An innovative land trust funding Colorado schools since 1876.
FOR IMMEDIATE RELEASE
August 21, 2025
Colorado State Land Board to Cast Wider Net for Geothermal Development, Balancing Trust Value with Environmental Stewardship
Mount Princeton Parcel in Chaffee County will remain unleased for geothermal exploration pending future Board approval of competitive process
ALAMOSA, CO – The Colorado State Land Board voted at its August 14 meeting in Alamosa, Colorado to uphold staff’s recommendation to deny two requests to lease the Mount Princeton parcel in Chaffee County. As a result, the parcel will remain unleased for geothermal exploration. However, the Board also authorized the staff to issue a Request for Qualifications (RFQ) for entities qualified to develop geothermal resources and for the identification of State Land Board parcels suitable for this use.
The Board’s denial of leasing requests applies to:
- A geothermal exploration lease application submitted by Princeton Holdings LLC; and
- A request by Mount Princeton Geothermal LLC to extend an existing lease, which expired earlier this year.
In both cases, staff had recommended denial, citing the need for a more deliberate and transparent approach to the leasing opportunities on this state trust parcel. The Board concurred, voting unanimously to support the staff recommendations.
"The Mount Princeton area has significant geothermal potential, but it also has unique environmental, economic, and community considerations," said Deborah Froeb, President of the Colorado State Board of Land Commissioners. "We want to ensure that any leasing process we pursue is fair, competitive, and in the long-term best interest of our trust beneficiaries."
The intent of the RFQ is to ensure the Board receives full information from applicants about their capacity to develop geothermal resources and their identification of the best sites in the state to be pursuing this form of renewable energy.
"This is about getting the process right," said Dr. Nicole J. Rosmarino, Director of the State Land Board. "We have an obligation to protect the value of trust assets, consider environmental stewardship, and create opportunities for responsible energy development that benefit Colorado’s public schools. We are also committed to pursuing renewable energy, including geothermal. Our next step will be to cast a wider net to determine geothermal opportunities statewide."
Opportunity for a Competitive Leasing Process
The State Land Board has seen a surge of interest in geothermal leasing—both generally and for the Mount Princeton parcel specifically—from operators. This growing interest has been fueled by new state tax incentives, grant programs, and a clear regulatory framework for deep geothermal wells established by the Energy and Carbon Management Commission (ECMC). In addition, geothermal development has been spared from the renewable energy tax credit cuts made in the One Big Beautiful Bill Act.
The RFQ will help ensure future geothermal lessees have the financial and technical capability to bring the resource to production. This approach would allow the Board to compare offers, better inform decision-making, and maximize potential returns for the School Trust while balancing environmental and community considerations.
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Contact:
Emily Barbo
Public Information Officer
Colorado State Land Board
emily.barbo@state.co.us
720-854-3330
About the Colorado State Board of Land Commissioners:
The Colorado State Land Board is a constitutionally created agency that manages a $6 billion endowment of assets for the intergenerational benefit of Colorado’s K-12 schoolchildren and public institutions. The agency is the second-largest landowner in Colorado and generates revenue on behalf of beneficiaries by leasing three million surface acres and four million subsurface acres for agriculture, grazing, recreation, commercial real estate, rights-of-way, renewable energy, oil, gas, and solid minerals. The agency is entirely self-funded and receives no tax dollars.