La. Admin. Code tit. 43 § I-1029

Current through Register Vol. 50, No. 11, November 20, 2024

Section I-1029 - State Wind Lease Operations

A. The state wind lessee and state wind lease operator shall schedule a pre-operations meeting with and submit an operations packet to the Office of Mineral Resources at least 30 days prior to commencement of construction. The operations packet shall contain the following items:

1. notice of beginning of wind lease operations form;

2. proof of general liability insurance for the leased premises in the amount of at least $1,000,000 issued by an insurer to whom A.M. Best Company has given not less than an A rating, specifically covering all damages, and name as insured the state of Louisiana and its departments, agencies and boards:

a. subsequent to the commencement of construction, an updated proof of general liability insurance is required to be submitted by January 31 of each year. Failure to submit updated proof of general liability insurance may cause the Office of Mineral Resources to levy liquidated damages of $100 per day until such proof is received;

3. financial security in a form acceptable to the State Mineral Board. The financial security amount for individual turbines shall be, at a minimum, $150,000 per turbine for turbines in one location. Blanket financial security for lessees and operators with wind leases in more than one area shall be calculated at a minimum of $150,000 per turbine divided by the number of different wind farm locations. Compliance with this financial security requirement shall be provided by any of the following or a combination thereof:

a. a certificate of deposit issued in sole favor of the Louisiana Department of Natural Resources in a form prescribed by the board from a financial institution acceptable to the board; or

b. a performance bond in sole favor of the Louisiana Department of Natural Resources in a form prescribed by the board issued by an appropriate institution authorized to do business in the state of Louisiana; or

c. a letter of credit in sole favor of the Louisiana Department of Natural Resources in a form prescribed by the board issued by a financial institution acceptable to the board;

4. an updated plan of operations that includes all the items set forth in §1017. C.3 a-I;

5. any updated environmental impact documentation supporting §1011. D 8;

6. an updated list of project participants as set forth in §1017. C 5;

7. any other information and documentation required by the Office of Mineral Resources.

B. At the expiration of the primary term, production of wind generated electric power shall be required to maintain the lease in force. If the lessee is producing wind generated electric power, the lease shall continue in force so long as production of wind generated electric power continues without lapse of more than 180 days. Any lapse in production of wind generated electric power greater than 180 days shall result in automatic termination of the lease.

C. On or before five years after the lessee commences the production of wind generated electric power on the lease, or five years from the end of the primary term, whichever is sooner (said date being the "Undeveloped Acreage Release Date"), the lessee shall release undeveloped acreage pursuant to the requirements of this Subpart, as well as those set forth in §1027

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

a. approximately 50 feet from the closest point on which a meteorological tower, road, guy wire, or transmission line is located;

b. approximately 150 feet from the perimeter of any substation; and

c. approximately 400 feet from the axis of horizontal rotation of any turbine.

2. Lessee shall contain the whole of the retained acreage, including the buffer acreage within the boundaries set forth in Subparagraphs 1.a-c, within a single contiguous block of acreage.

D. Any and all wind data collected during the primary term of the lease by the state wind lessee shall be released to public record at the end of the primary term.

E. The Office of Mineral Resources may require periodic reporting.

La. Admin. Code tit. 43, § I-1029

Promulgated by the Department of Natural Resources, Office of Mineral Resources, LR 34:267 (February 2008).

AUTHORITY NOTE: Promulgated in accordance with R.S. 41:1734.