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.

If passed by the House and signed by President Bush, the bill could put an end to the threat of energy development in the Jemez Mountains preserve, known for its scenic beauty, quality trout creeks and vast elk herds.

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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