Closed shawnbot closed 8 years ago
Whoops, submitted too soon; editing...
Picking up conversation here (lots of updates in #1348, but it's getting looooong).
We talked today and determined that we needed to update the language in the chart to do a few things:
In the process of drafting content, I discovered some other needs:
Here's my working draft, in messy visual form:
...I'll post a separate comment with this content in table form for ease of copy/pasting.
Commodity | Phases of production | ||
---|---|---|---|
Securing rights Companies pay bonuses or other fees to secure rights to resources on federal land |
Before production Companies pay rent on federal land while exploring for resources |
During production Companies pay royalties after production begins |
|
Oil and Gas | |||
Onshore | Bonus: The amount offered by the highest bidder |
$1.50 annual rent per acre for 5 years $2 annual rent per acre thereafter |
12.5% of production value |
Offshore | Bonus: The amount offered by the highest bidder | $7 or $11 annual rent per acre, increasing over time up to $44 per acre in some cases | 12.5%, 16.67%, or 18.75% of production value |
Coal | |||
Bonus: The amount offered by the highest bidder | $3 annual rent per acre |
Surface mining: 12.5% of production value + $0.28 per ton in AML fees Subsurface mining: 8% of production value + $0.12 per ton in AML fees |
|
Hardrock minerals* | |||
Acquired lands | $6,500 prospecting permit fee | $37 annual rent per acre + $0.50 annual prospecting fee per acre | Royalty rates are determined by leasing officers on an individual case basis (no minimums apply) |
Renewable energy | |||
Geothermal energy: Competitive leasing |
Nomination fees: $110 per nomination + $0.11 per acre Lease: Winning bid amount + $155 competitive lease processing fee |
$2 per acre for one year $3 annual rent per acre for 2nd-10th years $5 annual rent per acre thereafter |
????? |
Geothermal energy: Noncompetitive leasing | Lease: $400 payment |
$1 annual rent per acre for 10 years $5 annual rent per acre thereafter |
????? |
Solar energy | Bonus: The amount offered by the highest bidder | Rent determined by acreage and land value | Proposed: $6.21 per kilowatt in Megawatt Capacity fees |
Onshore wind energy | Bonus: The amount offered by the highest bidder | Rent determined by acreage and land value | Proposed: $3.55-$5.32 per kilowatt in Megawatt Capacity fees |
Offshore wind energy |
Bonus (if competitive bid): The amount offered by the highest bidder Acquisition fee (if noncompetitive bid): $0.25 per acre |
$3 annual rent per acre | 2% of anticipated value in operating fees (unless otherwise specified or waived) |
Other revenue streams:
If possible, it'd be great to only show offshore rates on offshore area profile pages.
We also need to clarify which rents are only paid during the exploration phase and which continue being paid after production begins.
@coreycaitlin @ericronne what's the latest here? Is there a version of the mega-chart that's right for the MVP that we can have @gemfarmer implement before he leaves us for camping? ;)
Let's see what the next hour or two yield, stay tuned ...
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I changed the HTML version of the chart to fill in some of the gaps ^^
Still to-do:
@ericronne ping :) What's yer latest?
@meiqimichelle the latest design puts this as the third tab in the commodity revenues megachart (invision prototype here). And as we discussed yesterday with @coreycaitlin and @gemfarmer, perhaps we will kill the totals tab. Test it?
@coreycaitlin's content is not reflected here (tab 3), but if she and @meiqimichelle give this the thumbs up, i think we can call it MVP-worthy...
Remember to use the invision comments tool if you wish!
Next step: @gemfarmer @coreycaitlin and @meiqimichelle to pair and split tasks to implement.
Content with revisions from the experts at ONRR:
Commodity | Phases of production | |||
---|---|---|---|---|
Securing rights Companies pay bonuses or other fees to secure rights to resources on federal land |
Before production Companies pay rent on federal land while exploring for resources |
During production Companies pay royalties after production begins |
Other revenue Minimum or estimated royalties, settlements, and interest payments |
|
Oil and Gas | ||||
Onshore | Bonus: The amount offered by the highest bidder |
$1.50 annual rent per acre for 5 years $2 annual rent per acre thereafter |
12.5% of production value | |
Offshore | Bonus: The amount offered by the highest bidder | $7 or $11 annual rent per acre, increasing over time up to $44 per acre in some cases | 12.5%, 16.67%, or 18.75% of production value | |
Coal | ||||
Bonus: The amount offered by the highest bidder | $3 annual rent per acre |
Surface mining: 12.5% of production value + $0.28 per ton in AML fees Subsurface mining: 8% of production value + $0.12 per ton in AML fees |
||
Hardrock minerals* | ||||
Acquired lands | $6,500 prospecting permit fee | $37 annual rent per acre + $0.50 annual prospecting fee per acre | Royalty rates are determined by leasing officers on an individual case basis (no minimums apply) | |
Renewable energy | ||||
Geothermal energy: Competitive leasing |
Nomination fee: $110 per nomination + $0.11 per acre Bonus: The amount offered by the highest bidder $160 processing fee |
$2 per acre for the first year $3 annual rent per acre for years 2-10 $5 annual rent per acre thereafter |
If selling electricity: 1.75% of gross proceeds for the first 10 years of production, then 3.5% of gross proceeds If selling geothermal resources for third-party electricity generation: 10% of gross proceeds from sales contract multiplied by the lease royalty rate (usually 10%) *** |
|
Geothermal energy: Noncompetitive leasing | Lease: $410 payment |
$1 annual rent per acre for 10 years $5 annual rent per acre thereafter |
If selling electricity: 1.75% of gross proceeds for the first 10 years of production, then 3.5% of gross proceeds If selling geothermal resources for third-party electricity generation: 10% of gross proceeds from sales contract multiplied by the lease royalty rate (usually 10%) *** |
|
Solar energy | Bonus: The amount offered by the highest bidder | Rent determined by acreage and land value | Proposed: $6.21 per kilowatt in Megawatt Capacity fees | |
Onshore wind energy | Bonus: The amount offered by the highest bidder | Rent determined by acreage and land value | Proposed: $3.55-$5.32 per kilowatt in Megawatt Capacity fees | |
Offshore wind energy |
Bonus (if competitive bid): The amount offered by the highest bidder Acquisition fee (if noncompetitive bid): $0.25 per acre |
$3 annual rent per acre | 2% of anticipated value in operating fees (unless otherwise specified or waived) |
*\ For leases signed before the Energy Policy Act of 2005: The lesseeās reasonable actual transmission and generation costs are deducted from gross proceeds from electricity sales, and the resulting value is multiplied by the lease royalty rate (usually 10%); for direct use, the lessee pays the equivalent value of least expensive, reasonable alternative energy source. Thermal energy utilized must be measured by lessee at the inlet and outlet of facility. The resulting value is multiplied by the lease royalty rate of 10%.
Let's break this out into the remaining separate issues. Which are:
Remaining issues moved to separate homes. Closing!
The dynamic process table in #1454 is a little funky, style-wise. I defer to @ericronne, but here are some of my observations, referencing @gemfarmer's screenshot below: