BLM California 16 Geothermal Lease Bids Receive Approximately $3.7 Million in Offers

en.Wedoany.com Reported - The U.S. Department of the Interior's Bureau of Land Management (BLM) has completed a competitive lease auction for federal geothermal resources in California, with 16 parcels receiving winning bids, covering a land area of 33,362.43 acres, with total high bids amounting to $3,687,071, approximately $3.6871 million. The BLM announced the auction results on October 28; the relevant leases still require review and payment procedures before they can be formally issued.

The parcels receiving winning bids in this auction are located in Modoc County, Sonoma County, Lake County, Mono County, and Inyo County, California. According to the auction results, a total of 6 companies submitted the highest bids for the 16 parcels, among which Coda Intermediate Holdings won 5 parcels, TLS Geothermics won 4 parcels, Oso Rojo won 3 parcels, Chocolate Mountain Resources won 2 parcels, and Zanskar Geothermal & Minerals and Cordillera each won 1 parcel.

Chocolate Mountain Resources' winning bids for parcels in Inyo County totaled approximately $1.47 million, while Oso Rojo's winning bids totaled approximately $1.35 million. The combined bid amount of the two companies exceeded $2.82 million, accounting for more than 75% of the total winning bid amount in this auction. All winning parcels in Sonoma County were awarded to Coda Intermediate Holdings with the highest bids, while all winning parcels in Mono County were awarded to TLS Geothermics with the highest bids.

The BLM previously published the bidding arrangements on September 11, initially planning to offer 19 parcels totaling approximately 40,000 acres across 6 counties in California. On October 27, 16 parcels actually received bids. The BLM stipulates that of the lease revenues and subsequent royalty payments, 50% is allocated to the State of California, 25% to the relevant counties, and 25% to the U.S. Federal Treasury. The initial term of the geothermal leases to be issued is 10 years.

The BLM will decide whether to issue the leases after completing review and payment. When lessee companies subsequently submit geothermal exploration or development plans, they will also be subject to site-specific environmental review, and operations involving surface disturbance must obtain the corresponding authorization.