Geothermal royalty calculation

Abstract

Under Section 182-18 of Hawaii Revised Statutes, the Board of Land and Natural Resources (BLNR) is authorized to "fix the payment of royalties to the state for the utilization of geothermal resources at a rate which will encourage the initial and continued production of such resources." This section also provides that “…where the board determines that it is necessary to encourage the initial or continued production of geothermal resources, the board shall have the authority to waive royalty payments to the state for any fixed period of time up to but not exceeding eight years." Furthermore, "The board's assessment of each waiver application shall include, but not be limited to, the examination of such factors as the progress of geothermal development taking place in the state at the time of the application, the technical and financial capabilities of the applicant to undertake the project, and the need for providing a financial incentive in order for the applicant to proceed."