Louisiana Administrative Code › Title 43 - NATURAL RESOURCES › Part I - Office of the Secretary › Subpart 1 - General › Chapter 10 - Leasing State Lands and Water Bottoms for the Exploration, Development and Production of Wind Energy › Section I-1031 - State Wind Lease Electric Power Production Royalty Payment and Reporting

Current through Register Vol. 50, No. 6, June 20, 2024
A. A state wind
				  lease shall contain a provision permitting the state, at its option, to take in
				  kind all or any part of the portion due it as royalty of any wind generated
				  electric power produced from the leased premises. Unless the state elects to
				  exercise this in kind option, which option is expressly reserved by the state
				  and which is to be exercised by written notice by the state to the state wind
				  lessee ("lessee") at any time and from time to time while a state wind lease is
				  in effect and either prior or subsequent to acceptance by the state of
				  royalties other than in kind, it being understood that nothing contained in a
				  state wind lease shall ever be interpreted as limiting or waiving this option,
				  the lessee shall pay to the state as electric power production royalty an
				  amount that shall be no less than the minimum amount set by the State Mineral
				  Board of the lessee's gross revenues. For the purposes of a state wind lease,
gross revenues
shall mean and include:
1. all gross receipts of lessee from the sale
				  of electricity generated by lessee on the leased premises; provided, however,
				  that if electricity is sold to a subsidiary or affiliate of lessee, then, and
				  only then, the gross receipts from the sale of electricity under such contract
				  shall be calculated using a sale price of not less than the arithmetical
				  average of the prices paid by any purchaser or purchasers (including lessee or
				  any subsidiary or affiliate of lessee) for electricity produced in Louisiana
				  during the calendar year immediately preceding the year in which such
				  electricity production from the leased premises occurs; plus
2. the greater of the gross proceeds received
				  by either lessee or any subsidiary or affiliate of lessee from the sale of any
				  credits, credit certificates or similar items such as those for greenhouse gas
				  reduction, or the generation of green power, renewable energy or alternative
				  energy, created by any governmental authority and generated by wind energy
				  development on the lease; but specifically excluding any and all federal
				  production tax credits, investment tax credits and any other tax credits which
				  are or will be generated by wind energy development on the lease;
				  plus
3. the greater of gross
				  proceeds or other cash benefits received by either lessee or any subsidiary or
				  affiliate of lessee in connection with or under or derived from any agreement,
				  compromise, settlement, judgment or arrangement for or relating to the sale,
				  use or other disposition of electricity generated or capable of being generated
				  from the lease; plus
4. anything of
				  value received by the state wind lessee in return for electricity.