La. Admin. Code tit. 43 § I-1134

Current through Register Vol. 50, No. 6, June 20, 2024

Section I-1134 - Advertisement of a State Tract Offered for an Alternative Energy Source Lease and Request for Bids

A. The board, through OMR, shall publish an advertisement of the state tract offered for an AESL and request for bids in the official journal of the state and official journal(s) of the parish(es) where the land(s) is/are located, and, at its discretion, no less than 60 and no more than 120 days prior to the date for the public opening of bids. The advertisement shall contain the following, which shall constitute judicial advertisement and legal notice pursuant to Chapter 5 of Title 43 of the Louisiana Revised Statutes of 1950:

1. a legal description of the nominated acreage;

2. the official tract number of the nominated acreage;

3. the gross and net amount of state lands or water bottoms nominated;

4. the date, time and place where the sealed bids will be received and publicly opened. Once a bid is submitted, it may not be withdrawn or cancelled. The board does not obligate itself to accept any bid. Bid acceptance or rejection is at the sole discretion of the board which reserves the right to reject any and all bids or to grant an AESL on any portion of state lands or water bottom tracts advertised and to withdraw the remainder of the tract.

B. All state AESLs shall be executed upon the terms and conditions provided in the current official state AESL form with any attached rider(s).

C. Notwithstanding any provisions to the contrary in any state AESL 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 AESL awarded or be otherwise responsible to the state alternative energy source lessee therefore.

D. Some tracts available for AESL may be situated in the Louisiana Coastal Zone as defined in R.S. 49:214 et seq. and may be subject to guidelines and regulations promulgated by DNR, Office of Coastal Management, for operations in the Louisiana Coastal Zone.

E. Prior to commencing construction, each state alternative energy source lessee and state AESL operator shall have a general liability insurance policy in a form acceptable to the board as set forth in Subpart D of this Chapter.

F. Prior to commencing construction, each state alternative energy source lessee and state AESL operator shall provide financial security in a form acceptable to the board as set forth in Subpart D of this Chapter.

G. Lessor excepts and reserves the full use of the leased premises and all rights with respect to surface and subsurface for any and all purposes except for those granted to the state alternative energy source 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.

H. To protest the board leasing of a state tract for an AESL, the protesting party shall submit a formal letter of protest to the board at least seven days prior to the scheduled board meeting to consider the AESL on the tract (generally, the lease sale date). The letter of protest shall reference the appropriate tract number, parish, and board 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.

I. 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 OMR. 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 $40 for providing proof of publication for a tract.

J. Within 20 days of the advertisement of the state tract, any person or entity may submit written comments to the board, through OMR, at the following address: Department of Natural Resources, Office of Mineral Resources, Attn: Leasing Section, P.O. Box 2827, Baton Rouge, LA 70821-2827.

La. Admin. Code tit. 43, § I-1134

Promulgated by Department of Natural Resources, Office of Mineral Resources, LR 38:132 (January 2012).

AUTHORITY NOTE: Promulgated in accordance with R.S. 30:124.