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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

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

The State Land Office is committed to advancing renewable energy projects so that New Mexico is at the cornerstone of our clean energy future. In this section, you will find information on how to bid on renewable energy projects.

 

SOLAR ENERGY LEASE ES-0078 - Bernalillo County

I. GENERAL INFORMATION.

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, ES-0078 (the
“Lease”), for a renewable energy (solar power) facility, which must conform to any and all
restrictions and reservations in the Lease, and all laws including but not limited to 19.2.9.1-
19.2.9.21 NMAC. ES-0078 is for 734.47 ± acres of state trust lands located in Bernalillo County,
New Mexico. The Lease will permit a renewable energy (solar power) facility, subject to all
environmental requirements and restrictions and all other restrictions and reservations of record.
This bid information sheet is part of a bid packet, and describes the state trust lands offered for
lease under ES-0078 and some of the principal terms of this proposed Lease. It also describes the
qualifications required and the process by which qualified persons or entities may bid on the
Lease. The entire bid packet should be reviewed before submitting a bid.

II. DESCRIPTION OF THE LAND OFFERED FOR LEASE.

The land is offered as a single parcel only, and is described as follows (the “Land”):Township 08 North, Range 03 East, Section 02: Lots 1, 2, 3, 4, 5, 6, 7, 8, S2N2 –385.87 acres ±;
Township 08 North, Range 03 East, Section 03: Lots 1, 2, 3, 4, 5, 6, 7, 8, S2N2 –348.60 acres ±;
Total: 734.47 Acres
A. Location and Access: The property is located in the vicinity of Albuquerque in Bernalillo
County, New Mexico.
B. Zoning: Planned Community Zone District – Mesa del Sol.
C. Utilities: None.
D. Known Encumbrances: See Bid Packet Exhibit 6: List of Encumbrances on the State
Trust Lands.
E. Inspection of the Land: Permission from the Commissioner is required to access and
inspect the Land. Please contact the New Mexico State Land Office (“NMSLO”), Office
of Renewable Energy for information on obtaining a permit at (505) 827-5724 or visit the
public website www.nmstatelands.org.
Exhibit 1
F. Bidders Responsible for Due Diligence: The Land is offered “AS IS” and will be leased
as a single tract only. Bids to lease less than the entire Land will not be considered.
Prospective bidders are encouraged to inspect the records for the Land at the NMSLO
and the Lincoln County Clerk’s Office, and to apply to the Commissioner for a permit to
physically inspect the Land. The Commissioner makes no representation or warranty,
express or implied, written or oral, with respect to the condition of the Land, or its fitness,
suitability, or availability for any particular use.
G. Surrounding Area: Rangeland.

III. GENERAL LEASE TERMS.
This section provides an outline of rent requirements and certain other terms in the Lease; it is
not a comprehensive description of the terms of the Lease. Interested parties should review the
entire bid packet, including the draft Lease itself (attached as Exhibit 3).
A. The Land will be leased, if at all, pursuant to the terms of the Long-Term Business Lease
ES-0078, and applicable laws and regulations. The Lease will permit a renewable energy
(solar power) facility, which must conform to any and all restrictions and reservations in
the Lease. The term of the Lease is for thirty- five (35) years with an option to renew for
five (5) additional years.
B. Lessee [the person or entity to whom the Lease is issued, if at all] shall pay to
Commissioner as rent for the Land and for the rights and privileges granted hereunder
according to the following schedule (per Section 4.1 of the Exhibit 3 Long Term Lease
ES-0078).
Initial Phase Rent of seven dollars ($7.00) 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 Exhibit 3 Long Term Lease ES-0078.

YEAR PER ACRE PAYMENT
1 $7.00
2 $7.00
3 $8.00
4 $9.00
5 $10.00
Operations Phase Base Rent begins when the Solar Power Facility starts generating
energy. The rent for operations phase base year one (1) will be ten dollars ($10.00) per
acre per year or three thousand dollars ($3,000.00) per megawatt (MW) of installed
capacity, whichever is greater. Additional Operation Base Rent adjustments are
referenced in Section 4.1.2.1 of the Exhibit 3 Long Term Lease ES-0078.

