Form 3200-24 - Offer To Lease And Lease For Geothermal Resources Page 2
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34. (a) Undersigned certifies that:
(1)
Offeror is a citizen of the United States; an association of such citizens: a municipality; or a corporation organized under the laws of the United States, any State or the District of
Columbia; (2) All parties holding an interest in the offer are in compliance with 43 CFR 3200 and the authorizing Act; (3) Offeror’s chargeable interests, direct and indirect, do not exceed
that allowed under the Act; and (4) Offeror is not considered a minor under the laws of the State in which the lands covered by this offer are located.
(b) Undersigned agrees that signature to this offer constitutes acceptance of this lease, including all terms, conditions and stipulations of which offeror has been given notice, and any amendment
or separate lease that may cover any land described in this offer open to lease application at the time this offer was filed but omitted for any reason from this lease. The offeror further
agrees that this offer cannot be withdrawn, either in whole or part, unless the withdrawal is received by the BLM State Office before this lease, an amendment to this lease, or a separate
lease, whichever covers the land described in the withdrawal, has been signed on behalf of the United States.
This offer will be rejected and will afford the offeror no priority if it is not properly completed and executed in accordance with the regulations, or if it is not accompanied by the required payments.
Title 18 U.S.C. Sec. 1001 makes it a crime for any person knowingly and willfully to make to any Department or agency of the United States any false, fictitious or fraudulent statements
or
representa-
tions as to any matter within its jurisdiction.
Duly executed this
day of
, 20
.
(Signature or Lessee or Attorney-in-fact)
LEASE TERMS
lessor to accomplish the intent of this section. To the extent consistent with leased rights granted,
Sec. 1. Rentals-Rentals shall be paid to proper office of lessor in advance of each lease year
such measures may include, but are not limited to, modification to siting or design of facilities,
until there is production in commercial quantities from the leased lands. Annual rental rates per
timing of operations, and specification of interim and final reclamation measures. Lessor reserves
acre or fraction thereof are: $1 for noncompetitive leases and $2 for competitive leases.
the right to continue existing uses and to authorize future uses upon or in the leased lands, in-
If this lease or a portion thereof is committed to an approved cooperative or unit plan which
cluding the approval of easements or rights-of-ways. Such uses shall be conditioned so as to
includes a well capable of producing leased resources, and the plan contains a provision for
prevent unneccessary or unreasonable interference with rights of lessees.
allocation of production, royalties shall be paid on the production allocated to this lease. However,
Prior to disturbing the surface of the leased lands, lessee shall contact lessor to be apprised
annual rentals shall continue to be due for those lands not within a participating area.
Failure to pay annual rental, if due, on or before the anniversary date of this lease (or next
of procedures to be followed and modifications or reclamation measures that may be necessary.
Areas to be disturbed may require inventories or special studies to determine the extent of im-
official working day if office is closed) shall automatically terminate this lease by operation of
pacts to other resources. Lessee may be required to complete minor inventories or short term
law. Rentals may be suspended by the Secretary upon a sufficient showing by lessee.
special studies under guidelines provided by lessor. If in the conduct of operations, threatened
or endangered species, objects of historic or scientific interest, or substantial unanticipated en-
Sec. 2. Royalties-Royalties shall be paid to proper office of lessor. Royalties shall be com-
vironmental effects are observed, lessee shall immediately contact lessor. Lessee shall cease any
puted in accordance with regulations and orders. Royalty rates on production are: 10 percent
or
for steam, heat, or energy; 5 percent for byproducts; and 5 percent for demineralized water.
operations that would result in the destruction of such species
objects.
Lessor reserves the right to establish reasonable minimum values on production after giving
lessee notice and an opportunity to be heard. Royalties shall be due and payable on the last day
Sec. 7. Production of byproducts-If the production, use, or conversion of geothermal resources
of the month following the month in which production occurred.
from these leased lands is susceptible of producing a valuable byproduct or byproducts, including
A minimum royalty shall be due for any lease year beginning on or after the commencement
commercially demineralized water for beneficial uses in accordance with applicable State water
of production in commercial quantities in which royalty payments aggregate less than $2 per
laws, lessor may require substantial beneficial production or use thereof by lessee.
acre. Lessee shall pay such difference at the end of lease year. This minimum royalty may be
waived, suspended, or reduced, and the above royalty rates may be reduced for all or portions
Sec. 8. Damages to property-Lessee shall pay lessor for damage to lessor’s improvements,
of this lease if the Secretary determines that such action is necessary to encourage the greatest
and shall save and hold lessor harmless from all claims for damage or harm to persons or property
ultimate recovery of the leased resources, or is otherwise justified.
as a result of lease operations.
