COMMISSIONER OF PUBLIC LANDS
NOTICE OF PUBLIC AUCTION
FOR LEASE OF STATE TRUST LAND
Torrance, Santa Fe and San Miguel Counties, New Mexico
Business Lease No. EW-0021
The New Mexico Commissioner of Public Lands (the “Commissioner”) will accept bids at a live,
oral public auction, seeking the highest bid for a long term business ground lease, EW-0021 (the
“Lease”), for wind energy development and transmission, subject to all legal restrictions and
reservations of record, any and all restrictions and reservations in the Lease, and 19.2.9 NMAC.
EW-0021 is for 39,363.32 ± acres of state trust lands located approximately 12.5 miles northeast of
Willard, NM on U.S. Highway 60. Additional information is available in the Bid Packet, available at
www.nmstatelands.org or upon request. The entire Bid Packet is incorporated with this notice by
reference and should be reviewed before submitting a bid.
1)
Public Auction: Only bidders who have met the qualification requirements may bid.
The Auction will be in the form of a live, oral auction held:
Date:
Time:
Place:
September 19, 2013
11:00 am
Torrance County Courthouse
903 5th Street
Estancia, New Mexico 87016
2)
Description of the Land: The land consists of 39,363.32 ± acres located in Torrance,
Santa Fe and San Miguel Counties, New Mexico (the “Land”), more specifically described as:
TRACT 1
In Torrance County, New Mexico
Legal Description
Township, Range
LOT/ALIQUOT
Acres
Section
T5N, R12E
Section 02
Lots 1-4, S1/2, S1/2 N1/2
633.68
Section 06
Lots 1, 2, S1/2 NE1/4, N1/2 SE1/4
236.93
Section 18
Lots 1, 2, 15, 16
164.85
Section 04
SW1/4
160.00
Section 16
ALL
640.00
Section 18
Lot 4
T5N, R13E
39.10
T6N, R12E
Section 16
ALL
640.00
Section 32
ALL
640.00
Section 36
Lots 1-4, W1/2, W1/2 E1/2
640.76
ALL
640.00
Section 02
Lots 1-4, N1/2 S1/2, S1/2, N1/2
474.46
Section 16
ALL
640.00
Section 17
NE1/4, N1/2 SE1/4, SE1/4 SE1/4
280.00
T6N, R13E
Section 32
T7N, R12E
Section 32
Lots 1-5, E1/2 SE1/4
APPROXIMATE TOTAL ACREAGE
156.49
5,986.27
TRACT 2
In Torrance County, New Mexico
Legal Description
Township, Range
Section
LOT/ALIQUOT
Acres
T4N, R11E
Section 01
Lots 1-4, S1/2, S1/2 N1/2
657.44
Section 02
Lots 1-4, S1/2, S1/2 N1/2
655.48
Section 03
Lots 1-4, S1/2, S1/2 N1/2
653.32
Section 09
ALL
640.00
Section 10
ALL
640.00
Section 11
ALL
640.00
Section 12
ALL
640.00
Section 13
Section 14
ALL
640.00
N1/2,E1/2 SW1/4, SW1/4 SW1/4, SE1/4
600.00
Section 15
ALL
640.00
Section 16
ALL
640.00
Section 21
W1/2, N1/2 NE1/4, S1/2 SE1/4
480.00
Section 22
S1/2, E1/2 NE1/4, NW1/4 NW1/4
440.00
Section 23
ALL
640.00
Section 01
ALL
640.00
Section 02
Lots 1-4, S1/2, S1/2 N1/2
639.52
Section 03
Lots 1-4, S1/2, S1/2 N1/2
638.10
Section 10
ALL
640.00
Section 11
ALL
640.00
Section 12
ALL
640.00
Section 13
ALL
640.00
Section 14
ALL
640.00
Section 15
ALL
640.00
Section 16
ALL
640.00
Section 20
ALL
640.00
Section 21
ALL
640.00
Section 28
ALL
640.00
Section 29
ALL
640.00
Section 30
Lots 1-4, E1/2, E1/2 W1/2
639.06
