HB 085: GEOTHERMAL RESOURCE LEASING

An Act Relating To Public Lands; Amending Sections Of The Geothermal Resources Act To Provide For Conditions Of Leases Of Geothermal Resources To Sustain The Resource And For Terms Based On Fair Market Value.

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MOD HB 085
GEOTHERMAL RESOURCE LEASING

Legislative URL:

HB 085 on nmlegis.gov

Emergency Clause:

No

Germane:

N/A

Location:

Signed

Action:

[2] HENRC/HJC/HAFC-HENRC [7] DP/a-HJC [20] DP/a-HAFC [22] w/drn [25] PASSED/H (64-0) [18] SCONC/SJC/SFC-SCONC [32] DP/a-SJC [38] w/drn-SFC [40] DP [44] PASSED/S (40-0) [51] h/cncrd SGND (Apr.2) Ch.125.

Issue(s):

Energy

Related Legislators

Bill Sponsor:

Brian Egolf, Jr.

Related Documents

Downloads:

Introduced
HENRC Committee Report
HJC Committee Report
Final House Vote
SCONC Committee Report
SFC Committee Report
Final Senate Vote
Fiscal Impact Report
Final Version

Summary

This measure makes several changes to the Geothermal Resources Act that addresses the leasing of geothermal resources on State Lands.

First, the bill refines the definition of “geothermal resources” by requiring that the heat or energy be greater than 250 degrees to be considered a “geothermal resource” for purposes of the Act. It also specifically excludes natural heat that is 250 degrees or less “as may be used for the heating and cooling of buildings through an on-site geoexchange heat pump or similar on-site system.”

The bill adds a provision that allows (not requires) geothermal resources to be administered as renewable energy resources. That would mean that the lease or regulation of a geothermal resources field must require that the field not be diminished with respect to measurable quantity, quality or temperature other than seasonal fluctuations.

Finally, the bill amends the Act’s provisions on rental and royalty payments for geothermal resource leases with the State Land Office. Current law sets forth a detailed series of rents and royalties based on fixed percentages, for example, ten percent of the gross revenue, while the bill sets forth a series that is based of fair market value.

The bill is introduced for the Interim Science, Technology and Telecommunications Committee.

Outcome: HB 85 passed the House (64-0) and Senate (40-0), and was signed into law on April 2nd, 2013.

Date of Summary:  1/18/2013; Updated 5/16/13