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Oregon Competitive Geothermal Lease (3-OR-d)

The competitive geothermal lease process is used for geothermal resources that have a high probability of geothermal resource development. The competitive leasing process is governed by OAR 141-075-0520.

Competitive Geothermal Lease Process

3-OR-d.1 - Public notice of proposed designation

Prior to designating a Designated Geothermal Resources Area, the Oregon Department of State Lands must publish a notice of its intention to do so in a newspaper of general circulation in each county in which the particular state-owned geothermal resource rights are located. See OAR 141-075-0530.

3-OR-d.2 - Establish "Designated Geothermal Resources Area" & bidding units

A Designated Geothermal Resource Area (DGRA) may be established based upon:

  • receipt of notice of the discover of geothermal resources under a geothermal resources lease, or upon learning that geothermal resources have been discovered on lands adjacent to state-owned geothermal resource rights; or
  • after conducting its own investigation of a particular area with reference to geothermal occurrences, either natural or man-made, geologic structures, present land uses, recreational potential, wildlife potential, geologic and geophysical test data, and other information of a factual nature.

See OAR 141-075-0525.

3-OR-d.3 - Notice of bidding

The Oregon Department of State Lands will publish a notice of opportunity to bid for leases within the DGRA in a newspaper of general circulation in the county or counties where the DGRA is located.

The notice will specify the time and place of bid opening, the manner in which bids shall be submitted, a description of the geothermal resources rights in each bidding unit, and the terms and conditions of the lease, including loyalty and rental rates. The notice will also state that a proposed plan for reduction of environmental impacts and an environmental impact analysis of development and production alternatives will be required before a lease can be issued.

See OAR 141-075-0545 to 141-075-0550.

3-OR-d.4 - Application to Lease Geothermal Resource Rights, filing fee & bonus bid

Each bidder shall submit with his bid an application to lease geothermal resource rights, the filing fee required by rule 141-075-0040, and a certified or cashier's check, bank draft, or money order in teh amount of one-half of the amount of the applicant's bonus bid.

See OAR 141-075-0555.

3-OR-d.5 - Open & review bids

Opening bids and awarding leases follows a procedure set by rule.

  • all bids received within the deadline state in the notice shall be opened and announced at the place, date, and hour specified in the notice
  • the Oregon Department of State Lands shall have the right to reject any and all bids submitted. Incomplete and nonconforming bids shall be rejected and the bonus bid deposits returned
  • within 30 days of the bid opening, or such longer periods as may be specified in the notice of bids, the Director shall award a lease for each bidding unit to the qualified applicant which is highest bidder. If the Director does not award a lease within the required period, all bids shall be considered rejected.

See OAR 141-075-0560.

3-OR-d.6 to 3-OR-d.7 - Geothermal Resource Rights Lease

If the lease is awarded, a form of lease is sent to the successful bidder, who must execute it wihtin 30 days of receipt, pay the first year's rental and pay the balance of its bonus bid. Within 120 days, and prior to commencing the operations under the lease, the lessee shall file the corporate surety bond required by the Division, file evidence of required insurance, and file completed agreements for environmental protection and surface management.

See OAR 141-075-0565.

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