Section 31
Lots 1-4, E1/2, E1/2 W1/2
639.42
Section 32
ALL
640.00
T4N, R12E
T5N, R11E
Section 23
ALL
640.00
Section 24
W1/2 NE4, W1/2, SE1/4
560.00
Section 25
ALL
640.00
Section 26
ALL
640.00
Section 35
Lots 1-4, N1/2, N1/2 S1/2
604.20
Section 36
Lots 1-4, N1/2, N1/2 S1/2
604.08
Section 28
ALL
640.00
Section 29
ALL
Section 30
Lots 1-20, NE1/4, SE1/4
1,125.60
Section 31
Lots 1-22, NE1/4, N1/2 SE1/4
1,131.73
Section 32
Lots 1-4, N1/2, N1/2 S1/2
643.40
Section 33
Lots 1-4, N1/2, N1/2 S1/2
642.52
T5N, R12E
APPROXIMATE TOTAL ACREAGE
640.00
27,993.87
Transmission Route
Legal Description
Township, Range
LOT/ALIQUOT
Acres
Section
In Torrance County, New Mexico
T7N, R11.5E
Section 1
Section 12
Section 13
Section 24
T7N, R12E
Section 18
Section 19
T8N, R11E
Section 1
Section 12
Section 13
Section 24
T9N, R11E
Section 1
Section 12
Section 13
Section 24
Section 25
Section 36
T9N, R12E
Section 6
Lots 1-6, S1/2 NE1/4, SE1/4
Lots 1-3, NE1/4, NW1/4 SE1/4
Lots 1-4, E1/2
Lots 1-4, E1/2
494.57
332.82
497.08
496.24
Lots 3, 4, 6, 7, E1/2 W1/2
Lots 1-4, E1/2 W1/2
320.16
320.40
Lot 1, E1/2 SE1/4
E1/2 E1/2
E1/2 E1/2
E1/2 E1/2
126.98
160.00
160.00
160.00
Pt. Lot 1, Pt. Lot 2, E1/2 SE1/4
E1/2 E1/2
E1/2 E1/2
E1/2 E1/2
E1/2 E1/2
E1/2 E1/2
160.01
160.00
160.00
160.00
160.00
160.00
Lots 4, 5
78.06
In Santa Fe County, New Mexico
T10N, R11E
Section 13
Section 24
Section 25
Section 36
E1/2 E1/2
E1/2 E1/2
E1/2 E1/2
E1/2 E1/2
160.00
160.00
160.00
160.00
In San Miguel County, New Mexico
T10N, R 12E
Section 18
Section 19
Section 30
Section 31
Lots 1-4
Lots 1-4
Lots 1-4
Lots 1-4
APPROXIMATE TOTAL ACREAGE
3)
Summary of Basic Provisions of the Lease: The land proposed to be leased, and,
164.38
160.48
156.48
155.52
5,383.18
pursuant to State Land Office Rule 9 (19.2.9 NMAC is for the purpose of Wind Energy
Development and Transmission, and is subject to the terms and conditions authorized in the
Lease. The term of the Lease is for 45 years, may be extended. The Lease rent consists of (i)
base rent, (ii) percent rent, and (iii) transmission route rent. The base rent (detailed more
specifically in the Lease) is: (i) between $2-3 per acre during the Initial Phase, (ii) (a)
minimum of $3 - $6 per acre during the first nine years of the Operations phase, (b) a
minimum of $6 - $7.50 per acre during years 10-18 of the Operation Phase, (c) a minimum of
$9 per acre during years 19-27 of the Operation Phase, (d) a minimum of $10.50 per acre
during years 28-36 of the Operation Phase, (e) a minimum of $12 per acre for every year of
the Operation Phase after and including the year 37 of the Operation Phase, (f) and $3 per
acre payable once upon commencement of the Decommissioning Phase. The percent rent is
4% of the gross revenue from the project to the extent it exceeds the base rent. The
transmission route rent is $328.50 per MW of aggregate installed capacity transmitting
electricity through the “Estancia Valley” or through the entire El Cabo Project of the Land.
