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-1015 - Advertisement of State Tract Offered for Wind Lease and Request for Bids

Current through Register Vol. 50, No. 6, June 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.