The legal principles that will govern exploration for and utilization of geothermal resources are in their early development. Analogies with oil and gas laws and with mining laws are helpful, but novel characteristics of geothermal resources will require answers in addition to those found in these existing bodies of law.

Private land owners have encouraged geothermal ventures by signing "geothermal leases" with operating companies. These are patterned after oil and gas leases with added provisions to deal with minerals in solution and other problems unique to geothermal resources. The geothermal lease seems to be working, and to date the only commercial geothermal ventures in this country are on privately owned lands taken under such leases.

Existing federal law does not provide adequately for development of geothermal resources on the federal public domain. The need for specific legislation is recognized by both government and industry, but there is no agreement on the form this legislation should take. Pending the enactment of legislation, the Interior Department in 1967 made a controversial "executive withdrawal" of 1,051,000 acres of land having potential value for geothermal resources.

State geothermal leasing laws have been enacted in California and New Mexico. The active geothermal exploration and development in California will help set important patterns for development of geothermal resources on publicly owned lands.

The geothermal operator's obligations and liabilities are only partly defined by existing laws and regulations. Are geothermal exploration and production extrahazardous activities which will make operators strictly liable for damages, or is a negligence standard applicable? These are but two of many questions yet to be answered.

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