Thursday, October 19, 2017

USA: New Geothermal Payor Handbooks Offers Guidance for Royalty Valuation Procedures

New Geothermal Payor Handbooks from the Office of Natural Resources Revenue - U.S. Department of the Interior

The Office of Natural Resources Revenue (ONRR), within the Department of the
Interior, is responsible for ensuring the proper collection, accounting for, and
disbursement of all revenues from Federal geothermal leases to the appropriate

The Bureau of Land Management (BLM) administers 245 million acres or one-tenth of America’s land base and 700 million acres of subsurface mineral estate. Other Federal agencies such as the Forest Service and Fish and Wildlife Service also manage some surface lands, while the BLM manages the Federal onshore subsurface.

BLM sets the lease terms such as royalties and rentals while ONRR collects these payments and disburses them to the U.S. Treasury, states, and counties.

The U.S. Office of Natural Resources Revenue (ONRR) Geothermal Payor Handbook is divided into two volumes- Geothermal Payor Handbook-Class 1 Leases and Geothermal Payor Handbook- Class 2 & 3 Leases.

In order to know which volume to use, use the diagram above as a short guide for those who need help determining which class of geothermal lease they have.