Page:United States Statutes at Large Volume 94 Part 1.djvu/813

 PUBLIC LAW 96-294—JUNE 30, 1980 TITLE VI—GEOTHERMAL ENERGY SHORT TITLE

94 STAT. 763 Geothermal Energy Act of 1980.

SEC. 601. This title may be cited as the "Geothermal Energy Act of 30 USC I50i 1980". ''°*^FINDINGS

SEC. 602. The Congress finds that— (1) domestic geothermal reserves can be developed into regionally significant energy sources promoting the economic health and national security of the Nation; (2) there are institutional and economic barriers to the commercialization of geothermal technology; and (3) Federal agencies should consider the use of geothermal energy in the Government's buildings.

30 USC 1501.

SUBTITLE A LOANS FOR GEOTHERMAL RESERVOIR CONFIRMATION

SEC. 611. (a) The Secretary of Energy (hereafter in this title referred to as the "Secretary') is authorized to make a loan to any person, from funds appropriated (pursuant to this subtitle) to the Geothermal Resources Development Fund established under section 204 of the Geothermal Energy Research, Development, and Demonstration Act of 1974 (30 U.S.C. 1144), to assist such person in undertaking and carrying out a project which (1) is designed to explore for or determine the economic viability of a geothermal reservoir and (2) consists of surface exploration and the drilling of one or more exploratory wells. (b) Subject to subsection (c) and to section 613(b), any loan under subsection (a) shall be repayable out of revenue from production of the geothermal energy reservoir with respect to which the loan was made, at a rate, in any year, not to exceed 20 per centum of the gross revenue from the reservoir in that year; except that if any disposition of the geothermal rights to the reservoir is made to one or more other persons by the borrower, the full amount of the loan balance outstanding, or so much of the loan balance outstanding as is equal to the full amount of the compensation realized by the borrower upon such disposition, whichever is less, shall be repaid immediately. In any case where the reservoir is confirmed (as determined by the Secretary), the Secretary may impute a reasonable revenue for purposes of determining repayment if— (1) reasonable efforts are not made to put such reservoir in commercial operation, (2) the borrower (or any such other person) utilizes the resources of the reservoir without a sale of the energy or geothermal energy resources therefrom, or (3) a sale of energy or geothermal energy resources from the reservoir is made for an unreasonably low price; except that no such imputation of revenue shall be made during the three-year period immediately following such reservoir confirmation. In the event of failure to begin production of revenue (or, where no sale of energy or geothermal energy resources is made, to begin production of energy for commercial use) within five years after the date of such reservoir confirmation, the Secretary may take action to

30 USC 1511.

Repayment.

Production failure.

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