Common use of Operating Fee Clause in Contracts

Operating Fee. For purposes of calculating the initial annual operating fee payment under 30 CFR 585.506, BOEM applies an operating fee rate to a proxy for the wholesale market value of the electricity expected to be generated from the project during its first 12 months of operations. This initial payment will be prorated to reflect the period between the commencement of commercial operations and the Lease Anniversary. The initial annual operating fee payment will be due within 90-calendar days of the commencement of commercial operations. Thereafter, subsequent annual operating fee payments will be due on or before the Lease Anniversary. The subsequent annual operating fee payments will be calculated by multiplying the operating fee rate by the imputed wholesale market value of the projected annual electric power production. For the purposes of this calculation, the imputed market value will be the product of the project’s annual nameplate capacity, the total number of hours in a year (8,760), the capacity factor, and the annual average price of electricity derived from a regional wholesale power price index. For example, the annual operating fee for a 976 megawatt (MW) wind facility operating at a 40 percent capacity (i.e., capacity factor of 0.4) with a regional wholesale power price of $40 per megawatt hour (MWh) and an operating fee rate of 0.02 will be calculated as follows: Annual Operating Fee = 976 MW × 8,760year × 0.4 × MWh Power Price × 0.02 = $2,735,923.20 i. Operating Fee Rate: The operating fee rate is the share of the imputed wholesale market value of the projected annual electric power production due to ONRR as an annual operating fee. For the Lease Areas, BOEM will set the fee rate at 0.02 (2 percent) for the entire life of commercial operations.

Operating Fee. For purposes of calculating the initial annual operating fee payment under 30 CFR 585.506, BOEM applies an operating fee rate to a proxy for the wholesale market value of the electricity expected to be generated from the project during its first 12 months of operations. This initial payment will be prorated to reflect the period between the commencement of commercial operations and the Lease Anniversary. The initial annual operating fee payment will must be due paid within 90-calendar 90 days of the commencement of commercial operations. Thereafter, subsequent annual operating fee payments will fees must be due paid on or before the Lease Anniversary. The subsequent annual operating fee payments fees will be calculated by multiplying the operating fee rate by the imputed wholesale market value of the projected annual electric power production. For the purposes of this calculation, the imputed market value will be the product of the project’s annual nameplate capacity, the total number of hours in a year (8,760), the capacity factor, and the annual average price of electricity derived from a regional wholesale power price index. For example, the annual operating fee for a 976 976-megawatt (MW) wind facility operating at a 40 percent capacity (i.e., capacity factor of 0.4) with a regional wholesale power price of $40 per megawatt hour (MWh) and an operating fee rate of 0.02 will would be calculated as follows: Annual Operating Fee = 976 MW × 8,760year × 0.4 × MWh Power Price × 0.02 = $2,735,923.20 i. Operating Fee Rate: The operating fee rate is the share of the imputed wholesale market value of the projected annual electric power production due to ONRR the Office of Natural Resources Revenue (ONRR) as an annual operating fee. For the Lease Areas, BOEM will proposes to set the fee rate at 0.02 (2 percent) for the entire life of commercial operations.

Operating Fee. For purposes of calculating the initial annual operating fee payment under 30 CFR 585.506, BOEM applies an operating fee rate to a proxy for the wholesale market value of the electricity expected to be generated from the project during its first 12 months of operations. This initial payment will would be prorated to reflect the period between the commencement of commercial operations and the Lease Anniversary. The initial annual operating fee payment will would be due within 90-calendar 45 days of the after commencement of commercial operations. Thereafter, subsequent annual operating fee payments will would be due on or before the Lease Anniversary. The subsequent annual operating fee payments will be are calculated by multiplying the operating fee rate by the imputed wholesale market value of the projected annual electric power production. For the purposes of this calculation, the imputed market value will would be the product of the project’s annual nameplate capacity, the total number of hours in a the year (8,760), the capacity factor, and the annual average price of electricity derived from a regional wholesale power price index. For example, the annual operating fee for a 976 976-megawatt (MW) wind facility operating at a 40 percent capacity (i.e., capacity factor of 0.4) with a regional wholesale power price of $40 per megawatt hour (MWh) and an operating fee rate of 0.02 will be calculated as follows: Annual Operating Fee = 976 MW × 8,760year 8,760 year × 0.4 × MWh Power Price × 0.02 = $2,735,923.202,736,820.22 i. Operating Fee Rate: The operating fee rate is the share of the imputed wholesale market value of the projected annual electric power production due to ONRR as an annual operating fee. For the Lease Areas, BOEM will set the fee rate at 0.02 (i.e., 2 percent) for the entire life of commercial operations.

