Current through Register Vol. 50, No. 9, September 20, 2024
A. The State
Mineral Board, through the Office of Mineral Resources, shall publish an
advertisement of the state tract offered for wind lease and request for bids in
the official journal of the state and official journal(s) of the parish(es)
where the lands are located, and otherwise at its discretion, not more than 120
days and not less than 60 days prior to the date for the public opening of bids
(generally the lease sale date). The advertisement shall contain a description
of the land proposed to be leased and its official tract number, any notes
pertaining to the nominated tract, the date, time and place where sealed bids
shall be received and publicly opened, a statement that a bid shall only be for
the whole of the land advertised and no portion bids will be accepted, the
minimum dollar amount (bonus) and minimum electric power production royalty to
be demanded, and any other information the board may consider necessary. This
advertisement and any other published by the board shall constitute judicial
advertisement and legal notice within the contemplation of R.S. Title 43,
Chapter 5.
B. The advertisement
shall also provide notice of the following.
1. A party shall bid on the whole of the land
advertised. A portion bid shall not be accepted.
2. A wind lease on state lands and water
bottoms shall have a primary term of five years.
3. The dollar amount (bonus) with regard to
any wind lease on state lands and water bottoms shall be no less than the
minimum amount set by the State Mineral Board. The dollar amount shall be
provided on the official bid form as a total amount and as an amount per acre
(which is equal to the dollar amount divided by the acreage bid on). The dollar
amount (bonus) bid shall be due within 24 hours of state wind lease award.
Payment shall be made to the Office of Mineral Resources via certified funds or
wire transfer. If payment is not made the State Mineral Board may not execute
the lease and may rescind it.
4.
The annual rental with regard to any wind lease on state lands and water
bottoms shall not be for less than one-half of the dollar amount
(bonus).
5. The electric power
production royalty with regard to any wind lease on state lands and water
bottoms shall be no less than the minimum amount set by the State Mineral Board
of the lessee's gross revenues. The state may elect, at its option, to take in
kind all or any of the portion due it as royalty.
6. A bidder for a state wind lease may offer
additional consideration.
7. When
two or more parties submit a joint bid, the parties shall designate the
undivided percent interest of each party on the official bid form. The
interests so designated shall be stipulated in any lease that may be awarded.
Failure to designate the undivided percent interest of each joint bidder shall
result in the State Mineral Board assigning equal interests to each
bidder.
8. When two or more parties
submit a joint bid, the parties shall designate the party who shall be the
principal state wind lessee, authorized to act on behalf of all co-lessees, on
the official bid form. Additionally, each party shall submit a designation of
principal state wind lessee and operator form with the joint bid. The principal
state wind lessee and operator so designated shall be stipulated in any lease
that may be awarded.
9. A state
wind lease shall not be for more than 5,000 acres.
10. The State Mineral Board is authorized to
collect an administrative fee for leasing state lands and water bottoms for the
exploration, development and production of wind energy in the amount of 10
percent of the total dollar amount (bonus) bid for a state wind lease. This 10
percent administrative fee shall be in addition to the total dollar amount bid
and is due within 24 hours of state wind lease award. Payment shall be made to
the Office of Mineral Resources via certified funds or wire transfer. If
payment is not made the State Mineral Board may not execute the lease and may
rescind it.
11. A bid for a state
wind lease shall exclude all rights not specifically granted in any wind lease
awarded.
12. Once a bid is
submitted, it may not thereafter be withdrawn or cancelled. The State Mineral
Board does not obligate itself to accept any bid. Bid acceptance or rejection
is at the sole discretion of the State Mineral Board which reserves the right
to reject any and all bids or to grant a wind lease on any portion of the state
tract advertised and to withdraw the remainder of the tract.
13. If examination of the successful bid
acreage amount reveals that there is more or less state acreage than the amount
bid on, then the dollar amount (bonus) and annual rental shall be adjusted
accordingly.
