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Geothermal royalties to local counties restored in the U.S.

Geothermal royalties to local counties restored in the U.S. Coil rig at Alum project site in Nevada (source: Sierra Geothermal Power)
Alexander Richter 12 Dec 2010

Geothermal lease revenues are about to be reinstated through a new legislation in the U.S., and there is hope it won´t be removed in the U.S. Senate.

In news from Nevada, “Republican Dean Heller, R-Nev., said today that the House has reinstated geothermal royalties to local counties in its funding bill.

Heller worked with House appropriators to ensure revenues will continue to be distributed to local governments.

“I have fought hard to ensure geothermal revenues are reinstated and thank my House colleagues for recognizing the importance of this funding to Nevada,” he said. “Western states lose substantial taxes and revenue opportunities because of the vast amount of federal lands.

“Ensuring these royalties will continue to be distributed is critical to our local communities and state. I call on Sens. (Harry) Reid and (John) Ensign to ensure the royalty fix is not removed in the Senate,” Heller said.

The Office of Management and Budget (OMB) determined that under the Continuing Resolution, the current government funding measure, counties are ineligible for geothermal revenue sharing payments for this fiscal year.

The language in the House funding bill would fix the problem and ensure the royalties continue to be paid to local governments. The funding bill passed the House in a vote today.

The royalties were established under the Energy Policy Act of 2005.”

Source: Nevada News Bureau