WAC 332-22-220. Geothermal resources lease — Minimum annual royalty

At the beginning of lease year 11, or at the beginning of the year in which production starts, whichever occurs first, a minimum annual royalty of not less than two dollars per acre per year, or $2,000, whichever is greater, shall be paid to the department, and shall replace the annual rental. Minimum annual royalty calculation shall be based off total leased acreage. Minimum annual royalty payments shall be credited against production royalties for that year. Minimum royalties paid during the term of the lease are nonrefundable and nontransferable. The department reserves the right to reassess the minimum annual royalty rate at year 20 of the lease and every 10 years thereafter, and adjust the rate to the then fair market value, however in no case shall the adjusted minimum annual royalty be less than the two dollars per acre, or $2,000 specified in this section.