(a) BLM will extend your lease for 5 years under a drilling extension if at the end of the 10th year or any subsequent year of the initial or additional extension of the primary term you:
- (1) Have not met the requirements that you must satisfy for BLM to grant or to continue the initial or additional extensions of your primary lease term under § 3207.12, or your lease is in its 20th year;
- (2) Commenced drilling a well before the end of such year for the purposes of testing or producing a geothermal reservoir; and
- (3) Are diligently drilling to a target that BLM determines is adequate, based on the local geology and type of development you propose.
- (b) The drilling extension is effective on the first day following the expiration or termination of the primary term.
- (c) At the end of your drilling extension, your lease will expire unless you qualify for a production extension under § 3207.15.