La. Admin. Code tit. 43 § I-1140

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

Section I-1140 - Alternative Energy Source Lease Operations

A. An AESL on state lands or water bottoms shall have a maximum initial term of five years and continue thereafter, as long as the alternative energy source operations are being conducted without interruption and electric power is being generated and used in significant quantities for the commercial transmission of electric energy and applicable fees are paid to the board, through OMR, in a timely manner.

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

C. Notwithstanding any provisions to the contrary in any 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 AESL awarded or be otherwise responsible to the lessee.

D. Lessor accepts 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 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.

E. Prior to commencing construction, each lessee and AESL operator shall obtain a general liability insurance policy in a form acceptable to the board as set forth in §1154 of this Chapter.

F. Prior to commencing construction, each lessee and AESL operator shall provide financial security in a form acceptable to the board as set forth in §1153 of this Chapter.

G. Lessee hereby agrees that in exercising the rights granted under the AESL, it will comply with and be subject to all current applicable laws and regulations, including, but not limited to, environmental laws, ports and waterways laws, energy laws, and those validly adopted or issued, by the U.S. and its agencies, by the state of Louisiana and its agencies, and by any applicable local or parish government. lessee further agrees that it will comply with all minimum water quality standards validly adopted by governmental authorities with respect to pollution, noxious chemicals, and waste being introduced into affected water areas.

H. 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 state agency having control over the property from restricting access to public waterways if the secretary determines that a danger to the public welfare exists. This provision shall not apply in cases involving title disputes.

I. The alternative energy source lessee operator shall schedule a pre-operations meeting with and submit an operations package to the board, through OMR, at least 30 days prior to commencement of construction. The operation package shall contain the following additional items:

1. notice of beginning of AESL operations;

2. proof of financial assurance as set forth in Subpart D of this Chapter;

3. an updated list of project participants;

4. any other information or documentation required by the board, through OMR.

J. At the expiration of the primary term, production of alternative energy source electric power shall be required to maintain the lease in force. If the lessee is producing alternative energy source generated electric power, the lease shall continue in force as long as production of generated electric power continues without lapse of more than 180 days, unless the suspension is due to a suspension order. Any lapse in production of generated electric power greater than 180 days may, at the board's discretion, result in the termination of the lease.

K. Lessee shall survey the exact locations of any physical improvements that it has made upon the property including, but not limited to, turbines and mounting structures, controller boxes, foundations, roads, overhead and underground electrical wires, communication lines, poles and cross members, and substations and transmission facilities, and shall further show the areas of land containing the improvements on the survey.

L. Any and all alternative energy source data collected during the term of the lease by the alternative energy source lessee shall be provided to the board, through OMR, every six months. All information maps, plots, and other data provided to the board, through OMR, shall be deemed public record except where the record is designated as confidential by law. Any record determined to be confidential shall not be released to any agency or entity absent a valid court order from a court of competent jurisdiction.

M. Periodic reporting may be required.

La. Admin. Code tit. 43, § I-1140

Promulgated by Department of Natural Resources, Office of Mineral Resources, LR 38:135 (January 2012).

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