§ 162.546. What requirements for due diligence must a WSR lease include?
218 words·~1 min read·
/us/cfr/t25/s§ 162.546·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)A WSR lease must include due diligence requirements that require the lessee to:
(1)Commence installation of energy facilities within 2 years after the effective date of the lease or consistent with a timeframe in the resource development plan;
(2)If installation does not occur, or is not expected to be completed, within the time period specified in paragraph (a)(1) of this section, provide the Indian landowners and BIA with an explanation of good cause as to the nature of any delay, the anticipated date of installation of facilities, and evidence of progress toward commencement of installation;
(3)Maintain all on-site electrical generation equipment and facilities and related infrastructure in accordance with the design standards in the resource development plan; and
(4)Repair, place into service, or remove from the site within a time period specified in the lease any idle, improperly functioning, or abandoned equipment or facilities that have been inoperative for a continuous period specified in the lease (unless the equipment or facilities were idle as a result of planned suspension of operations, for example, for grid operations or during bird migration season).
(b)Failure of the lessee to comply with the due diligence requirements of the lease is a violation of the lease and may lead to cancellation of the lease under § 162.592.