April 7, 2011
In Reply Refer To:  
2800 (350) P
Instruction Memorandum No. 2011-096
Expires: 09/30/2012
To:                  All Field Officials
From:              Assistant Director, Minerals and Realty Management
Subject:          Certification of Bonding – Wind Energy Site Testing and Wind Energy Development Authorizations                                                                DD: 04/29/2011
Program Areas:  Right-of-Way Management, Wind Energy.
Purpose: This Instruction Memorandum (IM) reiterates policy and provides guidance for ensuring that Bureau of Land Management (BLM) field offices are in compliance with bonding requirements for wind energy right-of-way authorizations. IM 2009-043, Wind Energy Development Policy dated December 19, 2008, requires that a bond be provided by the right-of-way holder for all wind energy site testing and monitoring and development right-of-way authorizations. 

Policy/Action: The BLM must be able to validate satisfactory compliance with the bonding requirements of the regulations (43 CFR 2805.12(g)) and with the bonding requirements of IM 2009-043.  Bonds are required prior to the issuance of a Notice to Proceed or the start of land disturbance activities granted in the right-of-way authorization.  To ensure compliance with these requirements, all BLM field offices will be required by this IM to review and update data in the Legacy Rehost System 2000 (LR2000) Bond and Surety System (B&SS) for all wind energy site testing and development authorizations, including all existing authorizations. Within 30 days of the issuance of this IM, the BLM State Director must certify that a bond has been provided or requested for all wind energy right-of-way authorizations within his or her respective state.  This certification, using the attached memorandum form, will be submitted to Washington Office Division of Lands, Realty and Cadastral Survey (WO-350) by April 29, 2011.  This certification memorandum will also be required to be completed and submitted to WO-350 within 30 days of the end of each fiscal year.  Additionally, within 30 days of reviewing the data, the BLM authorized officer is required to issue a letter of non-compliance to any wind energy right-of-way authorization that does not have a bond.  

Timeframe: This IM is effective immediately.   

Budget Impact: None.  The administration of wind energy right-of-way authorizations are subject to the cost recovery provisions of the right-of-way regulations.
Background:  The Office of the Inspector General is currently conducting an evaluation of the BLM’s Renewable Energy Program (Assignment No. CR-EV-BLM-0004-2010) and has issued a Notification of Potential Findings and Recommendations that has identified several wind energy site testing authorizations without a bond. 
Manual/Handbook Sections Affected:  None.
Coordination:  Because this IM reiterates policy and guidance issued in Fiscal Year 2009, coordination was limited to BLM WO staff and the Office of the Solicitor.
Contact:  If you have questions, please contact me at 202-208-4201, or your staff may contact Ray Brady, Renewable Energy Policy Team, at 202-912-7312, or ray_brady@blm.gov.
Signed by:                                                                    Authenticated by:
Michael Nedd                                                                Robert M. Williams
Assistant Director                                                         Division of IRM Governance,WO-560
Minerals and Realty Management
1 Attachment