Subject of Possible Rule Making: Update to geothermal lease rates on department of natural resources (DNR)-managed properties, WAC 332-22-200 through 332-22-230.

Statutes Authorizing the Agency to Adopt Rules on this Subject: This rule making is mandated by an amendment to RCW 79.15.590 [ 79.13.530] and section 465, chapter 334, Laws of 2003 through section 2 of SB [ESSB] 6039.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: DNR is required to commence rule making to update its geothermal resources lease rates for DNR-managed properties so that the lease rates are competitive with geothermal resource lease rates adopted by the federal government and other western states. The updated lease rates must optimize DNR's competitiveness at attracting geothermal exploration and development while balancing the obligations to trusts and not adversely impacting federally reserved tribal rights. The process may also address other language in WAC 332-22-200 through 332-22-230 to improve clarity. This rule making only addresses WAC 332-22-200 through 332-22-230 and will not address any other regulations on geothermal resources.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: DNR is the only agency managing leases of DNR-managed properties.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Kelsay Stanton, P.O. Box 47014, Olympia, WA 98504-7014, phone 360-790-8179, fax 360-902-1789, email Kelsay.stanton@dnr.wa.gov.