If you drill it, they will come. Or so the U.S. Navy and Ormat Technologies believe when it comes to drilling for geothermal power at NAS Fallon.

The two parties announced a 50-year contract Monday to further develop geothermal energy on Naval Air Station property.

The first step in that process is the construction of an estimated 30-megawatt geothermal power plant near the base's southeast border. A 30-megawatt plant would provide enough power for 30,000 homes.

According to Ormat's contract with the U.S. Navy, the company has seven years to build the geothermal hub. But Ormat Nevada Vice President Dan Schochet said the facility will likely be on line within three to four years.

Any output from the plant will be sold through a long-term power purchase agreement to the Sierra Pacific Power Company.

The U.S. Navy stands to profit from the deal as well. The Navy will be compensated in the amount of 5 percent of all gross income from the power sales during the first 20 years of the plant's existence. After 20 years, the Navy's cut will jump to 15 percent of that income.

Schochet said Ormat would first look to any contractors in Northern Nevada to award bids to the project and added that the company has worked with A & K Earth Movers in the past.

But before any bids can be given out, Schochet said Ormat workers must first drill the area for up to one year to accurately determine the area's geothermal capability. Based on estimated 350-degree temperatures of water that had previously been found through drilling at NAS Fallon, Schochet said he is optimistic that a 30-megawatt plant is possible.

Couple a state mandate of 15 percent of Nevada energy coming from renewable resources by 2013 with Ormat's drive to establish power, and Schochet said the company has good reason to drill.

"We don't sit on our resources," Schochet said. "Our company is aggressive in pursuing renewable resources and generally prudent in finding that energy.

"Why buy oil from countries that hate us?"

Schochet said Ormat has also approached the U.S. Bureau of Land Management about acquiring parts of 6,000 acres of land adjacent to NAS Fallon for possible geothermal use in the future.

Ormat Nevada already has made an appearance in Churchill County with a plant near Salt Wells.

The company produces roughly 75 megawatts in Nevada, or enough power for about an estimated 75,000 homes.

Previous BLM studies have shown that as much as 1,000 megawatts of geothermal energy could be available as untapped power in Churchill County alone.

That kind of geothermal energy would be enough to provide power to a million homes.

Burke Wasson can be contacted at bwasson@lahontanvalleynews.com