As a county with some of the largest geothermal resources in the nation, Churchill County would face losing more than $800,000 if a portion of the proposed federal budget to repeal geothermal rents and royalties is approved.

The proposed budget would repeal the 25 percent royalty shares for counties and the five-year dedication, 25 percent federal share to the Bureau of Land Management program, according to reports from Dan Schochet, executive director of the Geothermal Energy Association, in an e-mail.

"As I understand it, the latter repeal would stop the BLM geothermal program in its tracks," he said.

According to the Energy Policy Act of 2005, geothermal lease revenue was established to expedite geothermal leasing, said Schochet.

"Twenty-five percent of geothermal bonuses, rents and royalties are authorized to be deposited to this account through 2010," he said. "The budget proposes to eliminate this fund and to provide additional funding for these purposes through increased user fees."

The county received $930,000 for fiscal year 2006 from this revenue, said Alan Kalt, county comptroller. It is projected that the county will receive approximately $820,000 for fiscal year 2007.

The board of county commissioners worked diligently to get the geothermal revenue in place, he said. The money is split in thirds between three county funds: major capital enhancement, the building reserve fund and the road equipment replacement plan. The county receives approximately $65,000 per month from geothermal revenue, Kalt said.

"It would be a significant impact to capital enhancement if we were to lose this revenue," said Kalt. "Year to date, the county has already received $547,255 for fiscal year 2007."

Kalt said the county shares concerns with the geothermal industry.

In a draft letter to U.S. Sen. Harry Reid, Churchill County officials ask the senator for his support in defeating the proposed repeal of geothermal rents and royalties.

"Continued funding is necessary for us to sustain our community at a level that encourages economic development," states the draft letter. "We strongly advocate your favorable support of renewable geothermal development and payment of rents and royalties directly to those local governments where the resources are developed."

Sen. Reid's office replied to questions about the proposed fiscal year 2008 budget, saying there was little support in Congress for the repeal of the geothermal rents and royalties portion of the budget plan.

"This is yet another proposal by the administration to hurt the geothermal industry and the counties that would benefit from geothermal production," said Reid in a prepared statement. "It has nearly no support in Congress and I will do everything I can to prevent it from going anywhere in the Senate."