Bill blocking New Mexico geothermal power-plant clears Senate
Albuquerque Journal, N.M. --Sep. 17--SANTA FE, N.M.
Sep. 17--SANTA FE, N.M. -- A resolution to the rancorous debate over a proposed geothermal power plant in the heart of the Valles Caldera National Preserve gained unanimous approval from the U.S. Senate this week.
In case the bill falters, or fails to provide a resolution, Geoproducts,
which holds the lease to develop the geothermal heat underlying the preserve, is
moving forward with plans to build an electricity generating plant.
"He has no choice, except to move ahead," until the bill passes and
the resolution ensured, said mineral rights owner Don Harrell referring to
GeoProducts president Ken Boren.
But all parties, including Boren and Harrell, say the are hopeful the
legislative fix will work.
"We really want to see this resolved to everyone's satisfaction,"
said preserve spokeswoman Julie Grey.
The Valles Caldera Preservation Act of 2003 sets out a path for the preserve
to acquire the remaining 12.5 percent of the mineral rights that weren't part of
the $101 million deal that made the former private ranch an 89,000-acre federal
preserve.
At the time of the sale, in 1999, the Forest Service offered $1.8 million for
the remaining 12.5 percent mineral interest, but the group of owners declined
the offer, saying their rights were worth closer to $15 million.
Since then, the rights to the minerals have been leased to Texas-based
GeoProducts, which has been moving forward with trying to get approval to
develop geothermal wells.
The new legislation directs the Agriculture Secretary to negotiate a price
for buying the remaining mineral rights. If the negotiations are unsuccessful,
the dispute goes to federal court for resolution. The Department of Agriculture
would use available funds to acquire the mineral interests, unless the court
sets a higher price, in which case the difference would be paid from a special
Department of Justice "judgment fund."
Before becoming effective, the bill, authored by senators Pete Domenici, R-N.M.,
and Jeff Bingaman, D-N.M., must first be approved by the House, then signed into
law by President Bush.
The solution was first proposed by the senators in April.
"This bill strikes an appropriate balance with an emphasis on protecting
the beauty of this land," Domenici said in a statement announcing the
Senate's approval of the measure.
"They don't have much time left in this Congress, but we are anxiously
awaiting and working hard to assure that we get that bill passed and on the
president's desk," Harrell said.
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