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Regular Session, 2010
SENATE BILL NO. 183
BY SENATOR N. GAUTREAUX
ENERGY DEVELOPMENT. Authorizes the State Mineral and Energy Board to lease state
lands for the development or production of alternate energy resources. (8/15/10)
AN ACT1
To amend and reenact R.S. 30:124, relative to the State Mineral and Energy Board; to2
provide for alternate energy resources; to authorize the State Mineral and Energy3
Board to lease state lands for the exploration, development, and production of energy4
from alternative energy resources; to provide definitions, terms, and conditions; to5
provide for rulemaking authority; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 30:124 is hereby amended and reenacted to read as follows: 8
ยง124. Board may lease public lands; fee9
A. The legislature finds that the state, through the Department of10
Natural Resources, should promote the generation and use of alternative energy11
sources, including but not limited to wind energy, geothermal energy, solar12
energy and hydrokinetic energy, throughout the state to ensure the viability of13
the state's natural resources, to provide a continuing utility-scale clean energy14
source for the citizens and businesses of Louisiana, to support economic15
development through job retention and creation in Louisiana, and to promote16
a clean environment.17 SB NO. 183
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B. The State Mineral and Energy Board , hereinafter referred to as the1
"board", has authority to lease for the development and production of minerals, oil,2
and gas, or alternative energy sources, any lands belonging to the state, or the title3
to which is in the public, including road beds, water bottoms, vacant state lands, and4
lands adjudicated to the state at tax sale. The board shall adopt rules and5
regulations in accordance with the Administrative Procedure Act to implement6
the provisions of this Subpart.7
C. As used in this Section, "alternative energy sources" means energy8
sources other than oil, gas, and other liquid, solid or gaseous minerals. It shall9
include, but not be limited to, wind energy, geothermal energy, solar energy and10
hydrokinetic energy. It shall not include the cultivation or harvesting of11
biomass fuels or the use of state land or water bottoms for facilities which utilize12
biomass fuel to produce energy.13
D. (1) No lease shall be granted for hydrokinetic energy development14
that is inconsistent with the terms of a preliminary permit, license, exemption,15
or other authorization issued by the Federal Energy Regulatory Commission16
pursuant to its authority under the Federal Power Act, 16 U.S.C. Sec 791a, et17
seq.18
(2) No lease affecting the following lands shall be granted for alternative19
energy sources development on such lands without prior written approval of a20
port or terminal district: (a) lands held in title by the port or terminal district21
or held by lease or servitude by such port or terminal district, or (b) public22
navigable waters that flow through any lands within the jurisdiction of a port23
or terminal district. Such approval shall not be unreasonably withheld unless24
such lease would be detrimental to the needs of commerce and navigation. No25
port or terminal district shall receive compensation for their approval.26
E. The mineral board is further authorized to collect a fee for such leasing27
in the amount of ten percent of the total cash bonus paid at the lease sale. The fee28
shall be in addition to the total cash bonus paid.29 SB NO. 183
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The original instrument was prepared by J. W. Wiley. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Christopher D. Adams.
DIGEST
N. Gautreaux (SB 183)
Present law authorizes the State Mineral and Energy Board ("board") to lease for the
development and production of minerals, oil, and gas, 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.
Proposed law retains present law and authorizes the board to lease for the development and
production of "alternative energy sources".
Proposed law authorizes the board to adopt rules and regulations in accordance with the
APA.
Proposed law defines "alternative energy sources" as energy sources other than oil, gas, and
other liquid, solid or gaseous minerals. It will include, but not limited to, wind energy,
geothermal energy, solar energy and hydrokinetic energy. It does 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.
Proposed law further provides that no lease shall be granted for hydrokinetic energy
development that is inconsistent with the terms of a permit, license, exemption, or other
authorization issued by the Federal Energy Regulatory Commission. No lease will be
granted for alternative energy sources development on lands or public navigable waterways
without prior written approval of a port or terminal, and the approval of the lease will not
be unreasonably withheld unless the lease will be detrimental to the needs of commerce and
navigation. Prohibits a port or terminal district from receiving compensation for its
approval.
Effective August 15, 2010.
(Amends R.S. 30:124)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Natural Resources to
the original bill.
1. Adds legislative findings.
2. Adds that no lease shall be granted for hydrokinetic energy development that
is inconsistent with a permit, license, or exemption issued by the Federal
Energy Regulatory Commission.
Senate Floor Amendments to engrossed bill.
1. Requires a port or terminal district to give prior approval for the lease.
2. Prohibits unreasonable withholding of lease approval. SB NO. 183
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3. Prohibits a port or terminal district from receiving compensation for lease
approval.
4. Legislative Bureau technical amendments.