14. The successful
bidder(s) to whom a state wind lease is awarded has 20 days from receipt of the
lease contract, properly executed by the State Mineral Board, to execute and
return the lease contract to the Office of Mineral Resources. Failure to return
the lease contract, properly executed, within 20 days may result in forfeiture
of the state wind lease including the dollar amount (bonus) and 10 percent
administrative fee.
15. All state
wind leases shall be executed upon the terms and conditions provided in the
current official state wind lease form with any attached rider(s).
16. Notwithstanding any provisions to the
contrary in any state wind lease awarded or in any rider attached thereto, the
lease awarded shall be granted and accepted without any warranty of title and
without any recourse against the lessor whatsoever, either expressed or
implied. Further, lessor shall not be required to return any payments received
under the state wind lease awarded or be otherwise responsible to the state
wind lessee therefor.
17. Some
tracts available for wind leasing may be situated in the Louisiana Coastal Zone
as defined in
R.S.
49:214.21 et seq., and may be subject to
guidelines and regulations promulgated by the Louisiana Department of Natural
Resources, Office of Coastal Restoration and Management, Coastal Management
Division, for operations in the Louisiana Coastal Zone.
18. Lessor excepts and reserves the full use
of the leased premises and all rights with respect to its surface and
subsurface for any and all purposes except for those granted to the state wind
lessee, including the use of the leased premises for the exploration,
production and development of oil, gas and other minerals by the lessor, its
mineral lessees, grantees or permittees. Co-users of the leased premises shall
agree to coordinate plans and cooperate on activities to minimize interference
with other operations to the extent possible.
19. Any and all wind data collected by the
state wind lessee during the primary term of the lease shall become public
record at the end of the primary term.
20. Any contract entered into for the lease
of state lands for any purpose shall require that access by the public to
public waterways through the state lands covered by the lease shall be
maintained and preserved for the public by the lessee. This provision shall not
prohibit the secretary of the agency having control over the property from
restricting access to public waterways if he determines that a danger to the
public welfare exists. This provision shall not apply in cases involving title
disputes.
21. Prior to commencing
construction, each state wind lessee and state wind lease operator shall have a
general liability insurance policy in a form acceptable to the State Mineral
Board as set forth in
§1029. A 2
22. Prior to commencing construction, each
state wind lessee and state wind lease operator shall provide financial
security in a form acceptable to the State Mineral Board as set forth in
§1029. A 3
23. The state wind lessee and state wind
lease operator shall be required, in the state wind lease contract, to take
measures to reduce risk to the state, including but not limited to, effecting
compliance with any and all wind energy standards established by the American
National Standards Institute (ANSI), the American Wind Energy Association
(AWEA), the International Electrotechnical Commission (IEC), and any other
entity responsible for establishing wind industry consensus standards.
Standards for wind energy development/operations include, but are not limited
to:
a. wind turbine safety and
design;
b. power
performance;
c. noise/acoustic
measurement;
d. mechanical load
measurements;
e. blade structural
testing;
f. power quality;
and
g. siting.
C. A party may request proof that
a tract was advertised in the official state and parish journals using the
official Request for Proof of Publication form published by the Office of
Mineral Resources. Proof of publication consists of certified copies of the
affidavits from the official state and parish journals attesting to
publication. There is a fee of $20 for providing proof of publication for a
tract.
D. If an applicant wants to
withdraw a nomination after the tract has been advertised for state wind lease,
he shall submit a letter requesting withdrawal of the nomination to the State
Mineral Board. No withdrawal shall be allowed unless approved by the State
Mineral Board. If the State Mineral Board approves the request, the nomination
fee payment shall not be refunded.
E. If a party wants to protest the State
Mineral Board wind leasing a state tract, he shall submit a formal letter of
protest to the State Mineral Board at least seven days prior to the meeting of
the State Mineral Board to receive bids on the tract (generally the lease sale
date). The letter of protest shall reference the appropriate tract number,
parish, and state mineral lease sale date, as well as set forth the source and
nature of the title claimed, how and when acquired, and by what legal
process.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
41:1734.
