[§182-18]  Geothermal royalties.  (a) The board shall fix the payment of royalties to the State for the utilizationof geothermal resources at a rate which will encourage the initial andcontinued production of such resources.  With respect to all geothermal miningleases previously issued or to be issued, where the board determines that it isnecessary to encourage the initial or continued production of geothermalresources, the board shall have the authority to waive royalty payments to theState for any fixed period of time up to but not exceeding eight years.

(b)  The board shall adopt, amend, or repealrules pursuant to chapter 91 to establish the basis upon which the amount andduration of royalty payments to the State will be fixed or waived.  The board'sassessment of each application shall include, but not be limited to, theexamination of such factors as the progress of geothermal development takingplace in the State at the time of the application, the technical and financialcapabilities of the applicant to undertake the project, and the need forproviding a financial incentive in order for the applicant to proceed.  Thegranting of any favorable terms to an applicant for the payment of royaltiesunder this section may be revoked by the board if the applicant fails tosatisfy any of the terms and conditions established by the board, or if theapplicant wholly ceases operations and for reasons other than events which areoutside the control of the parties and which could not be avoided by the exerciseof due care by the parties.

(c)  The board shall submit a written report ofall geothermal royalty dispositions to the legislature in accordance withsection 171-29. [L 1985, c 138, §1]

 

Cross References

 

  Royalty to counties, see §182-7(c).