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Title: A review and analysis of the adequacy of the U. S. legal, institutional and financial framework for geothermal development

Journal Article · · Geothermics; (United States)

The legal and institutional framework within which geothermal energy in the United States must develop had its origin in the early 1970s. The first impetus for the establishment of such a framework was the early successful development of The Geysers geothermal field in northern California. The second impetus came form the oil embargo of 1972 which also raised the demand for the establishment of federal and state financial incentives to encourage more rapid development of geothermal energy. The legal and institutional framework developed by the states and the federal government often differed substantially in format, content, and direction. Too often the legal and institutional framework established left as many questions unanswered as answered, and in some cases, the framework has proven to be more of an obstacle to development than an aid. From an examination of how the states and the federal government have addressed the needs of geothermal development, and how the courts have interpreted some of their decisions, it has become clear that in order to ensure that the legal and institutional framework is adequate to serve the needs of geothermal development, it must address, at a minimum, the following topics: (1) providing developers with access and a priority right to carry out exploration and development activities; (2) carefully characterizing the resources so as to minimize conflicts with other natural resources; (3) establishing ownership; and (4) giving careful consideration to such lease terms as rentals and royalties, renewals, and diligence requirements. In addition, the framework must address groundwater law and its implications for geothermal development, and how geothermal development will be considered in terms of established utility law.

Research Organization:
Washington State Energy Office, 400 E. Union, Olympia, WA 98504
OSTI ID:
6562287
Journal Information:
Geothermics; (United States), Vol. 15:1
Country of Publication:
United States
Language:
English