Or. Admin. Code § 141-125-0160 - Compensation
(1) To establish the amount of annual
compensation or minimum bid at auction, the Department will:
(a) Adhere to the policies contained in OAR
141-125-0110(1) and (2) of these rules, and
(b) Whenever practicable, base the amount on
comparative compensatory payments for publicly or privately-owned parcels
located as close as possible to the state-owned land requested by an
applicant.
(2) In the
event that reliable data concerning comparative compensatory payments are not
available, the Department will select another method of determining the amount
of compensatory payment or minimum bid at auction such as a percent of the
appraised value of the requested area, percent of crop or product value, or
percent of product produced.
(3)
For the uses indicated in OAR 141-125-0160(4) through 141-125-0160(11), the
Department will determine the amount of annual compensatory payment owed by the
holder of a special use lease or license using the method(s)
indicated.
(4) Agricultural Uses.
As an alternative to basing the amount of compensation due for an agricultural
use on comparative compensatory payments, the Department may, at its
discretion, use a cropshare approach. If this methodology is used, the state's
share will be no less than 25 percent of the value received by the holder of a
special use lease or license in payment for each crop harvested from the
authorized area.
(5) Upland Quarry.
(a) The holder of a special use lease or
license for an upland quarry must remit to the Department:
(A) Eight percent of the gross revenue
received by the lessee or licensee from the sale of the rock, boulders, sand,
gravel, silt or soil removed by the lessee or licensee, or
(B) The compensation rate in effect at the
time of removal as provided in OAR 141-014 (Rules for Authorizing Leases and
Licenses for the Removal or Use of Rock, Sand, Gravel and Silt Derived from
State-Owned Submerged and Submersible Land) for "shorecast dredge spoils" if
the lessee or licensee uses the rock, boulders, sand, gravel, silt or
soil.
(b) Data
concerning the quantity of rock, boulders, sand, gravel, silt or soil removed
and sold, and the revenue received from any sales will be recorded and reported
by the lessee or licensee to the Department on a basis and at an interval set
by the Department and included as a provision of the license or
lease.
(c) In addition to the
compensation required under OAR 141-125-0160(5)(a), the holder of a special use
license or lease for an upland quarry is required to pay the compensation due
for any easements (for example, roads leading into the quarry and power lines
crossing state land) or other forms of authorization required by Department
rules.
(6) Semiprecious
Stones, Petrified Wood and Fossils. Any person removing semiprecious stones,
petrified wood or fossils for commercial purposes must remit to the Department
within 30 calendar days of the removal of any semiprecious stones, petrified
wood and fossils:
(a) Compensatory payment in
the amount of 10 percent of the market value of the semiprecious stones,
petrified wood and fossils; and
(b)
Photocopies of the evidence used by the lessee or licensee to determine the
market value of the semiprecious stones, petrified wood and fossils removed.
This evidence must accompany the payment of compensation owed. Documentation
suitable to the Department includes, but is not limited to a sales receipt (if
the material is sold to another party); an appraisal by a gemologist or mineral
dealer; or advertisements for the sale of similar material in lapidary
magazines or trade journals.
(7) Retrieval of Sunken Logs, Woody Debris
and Abandoned Pilings.
(a) The holder of a
special use license or lease to retrieve sunken logs, woody debris and
abandoned pilings from state-owned submerged and submersible land for their
commercial value must remit to the Department 10 percent of the gross revenue
received by the lessee or licensee from the sale of any logs or lumber products
produced from the logs.
(b) Data
concerning the quantity of lumber recovered or sold and revenue received from
any sales must be recorded and reported by the lessee or licensee to the
Department on a basis to be set by the Department and included as a provision
of the license or lease.
(c) In
addition to the compensation required under OAR 141-125-0160(7)(a), the holder
an special use lease or license to retrieve sunken logs, woody debris and
abandoned pilings must also pay the compensation due for any easements (for
example, storage of logs on state-owned land) or other forms of authorization
required by the Department.
(8) Wind Turbines/Wind Farms.
(a) The holder of a special use lease or
license must remit to the Department:
(A)
During the demonstration project period the greatest of:
(i) $500;
(ii) $5.00 per acre of land within the
authorized area; or
(iii) The
comparative compensatory payment received by other landowners for similar
demonstration projects.
(B) During the construction period a one-time
installation fee equal to $3,000 times the number of megawatts of nameplate
rated capacity for each wind turbine to be installed as a part of that phase of
the development.
(C) During the
operation period:
(i) 2.5 percent of the gross
revenue received by the lessee for, or the value of the electricity generated
by each turbine during from the start of the operation through year
10;
(ii) 3.5 percent of the gross
revenue received by the lessee for, or the value of the electricity generated
by each turbine from year 11 through year 15;
(iii) 4.0 percent of the gross revenue
received by the lessee for, or the value of the electricity generated by each
turbine from year 16 until the termination of the operation of that
turbine.
(D) During the
decommissioning period: An amount to be determined by the Director based on the
compensation which could reasonably be expected to be received by the
Department for the use of the land encumbered by the wind power
project.
(b)
Notwithstanding the provisions of OAR 141-125-0160(8)(a), the director reserves
the right to establish another rate of compensation to be charged by the
Department during the construction and operation periods based on factors
unique to an operation (for example, distance of the operation from major
transmission lines and variability of the wind) and comparative compensatory
payments.
