Geothermal Steam Act of 1981

Geothermal Steam Act of 1981 - Amends the Geothermal Steam Act of 1970 to authorize the Secretary of the Interior to issue geothermal leases in any lands administered by another Federal agency or department.

Revises the definition of "known geothermal resource area" to mean an area where the Secretary determines the prospects for extraction of geothermal resources for generating electricity in commercial quantities warrant substantial expenditures.

Requires that lands within a known geothermal resource area which are offered for lease and which receive no bids be declassified and leased to the first qualified applicant.

Entitles the first qualified applicant for a lease not within a known geothermal resource area to a noncompetitive lease if the land involved is not designated a known geothermal resource area within one year of the application being filed and before the lease is issued. Permits such an applicant to match the highest competitive bid for such land if that land is designated within such time period.

Entitles the applicant or lessee responsible for the exploration resulting in the designation of a known geothermal resource area to a noncompetitive lease for all lands in the designated area for which the applicant or lessee had filed applications prior to such exploration.

Requires that geothermal leases provide for a royalty of: (1) not less than ten percent or more than 15 percent of the value of the energy produced and sold for electrical generation; or (2) not less than five percent or more than ten percent of such value produced for nonelectrical use.

Provides, in certain cases, that the term "commercial quantities" shall include, either: (1) a drilled well and a bona fide sale for delivery; or (2) proof of a commitment to construct utilization facilities. Authorizes the Secretary to consider an additional extension, of up to ten years, of an extended primary lease term if construction of such facilities has not been possible due to administrative delays beyond the lessee's control or demonstrated marginal economics of such facilities and if there has been substantial investment in development of the lease. Requires the lessee to make bona fide efforts to resolve such problems.

Increases the State-wide acreage limitation for Federal geothermal leases from 24,480 acres to 51,200 acres. Authorizes the Secretary to increase such limitation up to 115,200 acres at any time after 15 years from the effective date of the Geothermal Steam Act of 1970 (currently such limitation may be increased to 51,200 acres). Excepts from the counting of such limitation leases which contain wells capable of commercial production and leases operated under approved operating, drilling, or development contracts.

Permits readjustment of geothermal lease terms and conditions at 20 year intervals beginning 20 years after the date production is commenced (currently such readjustment is permitted at ten year intervals beginning ten years after geothermal steam is produced).

Prohibits the Secretary from issuing leases on acquired lands of other Federal agencies or departments without the consent of the agency or department head.

Authorizes the issuance of free use permits for: (1) noncommercial application of geothermal resources in lands administered by the Secretary; and (2) surface use and use of geothermal resources for the continued operation of any geothermal energy research and development facility, pilot plant, or demonstration facility the Federal interest in which is transferred. Permits the head of each Federal agency to develop, for the benefit of the agency, the geothermal energy resources within the lands under its jurisdiction provided such use is in the public interest and will not deter commercial development which might be more beneficial.

Authorizes the issuance of leases and exploration and testing activities on lands subject to wilderness study and on national forest lands identified by the President for further use planning. Requires that such leases include stipulations to ensure that such activities will not permanently impair the wilderness values of such lands.