La. Admin. Code tit. 43 § I-1135

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

Section I-1135 - Submission of Bids on Tracts Offered for an Alternative Energy Source Lease

A. Interested registered parties shall submit sealed bids on the entirety of the state tract nominated and advertised as offered for an AESL to the board, through OMR, in the form it requires by the bid submission deadline (no later than 12 p.m. Central Time on the Tuesday immediately prior to the Wednesday board lease sale at which the tracts are offered, unless otherwise noticed). Each bid shall be accompanied by any other documentation and/or information required.

B. Only those bidders who are registered prospective leaseholders with OMR as set forth under § 1130 of this Chapter shall be allowed to bid on tracts for the purpose of obtaining an AESL from the state.

C. A party interested in bidding on a state tract for an AESL shall prepare a bid package that includes the items listed below. The bidder shall place all of the items required to be included in the bid package in an envelope, completely seal the envelope, write the official tract number on the outside of the envelope, and notate the following on the outside of the envelope: "Sealed Bid for State AESL is Enclosed". This envelope should include:

1. an official bid form available from OMR. Provide one original signed paper copy only;

2. a summary of experience including, at a minimum, the number of years of the bidding party's experience in the development and production of the specified alternative energy source and project descriptions. Experience with the specific AESP involving government lands and water bottoms shall be specified;

3. the proposed bid package shall set forth the following:

a. a summary of the overall business plan of the proposed alternative energy source development, including size of operation, development costs, marketing of the project, market prices, and status of a power purchase agreement;

b. a summary of the overall specified AESP, including status of site control (progress with leasing and/or permitting other properties within the entire AESP boundaries) and application process with the transmission provider, as well as a time frame for the project to become operational;

c. a summary of the alternative energy source development proposed on the state lands or water bottoms sought to be leased, including a plat, the layout of the specified alternative energy source power and transmission facilities, proposed alternative energy source equipment information (size, location, number, type and depth of installation, turbine make, and nameplate power production capacity), placement information of equipment, and whether the alternative energy source will be affixed to existing platforms or state owned structures or will there be a necessity to construct new platforms, selection criteria used, and supporting infrastructure;

d. the status and timeline of the major milestones in the AESP development, production, and decommissioning;

e. the name of the company that will operate the AESP and its relationship, if any, to the applicant;

f. a summary of the expected revenue and cash flow for the AESP on state lands or water bottoms, including a detailed list of assumptions;

g. the measures proposed to reduce risk to the state, including, but not limited to, a summary of compliance with any and all standards established by state, national and international agencies, institutes, commissions or associations and any other entity responsible for establishing the alternative energy source industry standards. Standards for the alternative energy source development/operations include, but are not limited to, turbine safety and design, power performance, noise/acoustic measurement, mechanical load measurements, blade structural testing, power quality, and siting;

h. a summary of how the AESP will ensure the viability of the state's natural resources, including, but not limited to, fish, wildlife and botanical resources, provide a continuing energy source for the citizens and businesses of Louisiana, promote economic development through job retention and creation in the state, and promote a clean and lasting environment;

i. a summary of how the use of state lands or water bottoms for the development and production of the alternative energy source will be coordinated with other users of state lands or water bottoms, including the operation of ports, harbors, or terminal districts, shipping and recreational interests, dredging operations, and navigation safety;

j. a summary of contingency plans and emergency shut down procedures to be followed, including the circumstances to initiate such procedures, in the event of danger or damage to life, water craft or facilities as a result of collision, dredging, anchorage, search and rescue operations, or unforeseen events;

k. a summary of the procedure for installation, recovery and repair of damaged turbines and equipment with minimal impact to navigation, shipping and recreational interests;

l. any other additional information required pursuant to §1121 of this Chapter;

4. a comprehensive summary of all environmental issues including, but not limited to, the environmental impact resulting from the construction, placement, operation and removal of the alternative energy source's facilities and equipment necessary for the development and production of the alternative energy source, and the steps proposed to minimize the environmental impact, along with any supporting environmental impact documentation.;

5. a list of project participants who are or will be participating in the planning, development, construction, operation, maintenance, remediation, and/or decommission phases of the proposed project, and a brief description of each participant's role;

6. a summary of project financing which shall include, at a minimum, identification of the sources of financing and a discussion of financing;

7. a list of governmental entities, including each federal, state, parish and local governmental entity having jurisdiction in the nomination area, including the name of the contact person, his/her title, office address, telephone and fax numbers, and email address, as well as the type of legal authority, if any, acquired or to be acquired from the governmental entity;

8. a summary of all study results, including copies of the complete final study reports and all study data acquired by the applicant, in a format agreeable to OMR, for all studies conducted by the applicant, for the area described in the lease application;

9. a summary detailing the project's impact and mitigation required to protect the historical and archaeological resources of the area.

D. The applicant shall deliver the sealed bid package to the board, through OMR, by either hand-delivery or traceable delivery service. The sealed bid package must be physically in the possession of appropriate OMR personnel by the bid submission deadline (generally no later than 12 p.m. Central Time on the Tuesday immediately prior to the Wednesday board lease sale at which the tracts are offered unless otherwise noticed).

E. Once a bid is submitted, it may not be withdrawn or cancelled. The board is not obligated to accept a bid. Bid acceptance or rejection is at the sole discretion of the board who reserves the right to reject any and all bids or to grant an AESL on any portion of the state tract advertised and to withdraw the remainder of the tract.

F. 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 board assigning equal interests to each bidder.

G. When two or more parties submit a joint bid, the parties shall designate on the official bid form, as well as on a separate form, the name of the principal AESL lessee, who shall be authorized to act on behalf of all co-lessees, including, but not limited to, the authority to release. The principal AESL lessee shall be stipulated in any lease that may be awarded.

H. A bid for an AESL shall exclude all rights not specifically granted in any AESL subsequently awarded.

La. Admin. Code tit. 43, § I-1135

Promulgated by Department of Natural Resources, Office of Mineral Resources, LR 38:1333 (January 2012).

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