Louisiana Administrative Code › Title 43 - NATURAL RESOURCES › Part V - Office of Mineral Resources › Chapter 7 - Leasing State Lands and Water Bottoms for the Exploration, Development and Production of Wind Energy › Section V-715 - Advertisement of State Tract Offered for Wind Lease and Request for Bids [Formerly LAC 43:I.1015]

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 §729. 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
				§729. 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.