Operating Fee. For purposes of calculating the initial annual operating fee payment under 30 CFR 585.506, BOEM applies an operating fee rate to a proxy for the wholesale market value of the electricity expected to be generated from the project during its first 12 months of operations. This initial payment will be prorated to reflect the period between the commencement of commercial operations and the Lease Anniversary. The initial annual operating fee payment will be due within 90-calendar days of the commencement of commercial operations. Thereafter, subsequent annual operating fee payments will be due on or before the Lease Anniversary. The subsequent annual operating fee payments will be calculated by multiplying the operating fee rate by the imputed wholesale market value of the projected annual electric power production. For the purposes of this calculation, the imputed market value will be the product of the project’s annual nameplate capacity, the total number of hours in a year (8,760), the capacity factor, and the annual average price of electricity derived from a regional wholesale power price index. For example, the annual operating fee for a 976 976-megawatt (MW) wind facility operating at a 40 percent capacity (i.e., capacity factor of 0.4) with a regional wholesale power price of $40 per megawatt hour (MWh) and an operating fee rate of 0.02 will would be calculated as follows: Annual Operating Fee = 976 MW × 8,760year × 0.4 × MWh Power Price × 0.02 = $2,735,923.20 i. Operating Fee Rate: The operating fee rate is the share of the imputed wholesale market value of the projected annual electric power production due to ONRR the Office of Natural Resources Revenue (ONRR) as an annual operating fee. For the Lease Areas, BOEM will proposes to set the fee rate at 0.02 (2 percent) for the entire life of commercial operations.

Operating Fee. For purposes of calculating the initial annual operating fee payment under 30 CFR 585.506, BOEM applies an operating fee rate to a proxy for the wholesale market value of the electricity expected to be generated from the project during its first 12 months of operations. This initial payment will be prorated to reflect the period between the commencement of commercial operations and the Lease Anniversary. The initial annual operating fee payment will be due within 90-90 calendar days of the commencement of commercial operations. Thereafter, subsequent annual operating fee payments will be due on or before the Lease Anniversary. The subsequent annual operating fee payments will be calculated by multiplying the operating fee rate by the imputed wholesale market value of the projected annual electric power production. For the purposes of this calculation, the imputed market value will be the product of the project’s annual nameplate capacity, the total number of hours in a year (8,760), the capacity factor, and the annual average price of electricity derived from a regional wholesale power price index. For example, the annual operating fee for a 976 megawatt (MW) wind facility operating at a 40 percent capacity (i.e., capacity factor of 0.4) with a regional wholesale power price of $40 per megawatt hour (MWh) and an operating fee rate of 0.02 will would be calculated as follows: Annual Operating Fee = 976 MW × 8,760year × 0.4 × MWh Power Price × 0.02 = $2,735,923.20 i. Operating Fee Rate: The operating fee rate is the share of the imputed wholesale market value of the projected annual electric power production due to ONRR the Office of Natural Resources Revenue (ONRR) as an annual operating fee. For the Lease Areas, BOEM will proposes to set the fee rate at 0.02 (2 percent) for the entire life of commercial operations.at

Operating Fee. For purposes of calculating the initial annual operating fee payment under 30 CFR 585.506, BOEM applies would apply an operating fee rate to a proxy for the wholesale market value of the electricity expected to be generated from the project during its first 12 months of operations. This initial payment will would be prorated to reflect the period between the commencement of commercial operations and the Lease Anniversary. The initial annual operating fee payment will would be due within 90-calendar 45 days of the commencement of commercial operations. Thereafter, subsequent annual operating fee payments will would be due on or before the Lease Anniversary. The subsequent annual operating fee payments will would be calculated by multiplying the operating fee rate by the imputed wholesale market value of the projected annual electric power production. For the purposes of this calculation, the imputed market value will would be the product of the project’s annual nameplate capacity, the total number of hours in a the year (8,760), the capacity factor, and the annual average price of electricity derived from a regional wholesale power price index. For example, the annual operating fee for a 976 megawatt (MW) wind facility operating at a 40 percent capacity (i.e., capacity factor of 0.4) with a regional wholesale power price of $40 per megawatt hour (MWh) and an operating fee rate of 0.02 will would be calculated as follows: Annual Operating Fee = 976 MW × 8,760year 8,760 year × 0.4 × MWh Power Price × 0.02 = $2,735,923.202,736,820.22 i. Operating Fee Rate: The operating fee rate is would be the share of the imputed wholesale market value of the projected annual electric power production due to ONRR as an annual operating fee. For the Lease Areas, BOEM will ▇▇▇▇ proposes to set the fee rate at 0.02 (i.e., 2 percent) for the entire life of commercial operations.