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Announcements and Open Procurements – Office of Renewable Energy

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Address:
310 Old Santa Fe Trail,
Santa Fe NM 87501

Phone:
505-827-5760

Bid Applications for Wind and Solar Energy Projects on State Trust Land

The State Land Office is committed to advancing renewable energy.  In this section, you will find information on how to bid on renewable energy projects. After reviewing the details of the proposed projects, please submit your name and contact information below to receive the entire bid package.
WIND FARM - BUSINESS LEASE #2571 COLFAX AND UNION COUNTIES

Background: The New Mexico Commissioner of Public Lands (the “Commissioner”) will accept sealed bids seeking the highest and best bid for a long term commercial business lease, BL-2571 for renewable energy (wind power) facility, which must conform to any and all restrictions and reservations in the Lease, and all laws including but not limited to 19.2.22 NMAC. BL-2571 is for 7,636.42 ± acres of state trust lands located in Colfax and Union Counties New Mexico. This bid information sheet is part of a bid packet, and describes the state trust lands offered for lease under BL-2571 and some of the principal terms of the proposed Lease. It also describes the qualifications required and the process by which qualified persons or companies may bid on the Lease. The entire bid packet should be reviewed before submitting a bid.

DESCRIPTION:

Being 7,636.42 + acres located in a state of New Mexico N.M.P.M., Colfax and Union Counties, New Mexico, being more particularly described as follows:

Township 23 North, Range 27 East, Section 1: S2-320 acres ±;

Township 23 North, Range 27 East, Section 3: S2-320 acres ±;

Township 23 North, Range 27 East, Section 12: All-640 acres ±;

Township 23 North, Range 27 East, Section 13: N2-320 acres ±;

Township 23 North, Range 27 East, Section 2: Lot 1 (41.98 acres), Lot 2 (42.32 acres), Lot 3 (42.68 acres), Lot 4 (43.02 acres), S2N2, S2-650 acres ±;

Township 23 North, Range 28 East, Section 7: Lot 1 (38.39 acres), Lot 2 (38.76 acres), Lot 3 (39.14 acres), Lot 4 (39.51 acres), NE4, E2W2, N2SE4, SW4SE4, Pt. SE4SE4-629.50 acres ±;

Township 23 North, Range 28 East, Section 8: N2, N2SW4, Pt. S2SW4, SE4-625.447 acres ±;

Township 23 North, Range 28 East, Section 17: NE4, Pt. N2NW4, S2NW4, S2-617.163 acres ±;

Township 23 North, Range 28 East, Section 18: Lot 2 (39.74 acres), Lot 4 (39.78 acres), Pt. NE4NE4, NW4NE4, S2NE4, E2W2, SE4-556.909 acres ±;

Township 24 North, Range 27 East, Section 22: Pt. NE4NE4, NW4NE4, S2NE4, N2NW4, SE4NW4, S2-599 acres ±;

Township 24 North, Range 27 East, Section 23: SW4NE4, S2NW4-120 acres ±;

Township 24 North, Range 27 East, Section 27: All-640 acres ±;

Township 24 North, Range 27 East, Section 36: All-640 acres ±;

Township 24 North, Range 28 East, Section 31: Lot 3 (39.05 acres), Lot 4 (39.35 acres), E2SW4, SE4-318.40 acres ±;

Township 24 North, Range 28 East, Section 32: All-640 acres ±.

 

GENERAL LEASE TERMS:  The Land is proposed to be leased pursuant to State Land Office Rule 9 (19.2.9 NMAC) for the purpose of operating a renewable energy (wind power) facility, and is subject to the terms and conditions authorized in the Lease. The term of the Lease is for fifty-five (55) years.  Per Section 4.1.1 of the Lease, Lessee shall pay to Lessor as rent for the land and for the rights and privileges granted in the lease.

Initial Phase Rent of two dollars ($2.00) per acre for the first (1) year.  Lessee shall pay Lessor rent during the initial phase according to the schedule, on a per-acre per-lease year basis.  Refer to Section 4.1.1 of the Lease.

 

YEAR PER ACRE PAYMENT
1 $2.00
2 $2.25
3 $2.50
4 $2.75
5 $3.00

 

Operations Phase Base Rent begins when the Wind Power Facility starts generating energy.  The rent for operations phase base years’ one (1) thru nine (9) will be $3.00 per acre per year or four thousand dollars per megawatt (MW) of installed capacity, whichever is greater. Additional Operation Base Rent adjustments are referenced in Section 4.1.2.1 of the Lease (Exhibit 3).

