Utah BLM geothermal lease sale concluded with 11 parcels sold
A recent geothermal lease sale in the State of Utah, sold 11 of 28 offered parcels to two companies.
In a lease sale in December 2020, the U.S. Bureau of Land Management (BLM) Utah successfully sold 11 parcels offered in a competitive bidding process by the BLM’s Cedar City and Fillmore field offices. The sale resulted in a total of almost $168,900 in receipts.
Copland Clean Power, LLC submitted the highest total bid per acre — $10 — for parcel 27. Copland Clean Power, LLC submitted the highest total bid per parcel — $40,000 — for parcel 29.
Two companies gave bids and were successful in the bidding. Copland Clean Power LLC from Houston, Texas acquired 8 parcels, and Raser Power Systems LLC from Salt Lake City, Utah, acquired three leases.
For more details about the sale results, please visit: https://eplanning.blm.gov/eplanning-ui/project/1501632/510.
The BLM contributes to state and local jobs and revenues by providing opportunities for leasing and energy development on public lands. The parcels, if sold, will support well-paying energy industry jobs which contribute to revenues for Utah’s schools and infrastructure projects.
Responsible energy development includes thoughtful consideration of parcels nominated for leasing as well as the potential resource impacts of the decision to lease. An additional environmental review will take place at the Application for Permit to Drill stage, where additional site-specific Conditions of Approval can be placed on the permit, in addition to the lease stipulations.
Background
Geothermal leases are for a 10-year period. For each parcel, the bid, rental receipts, and subsequent royalties are disbursed such that approximately 50 percent of the funds are disbursed to the respective state, an additional 25 percent is disbursed to the respective county, and 25 percent remains in the U.S. Department of the Treasury.
The BLM manages public lands for many uses, including sustainable energy development. Each lease, if issued, contains standard stipulations to protect endangered species and cultural resources. After parcels are leased, lessees must submit site-specific proposals for additional in-depth analysis before energy development can begin.
Result summary
- Parcels offered 28
- Parcels sold 11 (40%)
- Acres offered 67,185
- Acres sold 26,200
- % Acres Sold 39%
- Highest Bid/Acre: $10.00
- Parcel with High Bid/Acre: 27
- Highest Bid/Parcel: $40,000
- Parcel with High Total Bid: 29
- Total Bonus Bid: $114,602
- Total Rental Due: $52.406
- Total Administrative Fees Due: $1870
- Total Receipts Due*: $168,878
Source: Utah BLM release (Dec. 2020)