Offshore energy lease rule proposed

Wind developers are one step closer to examining vast new tracts of wind resources. But they’ll have to be willing to get a bit wet to do so.

A proposed rule for granting leases on the Outer Continental Shelf for alternative energy development was released July 8 by the Mineral Management Service (MMS) arm of the Department of Interior and opened for comment.

The proposed rule provides a path for companies looking to explore and exploit wind and other alternative energy resources off the nation’s coasts. It provides for both commercial and limited leases.

A commercial lease would last 30 years and give holders the right to develop and sell energy from renewable resources while a limited lease lasts only five years and is meant to give smaller companies and those merely assessing a site a lower-cost option. Limited leases could be renewed at the end of the term, but could not be converted to commercial leases. They also do not give holders an advantage when bidding on a commercial lease for the same site.

Once they are awarded, easement leases for constructing wind turbines or other energy generators would not be exclusive. A site leased by an offshore wind developer may have to share space with a company exploring wave or tidal energy options, for example.

The proposed rule for leasing does not remove requirements to undertake environmental impact studies or any other federal study or public comment requirements. All leases will be awarded to the highest bidder under the proposed rule.