The Lease also contains terms regarding the Commissioner’s reservation of the right to grant
grazing leases on the land in the business lease, assignment and subletting, relinquishment,
default, insurance, indemnification, and is subject to all pertinent State Statutes and Rules. A
reclamation/decommissioning bond or similar must also be posted in an amount approved by
the Commissioner prior to the commencement of construction. The Commissioner may
consider proposed changes to the Lease either before or after execution, but will not deviate
from the minimum rent or any provisions representing the statutory, constitutional, or other
legal obligations of the Commissioner.
4)
Qualification of Bidders & Required Deposits: Only qualified bidders may bid at
the live public auction. In order to qualify to bid at the auction, prospective bidders must: 1)
submit a completed application (see Bid Packet Exhibit ‘6’) and 2) make a Qualification
Deposit with the Commissioner in the amount of $88,776.64, consisting of a Transaction
Deposit of $10,050 and the First Year Base Rent Deposit of $78,726.64. The Qualification
Deposit may be in the form of a certified or cashier's check or bank money order, made
payable to the Commissioner of Public Lands. The deposits of unsuccessful bidders will be
refunded, however the $50.00 application fee is non-refundable. The Application, Consent
documentation from grazing lessees and Qualification Deposit must be received at: [the State
Land Office, P.O. Box 1148, 310 Old Santa Fe Trail, Room 102, Santa Fe, NM, 87501, Attn:
Don Britt, Assistant Commissioner of Commercial Resources, no later than 4:00 p.m. on
September 13, 2013.]
5)
Selection of the Winning Bidder: Provided the Lease is awarded to a qualified
bidder the minimum bid will begin at $1,000.00 at the live public auction. Additional bonus
bids must be made in minimum increments of $1,000. In the event that the auction is
cancelled, reasonable effort will be made to notify all qualified bidders. The Commissioner
reserves the right to reject all bids or to cancel this auction, and to reinitiate the process of
offering the Land for long-term lease or sale or exchange on the same or different terms. The
successful bidder must deposit with the Commissioner the bided bonus amount no later than
five (5) business days after the live auction. The bonus bid amounts must be deposited into
the State Land Office suspense account by the time that the Lease is executed, or within
thirty (30) days after the auction. The Commissioner may, in his sole discretion, extend this
deadline to a maximum of one-hundred and twenty (120) days. The Commissioner may
disqualify a bidder and declare the next highest Qualified Bidder to be the successful bidder,
or declare that no bid was successful.
6)
How to Get Additional Information: Additional information is available in the Bid
Packet. The Bid Packet is incorporated in this Notice by reference and should be reviewed in
detail before attempting to qualify to bid. To obtain a copy of the Bid Packet please contact:
Joe Ortiz, Mgt. Analyst Supervisor
NM State Land Office
310 Old Santa Fe Trail
Santa Fe, New Mexico 87501
505-827-5711
jortiz@slo.state.nm.us
OR
Amy Atchley, Mgt. Analyst
NM State Land Office
310 Old Santa Fe Trail
Santa Fe, New Mexico 87501
505-827-5753
aatchley@slo.state.nm.us
Disabled individuals who require aids to participate in the long-term Lease auction may call
505-827-5711; Fax 505-827-6157 and /or TTY (800) 659-8331. Upon request, these
documents may be available in alternative formats.
Dated at Santa Fe, New Mexico, this 26th day of June 2013.
_________________________________
Ray Powell, M.S. D.V.M.
Commissioner of Public Lands
Santa Fe, New Mexico