RESTRICTED CASH
 12 Months Ended
Mar. 31, 2012
RESTRICTED CASH [Text Block]

NOTE 3 – RESTRICTED CASH

The Company maintains cash balances that are restricted under Letter of Credit covenants for State and Federal well bonding requirements. These bonds renew on an annual basis. Restricted cash balances and explanations of the nature of the restrictions are summarized as follows:

      March 31,  
State Agency     2012     2011  
Idaho Department of Water Resources, Geothermal Well Bond   $ 260,000   $ 260,000  
Bureau of Land Management, Geothermal Lease Bond – Gerlach Geothermal     10,000     10,000  
State of Nevada Division of Minerals, Statewide Drilling Bond     50,000     50,000  
Bureau of Land Management, Geothermal Lease Bonds     150,000     150,000  
Oregon Department of Geology and Mineral Industries, Mineral Land and Reclamation Program     325,000     175,000  
U.S. Department of Energy – Construction Loan Bond     2,125,000     -  
               
    $ 2,920,000   $ 645,000  

 

The well bonding requirements ensure that the Company has sufficient financial resources to construct, operate and maintain geothermal wells while safeguarding subsurface, surface and atmospheric resources from unreasonable degradation, and to protect ground water aquifers and surface water sources from contamination. Other future costs of environmental remediation cannot be reasonably estimated and have not been recorded. The construction bond is required by the Loan Guarantee Agreement with the Department of Energy at Neal Hot Springs and will convert to a plant reserve fund upon completion of the plant facility.