Page:United States Statutes at Large Volume 119.djvu/681

 PUBLIC LAW 109–58—AUG. 8, 2005

119 STAT. 663

‘‘(B) not less than 2 and not more than 5 percent of the gross proceeds from the sale of electricity produced from such resources during each year after such 10-year period;’’; and (2) by adding at the end the following: ‘‘(c) FINAL REGULATION ESTABLISHING ROYALTY RATES.—In issuing any final regulation establishing royalty rates under this section, the Secretary shall seek— ‘‘(1) to provide lessees a simplified administrative system; ‘‘(2) to encourage new development; and ‘‘(3) to achieve the same level of royalty revenues over a 10-year period as the regulation in effect on the date of enactment of this subsection. ‘‘(d) CREDITS FOR IN-KIND PAYMENTS OF ELECTRICITY.—The Secretary may provide to a lessee a credit against royalties owed under this Act, in an amount equal to the value of electricity provided under contract to a State or county government that is entitled to a portion of such royalties under section 20 of this Act, section 35 of the Mineral Leasing Act (30 U.S.C. 191), except as otherwise provided by this section, or section 6 of the Mineral Leasing Act for Acquired Lands (30 U.S.C. 355), if— ‘‘(1) the Secretary has approved in advance the contract between the lessee and the State or county government for such in-kind payments; ‘‘(2) the contract establishes a specific methodology to determine the value of such credits; and ‘‘(3) the maximum credit will be equal to the royalty value owed to the State or county that is a party to the contract and the electricity received will serve as the royalty payment from the Federal Government to that entity.’’. (b) DISPOSAL OF MONEYS FROM SALES, BONUSES, ROYALTIES, AND RENTS.—Section 20 of the Geothermal Steam Act of 1970 (30 U.S.C. 1019) is amended to read as follows: ‘‘SEC. 20. DISPOSAL OF MONEYS FROM SALES, BONUSES, RENTALS, AND ROYALTIES.

‘‘(a) IN GENERAL.—Except with respect to lands in the State of Alaska, all monies received by the United States from sales, bonuses, rentals, and royalties under this Act shall be paid into the Treasury of the United States. Of amounts deposited under this subsection, subject to the provisions of subsection (b) of section 35 of the Mineral Leasing Act (30 U.S.C. 191(b)) and section 5(a)(2) of this Act— ‘‘(1) 50 percent shall be paid to the State within the boundaries of which the leased lands or geothermal resources are or were located; and ‘‘(2) 25 percent shall be paid to the county within the boundaries of which the leased lands or geothermal resources are or were located. ‘‘(b) USE OF PAYMENTS.—Amounts paid to a State or county under subsection (a) shall be used consistent with the terms of section 35 of the Mineral Leasing Act (30 U.S.C. 191).’’. (c) NEAR-TERM PRODUCTION INCENTIVE FOR EXISTING LEASES.— (1) IN GENERAL.—Notwithstanding section 5(a) of the Geothermal Steam Act of 1970, the royalty required to be paid shall be 50 percent of the amount of the royalty otherwise required, on any lease issued before the date of enactment

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