1. (a) If the Land Office determines that a project requested by either a qualified project partner or potential project partner should receive funds from the Account, the Land Office and the qualified project partner will amend the project cooperation agreement that was entered into earlier in the evaluation process, or the Land Office and the potential project sponsor will enter into a project cooperation agreement, in which case the potential project partner will become a qualified project partner. The Land Office shall explicitly describe in the project cooperation agreement the terms and conditions under which the Land Office will fund the project.

2. (b) The project cooperation agreement shall provide for management of the project by either the Land Office or by the qualified project partner. The Land Office, in its sole discretion, may determine whether:

   1. (1) the project will be managed by the Land Office, with payment to the Land Office by the qualified project partner of the required percentage of the shared project cost; or
   2. (2) the project will be managed by the qualified project partner with reimbursement from the Account to the qualified project partner for project expenses for work completed in the amount provided in the project cooperation agreement.

3. (c) Except as provided in Texas Natural Resources Code, §33.603(f) and (h), qualified project partners are required to pay a specified percentage of the shared project costs that is not less than the minimum amount prescribed by Texas Natural Resources Code, §33.603(e) as follows:

   1. (1) not less than 25 percent of the shared project cost if the project is a beach nourishment project on a public beach or bay shore; and

   2. (2) not less than 40 percent of the shared project cost if the project is any other coastal erosion response study or project, including:

      1. (A) a marsh restoration project; or
      2. (B) a bay shoreline protection project other than a beach nourishment project.
4. (d) The project cooperation agreement shall specify the terms of the qualified project partner's commitment to pay the required percentage of shared project costs.
5. (e) No costs incurred by a potential project partner before becoming a qualified project partner by entering into a project cooperation agreement with the Land Office may be used to offset the cost-sharing requirement of the CEPRA.
6. (f) In-kind goods or services provided by the qualified project partner after entering into a project cooperation agreement with the Land Office may offset the cost-sharing requirement, if the qualified project partner provides the Land Office with a reasonable basis for estimating the monetary value of those goods or services. The decision on whether to allow any in-kind good or service to offset the cost-sharing requirement is in the sole discretion of the Land Office.
7. (g) Local governments that receive financial assistance from the state to clean and maintain public beaches fronting the Gulf of Mexico under Chapter 25 of this title, relating to Beach Cleaning and Maintenance Assistance Program, will not be allowed to use funds received under that program to meet the cost-sharing requirement.

Source Note:The provisions of this §15.42 adopted to be effective July 9, 2003, 28 TexReg 5196; amended to be effective December 14, 2003, 28 TexReg 10947; amended to be effective September 11, 2005, 30 TexReg 5371.