Utah Geothermal Steam Lease (Trust Lands) (3-UT-e)
Geothermal Steam Lease (Trust Lands) Process
3-UT-e.1 – Does UTLA Own the Lands Fee Simple
In addition to this fee-ownership requirement, UTLA will not issue leases form less than a quarter-quarter section or surveyed lot unless it is specifically approved by the Director. Leases from UTLA are also limited to no more than 640 acres unless specifically approved by the Director.
3-UT-e.2 – Is Disposal through Competitive Bid Filing
When the UTLA has designated a competitive bid filing period, the application process follows the procedure beginning in 3-UT-e.4. For non-competitive applications for leases, the applicant should follow the process in 3-UT-e.3.
3-UT-e.3 – Application for Geothermal Steam Lease
When applications for leases are received for filing in the UTLA office, they are immediately stamped with the exact date and time of filing. The time indicated on the time stamp is deemed the time of filing unless the agency determines that the application is materially deficient in any particular or particulars. If an application is determined to be deficient, it will be returned to the applicant. If two or more applications for the same lease contain identical bids and bear a time stamp showing the applications were filed at the same time, the agency will award the lease by public drawing or oral bidding (R850-27-500).
3-UT-e.4 – Notice of Offering Lands for Competitive Bid
UTLA will offer notice for an offering of lands for competitive bid filing for no less than 15 consecutive days after the notice is posted in the agency office.
3-UT-e.5 - Geothermal Energy Competitive Application
A competitive bid application should be submitted to UTLA in a separately sealed envelope and marked for competitive bid filing. The minimum acceptable bid should be at least equal to the statutory rental rate for the first year of the lease (R850-27-500.3)
If any application is later rejected, any money tendered for rental will be refunded or credited to the applicant.
3-UT-e.6 to 3-UT-e.7 – Review Lease Application(s) and Select Successful Applicant
Prior to the issuance of a lease for geothermal resources, the applicant may be required to obtain insurance of a type and in an amount acceptable to the UTLA.
Proof of insurance is in the form of a certificate of insurance containing sufficient information to satisfy the agency that insurance provisions of the permit have been complied with (R850-24-200). The following requirements apply to the insurance provided by the applicant:
- shall be with an insurer with a financial rating assigned by the Best Insurance Guide of A:X or higher (unless waived by the agency)
- the agency retains the right to review the coverage, form, and amount of insurance at any time
3-UT-e.8 – Geothermal Steam Lease
3-UT-e.9 – Submit Plan of Operation and Bond Prior to Any Surface Disturbance (R850-24-700)
At least 60 days prior to the commencement of any surface disturbance, drilling, or other operations, the lessee shall submit a plan of operations to the UTLA in accordance with the terms and conditions required by the agency, as set forth in R850-24-700. Under no circumstance shall the lessee commence operations without a plan of operation approved by the agency. In addition, a bond may be required under R850-24-600.
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Utah School and Institutional Trust Lands Administration
Geothermal Steam Lease Contact #2 (Utah Trust Lands)