§806.  Terms; rentals; royalties

A.  All state geothermal leases shall be granted for a maximum primary term of ten years and so long thereafter as geothermal operations are being conducted or geothermal resources are being produced or utilized in commercial quantities.

B.  Where a state geothermal lease provides for delay rentals, the annual rental shall be for not less than one dollar per acre or one-half the cash bonus, whichever is greater.

C.  Royalties on production obtained from a state geothermal lease shall be not less than the following:

(1)  A royalty of not less than ten percent of the price received for all geothermal resources produced and saved or utilized.

(2)  A royalty of not less than five percent of the value of any byproduct produced and saved or utilized.

D.  The term rental or royalty obtained by the state from a geothermal lease shall not affect or limit the compensation negotiated by the owners of adjoining or nearby property which may be affected or exploited by the lessee.

Added by Acts 1975, No. 784, §1.  Amended by Acts 1976, No. 134, §1.