Page:United States Statutes at Large Volume 119.djvu/687

 PUBLIC LAW 109–58—AUG. 8, 2005

119 STAT. 669

‘‘(b) REQUIREMENT TO SATISFY ANNUAL MINIMUM WORK REQUIREMENT.— ‘‘(1) IN GENERAL.—The lessee for a geothermal lease shall, for each year after the 10th year of the lease, satisfy minimum work requirements prescribed by the Secretary that apply to the lease for that year. ‘‘(2) PRESCRIPTION OF MINIMUM WORK REQUIREMENTS.—The Secretary shall issue regulations prescribing minimum work requirements for geothermal leases, that— ‘‘(A) establish a geothermal potential; and ‘‘(B) if a geothermal potential has been established, confirm the existence of producible geothermal resources. ‘‘(c) PAYMENTS IN LIEU OF MINIMUM WORK REQUIREMENTS.— In lieu of the minimum work requirements set forth in subsection (b)(2), the Secretary shall by regulation establish minimum annual payments which may be made by the lessee for a limited number of years that the Secretary determines will not impair achieving diligent development of the geothermal resource, but in no event shall the number of years exceed the duration of the extension period provided in subsection (a). ‘‘(d) TRANSITION RULES FOR LEASES ISSUED PRIOR TO ENACTMENT OF ENERGY POLICY ACT OF 2005.—The Secretary shall by regulation establish transition rules for leases issued before the date of the enactment of this subsection, including terms under which a lease that is near the end of its term on the date of enactment of this subsection may be extended for up to 2 years— ‘‘(1) to allow achievement of production under the lease; or ‘‘(2) to allow the lease to be included in a producing unit. ‘‘(e) GEOTHERMAL LEASE OVERLYING MINING CLAIM.— ‘‘(1) EXEMPTION.—The lessee for a geothermal lease of an area overlying an area subject to a mining claim for which a plan of operations has been approved by the relevant Federal land management agency is exempt from annual work requirements established under this Act, if development of the geothermal resource subject to the lease would interfere with the mining operations under such claim. ‘‘(2) TERMINATION OF EXEMPTION.—An exemption under this paragraph expires upon the termination of the mining operations. ‘‘(f) TERMINATION OF APPLICATION OF REQUIREMENTS.—Minimum work requirements prescribed under this section shall not apply to a geothermal lease after the date on which the geothermal resource is utilized under the lease in commercial quantities.’’. SEC. 232. ADVANCED ROYALTIES REQUIRED FOR CESSATION OF PRODUCTION.

Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) (as amended by sections 223, 224, and 230) is further amended by adding at the end the following: ‘‘(f) ADVANCED ROYALTIES REQUIRED FOR CESSATION OF PRODUCTION.— ‘‘(1) IN GENERAL.—Subject to paragraphs (2) and (3), if, at any time after commercial production under a lease is achieved, production ceases for any reason, the lease shall remain in full force and effect for a period of not more than

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