Operation
Phase Years:
Minimum Operations Phase Rent:
Year 1 The greater of $3,000/MW Installed Capacity, or
$10.00 /acre of Leased Premises / Year
Years 2-10 The greater of $3,000/MW Installed Capacity, or
$13.00 /acre of Leased Premises / Year
Years 11-20 The greater of $3,000/MW Installed Capacity, or
$16.00 /acre of Leased Premises / Year
Years 21-35 The greater of $3,000/MW Installed Capacity, or
$18.00 /acre of Leased Premises / Year
Renewal
Term (if any)
The greater of $3,000/MW Installed Capacity, or
$20.00 /acre of Leased Premises / Year
Percent Rent. From the Operations Date up to and including the Lease Year preceding
the Decommissioning Phase, Lessee shall pay Percent Rent of Gross Revenues for each
Lease Year to the extent such Percent Rent exceeds the Operations Phase Base Rent
Payment paid for such Lease Year. Percent Rent shall be paid annually within forty-five
(45) days after the end of each Lease Year during the Operations Phase. Lessee shall
submit a Production and Gross Revenues statement annually in a form acceptable to
Lessor within forty five (45) days after the end of each Lease Year during the Operations
Phase, showing how the Percent Rent payment was calculated, or why no Percent Rent is
due. Percent Rent shall be due as detailed in Section 4.1.2.2 of Exhibit 3 Long Term
Lease ES-0078.
Decommissioning Phase Rent. Lessee shall pay Lessor one-time Decommissioning
Phase Rent of three dollars ($3.00) per acre, payable upon commencement of
decommissioning activities on the land as described in Section 5.5 of Exhibit 3 Long
Term Lease ES-0078.
Ground Disturbance Fee. Lessee shall pay a one-time ground disturbance fee of one
dollar ($1.00) per acre, totaling seven hundred thirty-four dollars ($734.47). The Ground
Disturbance Fee must be paid to Lessor prior to the commencement of construction. See
Section 4.2.1 of Exhibit 3 Long Term Lease ES-0078.
Solar Power Device Installation Fees. In addition to the Ground Disturbance Fee
described above, Lessee shall pay a one-time installation fee of two thousand dollars
($2,000) per megawatt of Installed Capacity constructed on the Leased Premises in any
lease phase, including upon Repowering of any existing Solar Power Devices. Lessee
shall pay the Solar Power Device Installation Fee prior to the Commencement of
Construction on such Solar Power Devices.
Rental Interest and Late Fee. Interest on delinquent base rent or percent rent payments
shall accrue from the date the payment becomes due at the rate of one percent (1.0%) a
month or any fraction of a month. Lessee shall also pay a late processing fee of five
hundred dollars ($500.00) for any delinquent payment of rent, in accordance with the
Lessor’s schedule of fees, as provided in Section 4.1.4 of Exhibit 3 Long Term Lease ES0078.
Exhibit 1
C. Decommissioning Surety. Lessee shall establish and shall keep in full force and effect
during the Lease Term an irrevocable letter of credit, parental guarantee, bond, or other
form of Surety acceptable to Lessor as specified in Section 5.6 of Exhibit 3 Long Term
Lease ES-0078. The amount of the Decommissioning Bond or Surety shall be based on a
licensed independent engineer’s estimate of the total Decommissioning Costs.