Sec. 3. Bonds-Lessee shall file and maintain any bond required under regulations.
Sec. 9. Protection of diverse interests and equal opportunity-
Lessee shall maintain a safe working
environment in accordance with standard industry practices and take measures necessary to pro-
Sec. 4.
Diligence, rate of development, unitization, and drainage-Lessee shall perform diligent
tect the health and safety of the public. Lessor reserves the right to ensure that production is
exploration as required by regulations and shall prevent unnecessary damage to, loss of, or waste
sold at reasonable prices and to prevent monopoly.
of leased resources. Lessor reserves right to specify rates of development and production in
Lessee shall comply with Executive Order No. 11246 of September 24, 1965, as amended,
the public interest and to require lessee to subscribe to a cooperative or unit plan, within 30
and regulations and relevant orders of the Secretary of Labor issued pursuant thereto. Neither
days of notice, if deemed necessary for proper development and operation of the area, field,
lessee nor lessee’s subcontractor shall maintain segregated facilities.
or pool embracing these leased lands. Lessee shall drill and produce wells necessary to protect
leased lands from drainage or pay compensatory royalty for drainage in amount determined by
Sec. 10. Transfer of lease interests and relinquishment of lease-As required by regulations,
lessor.
lessee shall file with lessor, any assignment or other transfer of an interest in this lease. Lessee
may relinquish this lease or any legal subdivision by filing in the proper office a written relin-
Sec. 5. Documents, evidence, and inspection-Lessee shall file with proper office of lessor,
quishment, which shall be effective as of the date of filing, subject to the continued obligation
not later than (30) days, after effective date thereof, any contract or evidence of other arrange-
of the lessee and surety to pay all accrued rentals and royalties.
ment for the sale or disposal of production. At such times and in such form as lessor may prescribe,
lessee shall furnish detailed statements showing amounts and quality of all products removed
Sec. 11.
Delivery of premises-At such time as all or portions of this lease are returned to lessor,
and sold, proceeds therefrom, and amount used for production purposes or unavoidably lost.
lessee shall place all wells in condition for suspension or abandonment, reclaim the land as
Lessee may be required to provide plats and schematic diagrams showing development work
specified by lessor, and within a reasonable period of time, remove equipment and improvements
and improvements, and reports with respect to parties in interest, expenditures, and deprecia-
not deemed necessary by lessor for preservation of producible wells or continued protection
tion costs.
of the environment.
In the form prescribed by lessor, lessee shall keep a daily drilling record, a log, and complete
information on well surveys and tests and keep a record of subsurface investigations and furnish
Sec. 12.
Proceedings in case of default-If lessee fails to comply with any provisions of this
copies to lessor when required. Lessee shall keep open at all reasonable times for inspection
lease, and the noncompliance continues for 30 days after written notice thereof, this lease shall
by any authorized officer of lessor, the leased premises and all wells, improvements, machinery,
be subject to cancellation in accordance with the Act. However, if this lease includes land known
and fixtures thereon, and all books, accounts, maps, and records relative to operations, surveys,
to
contain a well capable of production in commercial quantities, it may be cancelled only by
or investigations on or in the leased lands. Lessee shall maintain copies of all contracts, sales
judicial proceedings. This provision shall not be construed to prevent the exercise by lessor or
agreements, accounting records, and documentation such as billings, invoices, or similar documen-
any other legal and equitable remedy, including waiver of the default. Any such remedy or waiver
tation that support costs claimed as manufacturing, preparation, and/or transportation costs. All
shall not prevent later cancellation for the same default occurring at any other time.
such records shall be maintained in lessee's accounting offices for future audit by lessor. Lessee
shall maintain required records for 6 years after they are generated or, if an audit or investiga-
Whenever the lessee fails to comply in a timely manner with any of the provisions of the Act,
this lease, the regulations, or formal orders, and immediate action is required, the Lessor may
tion is underway, until released of the obligation to maintain such records by lessor.
enter on the leased lands and take measures deemed necessary to correct the failure at the ex-
During existence of this lease, information obtained under this section shall be closed to in-
pense of the Lessee.
spection by the public in accordance with the Freedom of Information Act (5 U.S.C. 552).
Sec. 6.
Conduct of operations-Lessee shall conduct operations in a manner that minimizes
Sec. 13. Heirs and successors-in-interest-
Each obligation of this lease shall extend to and be
adverse impacts to the land, air, and water, to cultural, biological, visual, and other resources,
binding upon, and every benefit hereof shall inure to, the heirs, executors, administrators, suc-
cessors, or assigns of the respective parties hereto.
and to other land uses or users. Lessee shall take reasonable measures deemed necessary by
(Form 3200-24, page 2)
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