§124. Board may lease public lands; fee
A.The legislature finds that the state, through the Department of Conservation and
Energy, should promote the generation and use of alternative energy sources, including but
not limited to wind energy, geothermal energy, solar energy, and hydrokinetic energy,
throughout the state to ensure the viability of the state's natural resources, to provide a
continuing utility-scale clean energy source for the citizens and businesses of Louisiana, to
support economic development through job retention and creation in Louisiana, and to
promote a clean environment.
B.The State Mineral and Energy Board, hereinafter referred to as the "board", has
authority to lease any lands belonging to the state, or the title to which is in the public,
including road beds, wa
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§124. Board may lease public lands; fee
A. The legislature finds that the state, through the Department of Conservation and
Energy, should promote the generation and use of alternative energy sources, including but
not limited to wind energy, geothermal energy, solar energy, and hydrokinetic energy,
throughout the state to ensure the viability of the state's natural resources, to provide a
continuing utility-scale clean energy source for the citizens and businesses of Louisiana, to
support economic development through job retention and creation in Louisiana, and to
promote a clean environment.
B. The State Mineral and Energy Board, hereinafter referred to as the "board", has
authority to lease any lands belonging to the state, or the title to which is in the public,
including road beds, water bottoms, vacant state lands, and lands adjudicated to the state at
tax sale, for the development and production of minerals, oil, gas, or alternative energy
sources and for the purposes set forth in R.S. 30:148.2. The board, in consultation with the
Department of Transportation and Development, shall adopt rules and regulations in
accordance with the Administrative Procedure Act to implement the provisions of this
Subpart.
C. As used in this Section, "alternative energy sources" means energy sources other
than oil, gas, and other liquid, solid, or gaseous minerals. It shall include, but not be limited
to, wind energy, geothermal energy, solar energy, and hydrokinetic energy. It shall not
include the cultivation or harvesting of biomass fuels or the use of state land or water
bottoms for facilities which utilize biomass fuel to produce energy.
D. No lease shall be granted for hydrokinetic energy development that is inconsistent
with the terms of a preliminary permit, license, exemption, or other authorization issued by
the Federal Energy Regulatory Commission pursuant to its authority under the Federal Power
Act, 16 U.S.C. 791a, et seq.
E.(1)(a) No lease affecting the following lands shall be granted for alternative energy
sources development on such lands without prior written approval of a port; harbor and
terminal district; or port, harbor, and terminal district;
(i) Lands held in title by such port or district or held by lease or servitude by such
port or district.
(ii) Public navigable waters that flow through any lands within the jurisdiction of
such port or district. Approval pursuant to this Item shall not be unreasonably withheld
unless such lease would be detrimental to the needs of commerce and navigation.
(b) No such port or district shall receive compensation for their approval; however,
such port or district shall receive reimbursement from the lease applicant for actual expenses
incurred for any studies or reports conducted in conjunction with their approval.
(2) After the port; harbor and terminal district; or port, harbor, and terminal district
decides whether or not to grant approval, the board shall send a notice by certified mail to
the lease applicant for alternative energy sources development. The notice shall include the
following:
(a) The decision of such port or district to provide either prior written approval of
the lease or to deny approval of such lease.
(b) If such port or district does not grant prior written approval, notice that the lease
applicant has sixty days from receipt of the notice to request an administrative hearing with
the division of administrative law pursuant to Chapter 13-B of Title 49 of the Louisiana
Revised Statutes of 1950. The request for an administrative hearing shall be filed with the
division of administrative law, with copies mailed to the board and such port or district.
(3) The port; harbor and terminal district; or port, harbor, and terminal district which
does not grant prior written approval of a lease shall have the burden of proof, at the
administrative hearing, that the lease is detrimental to the needs of commerce and navigation.
(4) The port; harbor and terminal district; or port, harbor, and terminal district shall
contract with the division of administrative law to conduct the hearing. The administrative
law judge may, in his discretion, assess the costs of the administrative hearing and reasonable
attorney fees of the prevailing party against the losing party.
(5) Notwithstanding any provision of the law to the contrary, the lease applicant or
the port; harbor and terminal district; or port, harbor, and terminal district may petition the
district court for the parish of East Baton Rouge for judicial review of any final decision or
order of the administrative law judge.
F. The board is further authorized to collect a fee for such leasing in the amount of
ten percent of the total cash bonus paid at the lease sale. The fee shall be in addition to the
total cash bonus paid.
G. Payments due to the state pursuant to leases under this Section shall be considered
a tax for the purposes of collection under 11 U.S.C. 503(b)(1)(B) and not rent.