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Jurisdictional review and tenure Royalties Geothermal operators must pay tax at a varying rate that is dependent on the ratio of the net proceeds to the gross proceeds.78 or from subsequent sale. Geothermal development is regulated by the Nevada Commission on Mineral Resources.73 Applicants apply for geothermal tenure from the Commission. A permit to drill or operate a geothermal well will be issued if the application is deemed consistent with policies to protect air, water and wildlife.74 The permit is issued for two years but may be extended upon request.75 A permit from the Commission is required to drill or operate a geothermal well. Other aspects of geothermal development are regulated by other state agencies: water appropriation permits for a geothermal flash system are required from the Division of Water Resources, sewage disposal permits are required from the Bureau of Health Protection Services, and water injection permit are required from the Division of Environmental Protection.76 An initial fee of $200 to $500 is required for the permit to drill industrial or commercial wells. Additional fees are required annually and/or based on the depth of the well.77 A minimum bond of $10,000 is required for each well that is drilled or operated. Some counties have regulations and fees related to well drilling. Specific requirements depend on the county. 3.4 British Columbia Resource potential and installed capacity One study suggests there is a potential of 1070 MW from the top six geothermal energy sites in British Columbia, but more studies are needed to estimate the full potential of geothermal resources.79 The Canadian Geothermal Energy Association has estimated that there is a minimum of 5000MW in western Canada, but encourages greater geoscience data collection.80 73 Nevada Commission on Mineral Resources, Division of Minerals, Energy Resource Permitting in Nevada (2007). http://minerals.state.nv.us/forms/ogg/_EnergyResourcePermittingInNV.pdf 74 “Geothermal Resources,” Nevada Revised Statutes 534A.070. 75 Ibid. 76 Nevada Commission on Mineral Resources, Division of Minerals, Energy Resource Permitting in Nevada. 77 “Geothermal Resources,” Nevada Revised Statutes 534A. 78 “Taxes on Patented Mines and Proceeds of Minerals,” Nevada Revised Statutes 362.140. 79 BC Hydro, Green and Alternative Energy Division, Green Energy Study for British Columbia (2002) http://www.bchydro.com/planning_regulatory/energy_technologies/green_energy_research.html 80 Personal communication, Alison Thompson, Canadian Geothermal Energy Association, January19, 2011. The Pembina Institute 25 Building a regulatory framework for geothermal development in the NWTPDF Image | geothermal energy development in the NWT
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