01-28-2015, 05:32 PM
Originally posted by ckg
I wonder how the royalties and regulatory environment compares to other places like Ormat's home state of Nevada? I wonder if there are so many hands in the cookie jar and how well it works over there?
Some quick numbers on the differences in royalties (regulatory differences are much more difficult to compare). Note that Hawai'i uses an older formula based on the value of the resource while other states have moved to a percentage based on geothermal income:
http://www.hnei.hawaii.edu/sites/dev.hne...202013.pdf Page 15
Hawai'i: Determining and Collecting Royalties: Current administrative rules provide that 10-20% of the gross amount or value of the geothermal resource produced shall be paid to the state. The methodology presently adopted by BLNR is based upon the federal Mineral Management Services’ approach using accepted formulas of revenue less allowable deductions patterned after federal mining leases and experience.
http://www02.lasvegassun.com/news/2010/m...its-steam/
Nevada: In addition to the lease income, the state will receive a portion of royalties on geothermal power plants. The current royalty rates, set by the federal government, are 1.75 percent of the gross income for the first 10 years of a project and 3.5 percent after that.
http://www.akbizmag.com/Alaska-Business-...rgy-Bills/
SB 243 assists companies in developing geothermal resources discovered in commercial quantities on state land by lifting the 10 to 15 percent royalty payment obligation currently in state statute. SB 243 instead levies the current federal royalty of 1.75% for the first 10 years, and 3.5% thereafter on geothermal resources.
Ormat has a 36,000 acre lease in Alaska for geothermal development.
http://www.ormat.com/news/latest-items/o...egislature
I wonder how the royalties and regulatory environment compares to other places like Ormat's home state of Nevada? I wonder if there are so many hands in the cookie jar and how well it works over there?
Some quick numbers on the differences in royalties (regulatory differences are much more difficult to compare). Note that Hawai'i uses an older formula based on the value of the resource while other states have moved to a percentage based on geothermal income:
http://www.hnei.hawaii.edu/sites/dev.hne...202013.pdf Page 15
Hawai'i: Determining and Collecting Royalties: Current administrative rules provide that 10-20% of the gross amount or value of the geothermal resource produced shall be paid to the state. The methodology presently adopted by BLNR is based upon the federal Mineral Management Services’ approach using accepted formulas of revenue less allowable deductions patterned after federal mining leases and experience.
http://www02.lasvegassun.com/news/2010/m...its-steam/
Nevada: In addition to the lease income, the state will receive a portion of royalties on geothermal power plants. The current royalty rates, set by the federal government, are 1.75 percent of the gross income for the first 10 years of a project and 3.5 percent after that.
http://www.akbizmag.com/Alaska-Business-...rgy-Bills/
SB 243 assists companies in developing geothermal resources discovered in commercial quantities on state land by lifting the 10 to 15 percent royalty payment obligation currently in state statute. SB 243 instead levies the current federal royalty of 1.75% for the first 10 years, and 3.5% thereafter on geothermal resources.
Ormat has a 36,000 acre lease in Alaska for geothermal development.
http://www.ormat.com/news/latest-items/o...egislature