Correspondence re: NELH Geothermal Resources Mining Lease S-4602

Abstract

Status of NELH Geothermal Resources Mining Lease S-4602. The original purpose and terms of the lease ceased after plugging and abandonment of the HGP-A well in 1999. Continued operation of the facility and authorization under the current mining lease may be in question. If the lease is terminated, the leased area will be removed from the geothermal resource subzone area and adjacent landowner notification may be required. Certain geothermal activities can only be permitted within geothermal resource subzones. The AG was to issue an opinion that since the well has been plugged and abandoned and there is no geothermal activity, automatic lease termination is an option. Puna Geothermal Venture (PGV) was selected by NELHA to operate the Noii O Puna research facility in December 2001. An option is to set aside the leased area (not the geothermal resource) by executive order. The AG was researching the option to set aside the leased area by executive order to issue an opinion. The subject lease was one of two leases grandfathered by the Legislature as part of subzones only for the duration of the leases. The AG was also planning to issue an opinion that: 1) lease termination would terminate the subzone, 2) publication of a newspaper notice would be sufficient notification for the removal of a grandfathered subzone due to the termination of mining leases or for any other modifications to subzone boundaries, and 3) for an officially designated subzone, individual notification would be appropriate.