The Impact of Geothermal Development on Stockraising Homestead Landowners
Highlights
A controversy exists at the Geysers Known Geothermal Resource Area in California, and possibly elsewhere, over compensation for geothermal development activities on lands acquired by private individuals but where the mineral interests are owned by the Federal Government. Thirty million acres of such land, thought to have limited use otherwise, have been conveyed to individuals for stockraising purposes. The Federal courts have held that geothermal resources were mineral resources and thus were subject to leasing on stockraising lands. Such leasing has begun and, as a result, some surface estate landowners lost rents and royalties anticipated for resources they thought were theirs, or otherwise felt threatened by development taking place around them.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Interior | The Secretary of the Interior should (1) require that the Bureau of Land Management (BLM) develop specific procedures for notifying surface owners of lease sales and the issuance of leases involving their land for geothermal as well as other mineral development; (2) take what steps he can to encourage lessees/developers and surface owners to enter into agreements concerning payment for damages to crops and other tangible improvements; (3) consider the BLM interpretation of the term tangible improvement as set out in the BLM memorandum of December 21, 1979; and (4) consider the extent to which compensation for indirect damages to tangible improvements should be allowed and whether the Stockraising Homestead Act should provide compensation for a decrease in the value of land and interference with its use and enjoyment. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
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