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



(b)  The board shall adopt, amend, or repeal
rules pursuant to chapter 91 to establish the basis upon which the amount and
duration of royalty payments to the State will be fixed or waived.  The board's
assessment of each application shall include, but not be limited to, the
examination of such factors as the progress of geothermal development taking
place in the State at the time of the application, the technical and financial
capabilities of the applicant to undertake the project, and the need for
providing a financial incentive in order for the applicant to proceed.  The
granting of any favorable terms to an applicant for the payment of royalties
under this section may be revoked by the board if the applicant fails to
satisfy any of the terms and conditions established by the board, or if the
applicant wholly ceases operations and for reasons other than events which are
outside the control of the parties and which could not be avoided by the exercise
of due care by the parties.



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



 



Cross References



 



  Royalty to counties, see §182-7(c).