IV. BIDDER QUALIFICATION.

A. Application: The Lease will require the Lessee to submit a plan to develop, manage and
operate a renewable energy (solar power) facility. The bidder should submit a complete
application including the qualifications of the bidder to develop the Land, to construct the
improvements contemplated by the proposed bid Lease, and to provide the NMSLO’s
trust beneficiaries with sustainable long-term returns from the proposed use. The bidder
qualification criteria are set out more fully in Exhibit 5, Bid Application and Qualification
Form.
B. Deposits: Deposits may be in the form of a certified or cashier’s check or bank money
order, made payable to the Commissioner of Public Lands. Actions which will result in
disqualification of a deposit and the related bid include without limitation: funds being
drawn on banks or issuers located outside the United States, payment of deposits being
subject to contingencies unrelated to the transaction, or deposit documents which are
postdated. The deposits of unsuccessful bidders will be refunded, minus the application
fee which is non-refundable. The successful bidder shall pay the total costs of advertising
and will be billed for any lease sale costs in excess of the amounts set out in the
transaction deposit. The monies to be submitted as part of the bidder qualification
include:
1. Application Fee (non-refundable) $ 500.00
2. Transaction Deposit (estimated advertising cost) $ 4,200.00
3. First Year Rent Deposit $ 5,141.29
Total Qualification Deposit: $ 9,841.29
C. Application and Deposit Submittal: To qualify to bid on lease ES-0078, a completed
Bid Application (Exhibit 5), and total qualification deposit must be received at the New
Mexico State Land Office (P.O Box 1148, Santa Fe, NM, 87504; 310 Old Santa Fe Trail,
Santa Fe, NM, 87501; or in the drop-box on the front of the State Land Office Building
at 310 Old Santa Fe Trail) Attn: Commissioner of Public Lands, no later than 3:00 p.m.
(MST) on Monday March 1, 2021.

V. PUBLIC AUCTION.
A. Notice: Notice of the auction of the Lease has been published as required by law in
Albuquerque Journal, Santa Fe & Albuquerque, NM, and the Newsline for the Blind. A
copy of the public notice is attached hereto as Exhibit 2: Notice of Public Auction. The
public notice is also posted on the NMSLO website, www.nmstatelands.org. Bid packets
may be obtained from the Director of the Office of Renewable Energy, Jeremy Lewis,
(505) 827-5724, jlewis@slo.state.nm.us; or online at www.nmstatelands.org. Because of
the coronavirus pandemic, the NMSLO building is currently not fully open to the public;
Exhibit 1
limited access is available by appointment only.
B. Sealed Bid Process: The auction will be in the form of a sealed bid. Only bidders who
submit a complete application, and have been notified by NMSLO that they meet the
qualification requirements, may submit a sealed bid. The minimum bonus bid amount is
two hundred thousand dollars ($200,000.00) with additional amounts in increments of ten
thousand dollars ($10,000.00) each. The bonus bid amount should be indicated on the
Sealed Bid Form and sealed in a separate envelope. The envelope containing the Sealed
Bid must be plainly marked “ES-0078 AUCTION-SEALED BID, not to be opened
until March 5, 2021 at 9:30 am.” Sealed bids may be submitted, by mail, express
delivery, or in the dropbox on the front of the State Land Office Building at 310 Old Santa
Fe Trail, to the Commissioner of Public Lands and must be received by 3:00 p.m. (MST)
on Thursday March 4, 2021. All bids submitted will be opened at the date, time and place
set forth below.
C. Sealed Bid Opening:
Date: Friday, March 5, 2021
Time: 9:30 am (MST)
Place: New Mexico State Land Office – On the front steps outside the
building, 310 Old Santa Fe Trail, Santa Fe, NM 87501 (Bidders
will be notified about any venue change)
D. Deposit of Bonus Bids; Clearing of Deposits: The successful bidder must deposit with
the Commissioner any bonus bid within five (5) business days of the auction. All deposits,
including the qualification deposit, must clear by the time that the Lease is executed. The
Lease must be executed within thirty (30) days of the sealed bid opening except that the
Commissioner may in their sole discretion extend this deadline to a maximum of onehundred and twenty (120) days.

SOLAR ENERGY LEASE ES-0078 FAQ

Question:
Will the State Land Office accept wire transfers (in lieu of a cashier’s check or money order) to pay the application fee/deposit and bonus bid amounts?

Answer:
The State Land Office can accept the application fee/deposit and bonus bid amounts by wire transfer.  To accomplish the wire transfer, please contact Margaret Sena, the Director of NM State Land Office’s Accounting Division, at 505-827-5705 or msena@slo.state.nm.us.

Solar Energy ES-0078 Bid Packet with Application Form
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