 

Operation Phase Years: Minimum Operations Phase Rent:
Years 1-9 The greater of $4,000/MW Installed Capacity, or $3.00 /acre of Leased Premises / Year
Years 10-18 The greater of $4,000/MW Installed Capacity, or $6.00 /acre of Leased Premises /Year
Years 19-27 The greater of $4,000/MW Installed Capacity, or $9.00 /acre of Leased Premises /Year
Years 28-36 The greater of $4,000/MW Installed Capacity, or $10.50 /acre of Leased Premises /Year
Years 37+ The greater of $4,000/MW Installed Capacity, or $12.00 /acre of Leased Premises /Year

 

Percent Rent: Within thirty (30) days after the first anniversary of the Operations Date, and every anniversary thereof up to and including the anniversary immediately preceding the Decommissioning Phase, Lessee shall pay Percent Rent of 4.0% of Gross Revenues for the previous 12-month period to the extent such Percent Rent exceeds the Minimum Operations Phase Rent Payment paid for such year.

Decommissioning Phase Rent: Lessee shall pay Lessor one-time Decommissioning Phase Rent of thee dollars ($3.00) per acre, payable upon commencement of decommissioning activities on the land as described in Section 4.1.3 of this Lease.

Ground Disturbance Fee: Lessee shall pay a one-time ground disturbance fee of Ten Thousand Dollars ($10,000).  The Ground Disturbance Fee must be paid to Lessor prior to the commencement of construction.

Decommissioning and Reclamation Bond: In accordance with the Lease, Lessee shall establish and shall keep in full force and effect during the Term a bond, an irrevocable letter of credit, an irrevocable guarantee from an entity with a net worth of at least One Hundred Million dollars ($100,000,000.00), or other security in a form acceptable to the Commissioner (collectively “Surety”) in an amount sufficient to pay the Restoration Costs which shall be based on an estimate performed by a qualified independent engineer licensed in New Mexico. Refer to Section 5.6 of the Lease for date of Surety posting, percentage of decommissioning costs posted and type of decommissioning Surety (i.e. irrevocable letter of credit, or bond, or other form of Surety as acceptable to Lessor).

Deposits:  Only qualified bidders may submit a sealed bid. In order to qualify to submit a sealed bid, prospective bidders must submit the following:  a) a completed application meeting the statement of minimum qualifications- Exhibit 5, b) an application fee of five hundred dollar ($500.00), c) a transaction deposit (estimated advertising) in the amount of ten thousand dollars ($10,000.00); and d) the first year’s rent in the amount of fifteen thousand two hundred seventy two dollars and eighty four cents ($15,272.84).  A bidder shall submit one- time payment for the Total Qualification Deposit in the amount of twenty five thousand seven hundred seventy two dollars and eighty four cents ($25,772.84), payable to “Commissioner of Public Lands.”

Application and Deposit Submittal:  The application (Exhibit 5), application fee and    qualification deposit must be received at the  New Mexico State Land Office, PO Box     1148, Santa Fe, NM, 87504 or 310 Old Santa Fe Trail, Santa  Fe, NM, 87501, Attn:     Commissioner of Public Lands, no later than 3:00 p.m. on Tuesday November 19, 2019.

Sealed Bid Process: The auction will be in the form of a sealed bid. Only bidders who have submitted a complete application and met the qualification requirements may submit a sealed bid. The minimum bonus bid amount is one hundred thousand dollars ($100,000.00) with additional amounts in increments of ten thousand dollars ($10,000.00) each. The bonus bid amount should be entered on the bid form and sealed in a separate envelope. The envelope containing the sealed bid must be plainly marked “BL-2571 AUCTION – SEALED BID” on the outside of the envelope and must show the date and time the bid is scheduled to be opened, as set forth below. Sealed bids may be submitted by mail, express delivery, or in person to the Commissioner of Public Lands and must be received by 3:00 p.m. on November 21, 2019.  All bids submitted will be opened at the date, time and place of the auction as set forth below.

Date:         Friday, November 22, 2019

Time:         9:30 am

Place:        New Mexico State Land Office (Morgan Hall)

310 Old Santa Fe Trail, Santa Fe, NM 87501

If you are interested in recieving the complete bid package for this wind farm, please enter your contact information below. Once you have submitted your contact information, you will be redirected to the Commercial Business Lease (BL-2571) Wind Package.  For more information, please contact Jerry Maher at 505-827-4095.

If you are interested in recieving the complete bid package, please enter your contact information here. Once you have submitted your contact information, you will be redirected to the Commercial Business Lease (BL-2571) Wind Package.  For more information, please contact Jerry Maher at 505-827-4095.

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