(c) The lessee or
licensee will record and report the amount of electricity generated by each
wind turbine and wind farm under lease as well as the gross revenue resulting
from that generation on a basis to be determined by the Department and included
as a provision of the lease. Gross revenue is defined as all revenues earned
through the sale of the electricity by the lessee to purchasers.
(d) In the event the lessee or licensee
consumes all, or a portion of the electricity generated by the wind turbine and
wind farm, the Department will establish a value for that electricity based on
what the lessee or licensee would have to pay a utility for the equivalent
amount of electricity delivered to the lessee's or licensee's point of demand
as well as information provided by the lessee.
(e) In addition to the compensation required
under OAR 141-125-0160(8)(a) and (b) the holder of a lease or license for a
wind turbine and wind farm is required to pay to the Department the
compensation due for any easements (for example, transmission lines crossing
state land) or other forms of authorization required by the
Department.
(9) Solar
Energy Installation.
(a) The holder of a
special use lease or license for a solar energy installation must remit to the
Department:
(A) During the demonstration
project period the greatest of:
(i)
$500;
(ii) $5.00 per acre of land
within the authorized area; or
(iii) The comparative compensatory payment
received by other landowners for similar demonstration projects.
(B) During the construction,
operation and decommissioning periods, an amount to be determined by the
Director based on comparative compensatory payments.
(b) Data concerning the amount of generation
and its value will be recorded and reported by the lessee to the Department on
a basis to be determined by the Department and included as a provision of the
license or lease.
(c) In addition
to the compensation required under OAR 141-125-0160(9)(a) and
(d) The holder of a special use lease or
license for solar energy installation is required to pay the compensation due
for any easements (for example, transmission lines crossing state land) or
other forms of authorization required by the Department.
(10) Geothermal Energy Installation.
(a) The holder of a special use lease or
license for a geothermal energy installation must remit to the Department:
(A) During the demonstration project period
the greatest of:
(i) $500 per year;
(ii) $5.00 per acre of land within the
authorized area per year; or
(iii)
The comparative compensatory payment received by other landowners for similar
demonstration projects per year.
(B) During the construction, operation and
decommissioning periods, an amount to be determined by the Director based on
comparative compensatory payments.
(i) The
Director shall take into consideration current industry standards for annual
comparative compensatory payments by reviewing the current Bureau of Land
Management Code of Federal Regulations, current comparative compensatory
payments received by other states, and comparative compensatory payments
received by private landowners under free market conditions.
(b) Data concerning the
amount of generation and its value will be recorded and reported by the lessee
to the Department on a basis to be determined by the Department and included as
a provision of the license or lease.
(c) Upon the sale, exchange or other
disposition for value of by-products produced in conjunction with the
production of Geothermal Resources under a license or lease, the holder shall
pay royalties as follows:
(A) Demineralized
water - A royalty on the sale of demineralized water shall be reported and paid
to the Department monthly. The royalty payment shall be the greatest of:
(i) One percent of the gross sale price of
demineralized water sold, exchanged, or otherwise disposed of for value in any
calendar month; or
(ii) The
comparative royalty rate received by other landowners for demineralized water
regionally.
(B) Heavy
metals, nonhydrocarbon gases, and miscellaneous precipitates -- A royalty on
the sale of heavy metals, nonhydrocarbon gases, and miscellaneous precipitates
shall be reported and paid to the Department monthly. The royalty payment shall
be the greatest of:
(i) Five percent of the
gross sale price of all heavy metals, miscellaneous precipitates, and
nonhydrocarbon gases sold, exchanged, or otherwise disposed of for value in any
calendar month; or
(ii) The
comparative royalty rate received by other landowners for all heavy metals,
miscellaneous precipitates, and nonhydrocarbon gases sold, exchanged, or
otherwise disposed of regionally
(d) In addition to the compensation required
under OAR 141-125-0160(10)(a), (b) and (c), the holder of a special use lease
or license for a geothermal energy installation is required to pay the
compensation due for any easements (for example, transmission lines crossing
state land) or other forms of authorization required by the
Department.
(11) Biomass
Generating Facility.
(a) The holder of a
special use lease or license for a commercial electrical energy generating
installation using biomass must remit to the Department:
(A) During the demonstration project period
the greatest of:
(i) $500,
(ii) $5.00 per acre of land within the
authorized area, or
(iii) The
comparative compensatory payment received by other landowners for similar
demonstration projects.
(B) During the construction, operation and
decommissioning periods, an amount to be determined by the Director based on
comparative compensatory payments.
(b) Data concerning the amount of generation
and its value will be recorded and reported by the lessee to the Department on
a basis to be determined by the Department and included as a provision of the
license or lease.
(c) In addition
to the compensation required under OAR 141-125-0160(11)(a), the holder of a
special use lease for biomass generating facility is required to pay the
compensation due for any easements (for example, transmission lines crossing
state land) or other forms of authorization required by the
Department.
(d) If the biomass used
to fuel a generating facility is obtained from state-owned land, the Director
will determine the amount of compensation owed by the lessee for the use of
this material.
(12)
Regardless of the type of use that is subject to a special use authorization,
the amount of annual compensation received by the Department will not be less
than:
(a) $500 per year for all
leases;
(b) $100 per year for
licenses; or
(c) The minimum bid
when the lease is awarded through public auction.
Notes
Statutory/Other Authority: ORS 273.045
Statutes/Other Implemented: OR Const. Art. VIII, Sec 2 & 5
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