La. Admin. Code tit. 43 § I-1141

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

Section I-1141 - Transfer of Interest in or Assignment of an Alternative Energy Source Lease

A. Prior to execution and recordation of a transfer of interest in or assignment of an AESL, a prospective transferee or assignee of an AESL shall schedule a pre-transfer meeting with and submit a transfer package to the board, through OMR, no later than the board's regular meeting for the month prior to the board's regular meeting at which the item is to appear on the board's docket for approval.

B. No transfer or assignment in relation to any AESL shall be valid unless approved by the board prior to the transfer or assignment. Failure to obtain board approval of any transfer or assignment of an AESL prior to transfer or assignment shall subject the transferor or assignor and the transferee or assignee, jointly, severally and in solido, to liquidated damages of $100 per day, beginning on the first day following the execution of the transfer or assignment.

C. Transfers or assignments shall not be granted to prospective leaseholders that are not currently registered with OMR as set forth under §1130 of this Chapter.

D. The transfer package shall contain the following items:

1. an official letter from FERC approving the transfer of the federal energy license, if required;

2. two original, unexecuted, unrecorded transfer or assignment instruments designating the operator and the principal alternative energy source lessee authorized to act on behalf of all co-lessees with proof of designation attached.;

3. a Designation of Principal State Alternative Energy Source Lessee and Operator Form completed by each prospective leaseholder;

4. a separate Statement of Conveyance of Alternative Energy Source Lease Form completed for each AESL impacted by the transfer. Each form shall reflect only the gross working interest in the lease existing before and after the conveyance (no net revenue interests shall be considered or reported);

5. a proposed plan of operations that includes all items set forth in §1135. C.3.a -l. of this Chapter;

6. any environmental impact documentation supplementing and updating §1132. A.5 of this Chapter;

7. 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 AESP, and a brief description of each project participant's role;

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

9. a list of governmental entities, including each federal, state, parish and local governmental entity that has jurisdiction in the leased area and for each, the contact person's name, 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;

10. if AESL operations have commenced, proof of general liability insurance held by the transferee/assignee in a form acceptable to the board as set forth in §1154 of this Chapter and proof of financial assurance from the transferee/assignee in a form acceptable to the board as set forth in §1153 of this Chapter;

11. a docket fee in the amount of $100 made payable to the "Office of Mineral Resources" to cover the cost of preparing and docketing transfers or assignments of an AESL. A personal or business check shall be acceptable;

12. any other information and documentation required.

E. An assignment or other transfer made by lessee which has been approved by the board does not relieve the original lessee, or any of its successors or assigns, of any and all obligations, duties, or responsibilities incurred under the terms of the AESL.

F. No assignment or transfer of an AESL shall be valid unless a provision has been made by the assignor or transferor and assignee or transferee to have the financial security and insurance set forth in this Chapter maintained in full force and effect following the assignment or other transfer into the authority of the assignee. Written evidence of the maintenance of the required financial security and insurance shall be presented together with the assignment or other transfer at the same time as submitted for the board's approval. The same shall hold true for each and every successive assignment or transfer of an interest in the AESL.

G. Upon board approval of the transfer or assignment, the transferor/assignor or transferee/assignee shall record the approved transfer instrument and the approval resolution in the appropriate parish(es) per the approval resolution and shall furnish the board, through OMR, with an original certified copy of the recorded instrument from the respective clerk of court office(s).

H. Upon board approval, the transfer or assignment instrument shall be executed, in authentic form, by both transferor and transferee/assignor and assignee [and spouse(s), if appropriate]. As an alternative, the transferee/assignee [and spouse(s), if appropriate] may execute an acceptance by assignee form, executed in authentic form, with a copy attached to each of the transfer instruments.

La. Admin. Code tit. 43, § I-1141

Promulgated by Department of Natural Resources, Office of Mineral Resources, LR 38:136 (January 2012).

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