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Jurisdictional review The U.S. Department of Energy, through the Geothermal Technology Program, is supporting the development and demonstration of coproduction of geothermal fluids at oil and gas production fields. Geothermal energy, in the form of heat or pressure, which is produced as a byproduct of oil and gas development is now being considered as a resource to produce electricity.57 Royalties For both competitive and non-competitive leasing, a royalty rate of 1.75% for Years 1 to 10 and 3.5% for Years 10+, charged on the gross proceeds derived from the sale of electricity.58 3.2 California Resource potential and installed capacity As of 2010, the installed capacity for geothermal power generation in California was 2565.5 MW,59 with approximately 2000 MW additional capacity in development.60 As of summer 2010 there were 92 leases covering 451 km2.61 Definition of geothermal resource The California Public Resource Code defines geothermal resources as “the natural heat of the earth, the energy, in whatever form, below the surface of the earth present in, resulting from, or created by, or which may be extracted from, such natural heat, and all minerals in solution or other products obtained from naturally heated fluids, brines, associated gases, and steam, in whatever form, found below the surface of the earth, but excluding oil, hydrocarbon gas or other hydrocarbon substances.” 62 Resource ownership, rights issuance and tenure Leasing of state land and mineral rights for renewable energy is under the authorization of California Environmental Quality Act 63 by the State Land Commission. Geothermal tenure can be obtained through two methods: competitive bidding leases and prospecting/exploration permits. For competitive bidding leases, the Commission selects land to be made available, and disposes of rights with an auction similar to the federal system.64 58 “Distribution and Disbursement of Royalties, Rentals, and Bonuses,” U.S. Code of Federal Regulations Title 30, Pt. 219. 59 Jennejohn, U.S. Geothermal Power Production and Development Update. 60 Ibid. 61 Witherbee, “Geothermal Leasing and Operations on BLM Managed Lands.” 62 Geothermal Resources Act, California Public Resources Code S. 6903. 63 California Environmental Quality Act, California Public Resources Code S. 21000-21177. 64 Geothermal Resources Act, California Public Resource Code S. 6901-6925.2. The Pembina Institute 23 Building a regulatory framework for geothermal development in the NWTPDF Image | geothermal energy development in the NWT
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