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Key Terms of the Lease
 
  • 160-acre RD&D Lease awarded by the Bureau of Land Management in January 2007
  • The lease is for an initial term of 10 year lease, with potential 5 year extension
  • Preference Right to expand to 5120 acres upon demonstration of a commercially viable process 
  • Requirements for Commercial Conversion:
    •  Production of shale oil in a manner that reasonably demonstrates that an expanded operation would be commercially viable
    • Payment of a bonus based on fair market value
    • Consultation with state and local officials to develop a plan for mitigating the socioeconomic impacts 
    • Posting of a reclamation bond
    • Determination that commercialization can be conducted, subject to mitigation measures, without unacceptable environmental consequences