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December 2008

Vol. 13, No. 52 Week of December 28, 2008

Feds complete geothermal leasing plan

More than 190 million acres in 12 western states — including Alaska — available for leasing, development of geothermal resources

Kristen Nelson

Petroleum News

A potential of 5,500 megawatts of new electric generation capacity is possible from geothermal resources in 12 western states, including Alaska, by 2015, the U.S. Bureau of Land Management said Dec. 18 in releasing a record of decision and approved resource management plan amendments for geothermal leasing.

The decision makes more than 190 million acres of federal land available for leasing and potential development of geothermal energy resources.

“Geothermal energy will play a key role in powering America’s energy future,” Interior Secretary Dirk Kempthorne said in a statement. “All but 10 percent of our geothermal resources are found on federal lands and facilitating their leasing and development is crucial to supplying the secure, clean energy American homes and businesses need.”

BLM said the approved development scenario envisions as many as 270 western communities could benefit from direct uses of geothermal including heat for buildings; uses in greenhouses and aquaculture; and other possibilities for reducing the need for conventional energy sources.

The record of decision amends 114 BLM resource management plans and allocates some 111 million acres of BLM-managed public lands as open for leasing. An additional 79 million acres of National Forest System lands are also legally open for leasing, the agency said, and since site-specific analysis of future leasing nominations, permit applications and operations plans can refer back to the impact analysis and best management practices included in the approved resource management plan amendments, processing time for future geothermal development will be reduced.

Approvals needed

BLM said future geothermal leasing will be subject to all existing laws, regulations and orders, as well as stipulations and terms and conditions, and a comprehensive list of stipulations, conditions of approval and best management plans required for approval of future leases is included in the record of decision.

Lands withdrawn from or administratively closed to geothermal leasing — such as Yellowstone National Park — will continue to be closed to leasing. Wilderness and wilderness study areas are also excluded and BLM has the discretion to close areas of critical environmental concern where appropriate.

BLM said the Forest Service will use information in the programmatic environmental impact statement to facilitate leasing analysis to determine whether geothermal leasing is appropriate and to evaluate land use plans and amend them as needed through a separate environmental review process and facilitate future decisions on leasing National Forest System lands for geothermal development.

Governors favorable

Results of the 60-day governors’ consistency review were favorable with none of the governors objecting to the proposed plan amendments, the agency said. The State of Alaska provided a letter finding that the preferred alternative and plan amendments were consistent with state interests, plans, policies and programs. The states of New Mexico and Utah provided comments and recommended changes to the preferred alternative and plan amendments; BLM said it responded to and resolved these questions and incorporated relevant and appropriate comments to improve the proposed plan amendments.

Public scoping meetings were held in July 2007 and the draft PEIS went out for public review and comment in June 2008, followed by public meetings in July 2008 and the final PEIS out for public review in fall 2008.

The PEIS was prepared in response to the Energy Policy Act of 2005.

29 geothermal power plants

There are 29 geothermal power plants operating on BLM lands in California, Nevada and Utah, with total generating capacity of 1,250 megawatts.

The agency said federal lands in the western U.S. contain the largest supply of known geothermal resources in the country. On lands already allocated for geothermal use, an August 2007 sale drew the highest-ever per-acre bid for a lease in California’s Geysers field and a sale of leases in Nevada brought a record-breaking $28.2 million in August 2008.

BLM said geothermal leasing revenues and royalties are shared with the states and counties where leases are located, with 50 percent going to the state and 25 percent to the county.

The U.S. is the world leader in generating electricity from geothermal energy, with some 16,010 gigawatt-hours of electricity generated in 2005. BLM said almost half of this energy production — and about 90 percent of U.S. geothermal resources — are on federal lands.

In Alaska the Ring of Fire resource management area has 992,786 acres open for geothermal leasing, with a projected 20 megawatts of power possible from geothermal by 2015 and some 150 megawatts by 2025. More than 3 million acres are open for leasing in the Central Yukon resource management plan area, but BLM is not projecting any electric generation from geothermal resources.

Pending applications for three 2,560-acre leases at Bell Island Hot Springs in Southeast Alaska are for a 20-megawatt power plant to provide power for Bell Island Hot Springs and possibly to the nearby Yes Bay Lodge via underwater cable.

Exploration at Bell Island would involve drilling some six temperature-gradient holes to test for a commercially viable source.






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