BLM geothermal lease sale nets $29,600
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Today, the Bureau of Land Management Colorado State Office leased one geothermal parcel offered at its quarterly oil, gas and geothermal lease sale, totaling approximately 800 acres. The per-acre price was $37 for the parcel in Chaffee County that sold to 3E Geothermal, LLC in Colorado Springs. The company paid a bonus bid of $29,600 for the parcel. Overall, the lease sale earned $29,600 in total proceeds, with 49 percent to go to the State of Colorado.
A company producing geothermal energy for commercial use on public lands is required to pay 1.75 percent of gross proceeds in royalties for the first 10 years plus the annual rental fee of $2 per acre. Leases not developed within 10 years will be terminated.
The State of Colorado received more than $229.4 million in Fiscal_Year 2009 from royalties, rentals and bonus bid payments for all federal minerals, including coal.
A lease is the first step for a company or individual before eventually applying to develop and produce oil and gas from the BLM-managed public mineral estate. Additional planning, environmental analysis and public input must occur before drilling can begin. Final sale results Map of all parcels prior to withdrawals
The BLM manages more than 245 million acres of public land located primarily in 12 western states, including Alaska, on behalf of the American people. The BLM also administers 700 million acres of sub-surface mineral estate throughout the nation. Our mission is to sustain the health, diversity, and productivity of America’s public lands for the use and enjoyment of present and future generations.