspection—Lessee must le with the proper ofce of the lessor, not later
than (30) days after the effective date thereof, any contract or evidence of other arrangement for the sale, use,
or disposal of geothermal resources, byproducts produced, or for the sale of electricity generated using
geothermal resources produced from the lease. At such times and in such form as lessor may prescribe, lessee
must furnish detailed statements and all documents showing (a) amounts and quality of all geothermal
resources produced and used (either for commercial production or generation of electricity, or in a direct use
operation) or sold; (b) proceeds derived therefrom or from the sale of electricity generated using such
resources; (c) amounts that are unavoidably lost or reinjected before use, used to generate plant parasitic
electricity (as dened in 30 CFR 206.351) or electricity for lease operations, or otherwise used for lease
operations related to the commercial production or generation of electricity; and (d) amounts and quality of
all byproducts produced and proceeds derived from the sale or disposition thereof. Lessee may be required to
provide plats and schematic diagrams showing development work and improvements, and reports with
respect to parties in interest.
In a format and manner approved by lessor, lessee must: keep a daily drilling record, a log, and complete
information on well surveys and tests; keep a record of subsurface investigations; and furnish copies to lessor
Lessee must keep open at all reasonable times for inspection by any authorized ofcer of lessor, the leased
premises and all wells, improvements, machinery, and xtures thereon, and all books, accounts, maps, and
records relative to operations, surveys, or investigations on or in the leased lands. Lessee must maintain copies of
all contracts, sales agreements, accounting records, billing records, invoices, gross proceeds and payment data
regarding the sale, disposition, or use of geothermal resources, byproducts produced, and the sale of electricity
generated using resources produced from the lease, and all other information relevant to determining royalties or
direct use fees. All such records must be maintained in lessee’s accounting ofces for future audit by lessor and
produced upon request by lessor or lessor’s authorized representative or agent. Lessee must maintain required
records for 6 years after they are generated or, if an audit or investigation is underway, until released of the
obligation to maintain such records by lessor.
Sec. 6. Conduct of operations—Lessee must conduct operations in a manner that minimizes adverse impacts to
the land, air, and water, to cultural, biological, visual, and other resources, and to other land uses or users. Lessee
must take reasonable measures deemed necessary by lessor to accomplish the intent of this section. To the extent
consistent with leased rights granted, such measures may include, but are not limited to, modication to siting or
design of facilities, timing of operations, and specication of interim and nal reclamation measures. Lessor
reserves the right to continue existing uses and to authorize future uses upon or in the leased lands, including the
approval of easements or rights-of-way. Such uses will be conditioned so as to prevent unnecessary or
unreasonable interference with rights of lessee. Prior to disturbing the surface of the leased lands, lessee must
contact lessor to be apprised of procedures to be followed and modications or reclamation measures that may be
necessary. Areas to be disturbed may require inventories or special studies to determine the extent of impacts to
other resources. Lessor may require lessee to complete minor inventories or short term special studies under
guidelines provided by lessor. If, in the conduct of operations, threatened or endangered species, objects of
historic or scientic interest, or substantial unanticipated environmental effects are observed, lessee must
immediately contact lessor. Lessee must cease any operations that are likely to affect or take such species, or
result in the modication, damage or destruction of such habitats or objects.
Sec. 7. Production of byproducts—If the production, use, or conversion of geothermal resources from these leased
lands is susceptible of producing a valuable byproduct or byproducts, including commercially demineralized
water for benecial uses in accordance with applicable State water laws, lessor may require substantial benecial
production or use thereof by lessee.
Sec. 8. Damages to property—Lessee must pay lessor for damage to lessor’s improvements, and must save and
hold lessor harmless from all claims for damage or harm to persons or property as a result of lease operations.
Sec. 9. Protection of diverse interests and equal opportunity—Lessee must maintain a safe working environment
in accordance with applicable regulations and standard industry practices, and take measures necessary to protect
public health and safety. Lessor reserves the right to ensure that production is sold at reasonable prices and to
prevent monopoly. Lessee must comply with Executive Order No. 11246 of September 24, 1965, as amended,
and regulations and relevant orders of the Secretary of Labor issued pursuant thereto. Neither lessee nor lessee’s
subcontractor may maintain segregated facilities.
Sec. 10. Transfer of lease interests and relinquishment of lease—As required by regulations, lessee must le with
lessor any assignment or other transfer of an interest in this lease. Subject to the requirements of 43 CFR subpart
3213, lessee may relinquish this lease or any legal subdivision by ling in the proper ofce a written
relinquishment, which will be effective as of the date BLM receives it, subject to the continued obligation of the
lessee and surety to be responsible for: paying all accrued rentals and royalties; plugging and abandoning all
wells on the relinquished land; restoring and reclaiming the surface and other resources; and complying with 43
Sec. 11. Delivery of premises—At such time as all or portions of this lease are returned to lessor, lessee must
place all wells in condition for suspension or abandonment, reclaim the land as specied by lessor, and within a
reasonable period of time, remove equipment and improvements not deemed necessary by lessor for preservation
of producible wells or continued protection of the environment.
Sec. 12. Proceedings in case of default—If lessee fails to comply with any provisions of this lease or other
applicable requirements under 43 CFR 3200.4, and the noncompliance continues for 30 days after written notice
thereof, this lease will be subject to termination in accordance with the Act and 43 CFR 3213. This
provision will not be construed to prevent the exercise by lessor of any other legal and equitable remedy or action,
including waiver of the default. Any such remedy, waiver, or action will not prevent later termination for the
same default occurring at any other time. Whenever the lessee fails to comply in a timely manner with any of the
provisions of the Act, this lease, the regulations, or other applicable requirements under 43 CFR 3200.4, and
immediate action is required, the lessor may enter on the leased lands and take measures deemed necessary to
correct the failure at the lessee’s expense.
Sec. 13. Heirs and successors-in-interest—Each obligation of this lease will extend to and be binding upon, and
every benet hereof will inure to, the heirs, executors, administrators, successors, or assigns of the respective
4. (a) The undersigned certies that:
(1) The offeror is a citizen of the United States; an association of such citizens; a municipality; or a corporation organized under the laws of the United States, any State or the District of Columbia; (2) All parties holding an
interest in the offer are in compliance with 43 CFR part 3200 and the authorizing Act; (3) The offeror’s chargeable interests, direct and indirect, do not exceed those allowed under the Act; and (4) The offeror is not considered
a minor under the laws of the State in which the lands covered by this offer are located.
(b) The undersigned agrees that signing this offer constitutes acceptance of this lease, including all terms, conditions and stipulations of which the offeror has been given notice. The offeror further agrees that this offer cannot be
withdrawn, either in whole or part, unless the withdrawal is received by the proper BLM State Ofce before this lease, an amendment to this lease, or a separate lease, whichever covers the land described in the withdrawal, has
been signed on behalf of the United States.
This offer will be rejected and will afford the offeror no priority if it is not properly completed and executed in accordance with the regulations or if it is not accompanied by the required payments. Title 18 U.S.C. § 1001 makes it a
crime for any person knowingly and willfully to make to any Department or agency of the United States any false, ctitious, or fraudulent statements or representations as to any matter within its jurisdiction.
Duly executed this
day of , 20 .
(Continued on page 3) (Form 3200-24a, page 2)
(Signature of Lessee or Attorney-in-fact)(Printed Name of Lessee or Attorney-in-fact)
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