Marion County stands to receive roughly $289,000 from a federal geothermal lease sale that netted more than $1.15 million on Monday, Aug. 17, for two parcels in the Mount Hood National Forest.
The Bureau of Land Management accepted winning bids totaling $1,155,706 for the two parcels, which together cover more than 9,500 acres, according to a BLM press release and KYKN reporting.
Under the Energy Policy Act of 2005 and the Geothermal Steam Act, revenue from bonus bids, annual rental payments and any future production royalties is split three ways: 50 percent to the state where the leases are located, 25 percent to the county and 25 percent to the U.S. Treasury. Those shares are permanently appropriated under federal law, meaning the money flows to state and county governments without requiring an annual vote in Congress.
Based on that formula, the Chronicle calculates Marion County's 25 percent share of the bonus bids at approximately $289,000. Additional revenue could follow if the leaseholders eventually begin producing geothermal energy and paying royalties.
No drilling yet
Winning a lease does not mean geothermal development starts immediately. The BLM must still complete its review and receive payment from the winning bidders before formally issuing the leases. Any proposed exploration or energy production would require a separate environmental review under the National Environmental Policy Act.
"Geothermal is an abundant resource, especially in the West, with the potential to provide reliable energy," BLM Oregon-Washington State Director Kim Prill said in a press release. "The BLM is committed to unlocking that potential to support American energy production and our local economies."
The identities of the winning bidders have not been publicly disclosed.
What's unknown
The Marion County Board of Commissioners has not publicly commented on the lease sale or indicated how the county might use its share of the revenue. The Chronicle was unable to reach commissioners for comment on Aug. 17.
The BLM has not announced a timeline for formal lease issuance or any subsequent environmental review. No upcoming Marion County Board of Commissioners meeting date has been announced where residents could weigh in on the revenue.
