Wyo. Code R. 085-0011-1
Effective Date: 01/27/2016 to Current
Rule Type: Current Rules & Regulations
Reference Number: 085.0011.1.01272016
(a) These rules are adopted in order to implement W.S. 9-20-101 through 9-20-104, which provide for entering into a contractual agreement with eligible mineral to value added products facilities. The rules provide for a method of application, review and recommendations, the establishment of terms and a hearing process; (b) The legislature finds that the state of Wyoming has an abundance of natural mineral resources which provide the basis of the state's economy. The vast majority of Wyoming's extracted mineral wealth is consumed or converted to higher value products outside of the state of Wyoming; (c) The legislature finds that it is in the interest of the state of Wyoming to encourage the development of industries in the state which convert the state's mineral resources to higher valued products prior to exportation from the state.
(a) Authority for the promulgation of these rules is granted in W. S. 9-20-102 through 9-20-104
(a) "Minerals to value added products facility" includes a commercial scale mineral to liquid fuels or other value added products facilities but shall not include any facility which will derive fifty percent (50%) or more of its anticipated revenues from the generation of electricity; (b) "Tolling fee" means a negotiated fee for the conversion of feedstock mineral provided by the state of Wyoming under a contract with the operator of a value added facility; (c) "Council" means the Wyoming Business Council; (d) "Board" means the Wyoming State Loan and Investment Board.
Section 4. Applicants. An Applicant shall consist of an enterprise which operates or intends to operate a commercial-scale facility which manufactures fuels or products in Wyoming using mineral feedstock materials substantially produced in Wyoming as further described in W.S. 9-20-103 (c).
(a) Any commercial scale minerals to value added products facility shall first submit a proposal to the governor. The governor may provide recommendations for the size and parameters of the proposed contract. (b) An application to participate in the program shall then be submitted to and reviewed by the Council under the process set forth in W.S. 9-12-601 through 9-12-603. (c) The Council shall provide recommendations for terms and conditions contained in a proposed contract. The Council's recommendations shall be forwarded to the Board for final consideration of the application. (d) Attorney General's Office. The Attorney General's Office shall provide a written opinion certifying the legality of the transaction and all documents. (e) The Governor, Council or Board is authorized to employ such experts as necessary to fully evaluate an application and negotiate the terms and conditions of a contract under the act. If experts are retained, the cost for the experts shall be paid by the applicant. (f) The Council may contract with such experts as necessary to assist in determining proof of performance of its obligations under any contract entered into, including assistance with feed stock purchases and the sale of value added products. (g) Material change or new information. After Board's final approval of application/project the Council may request from the applicant any materials or information the Council deems necessary to create a contract.
(a) Project application. An application including any recommendations by the Governor to participate in the program shall be submitted to and reviewed by the Council under the process set forth in W.S. 9-12-601 through 9-12-603. The project application must contain the following comprehensive information:
i. Tab A - A detailed overview of the applicant's business entity, including identification of all executive management and all owners including the names of the owners and the percentage interest of each owner with greater than or equal to ten percent (10%) of the entity making the proposal. For clarity, the ten percent (10%) disclosure requirement shall apply to any entity or individual with an option to increase ownership to equal to greater than ten percent (10%) of the entity making the proposal;
ii. Tab B - A detailed description of the proposal;
iii. Tab C – A business plan accurately describing the existing business, and its history;
iv. Tab D – A comprehensive chart and detailed description identifying all business entities related to the applicant, whether by contract or through a corporate affiliation;
v. Tab E – Annual audited financials which contains an unqualified opinion of an independent certified public accountant for the preceding three (3) years, including tax returns. If the enterprise is a new entity without historical financial reports, the applicant must submit an audited balance sheet which contains an unqualified opinion of an independent certified public accountant issued not more than sixty (60) days before the application;
vi. Tab F – A balance sheet and projected cash flow for the duration of the contract term proposed;
vii. Tab G – Commitments to sell the finished product and other indices necessary to demonstrate the applicant’s ability to perform under the contract as determined by these rules and regulation;
viii. Tab H – Detail of the costs associated to the value added conversion facility and associated financial comments including terms and structure. This detail shall demonstrate private investment in the county or counties in buildings, equipment and direct project infrastructure of not less than three (3) times the amount of any contract;
ix. Tab I – A list of all permits and environmental analysis required for the project including the parties who will be responsible for each permit submission, permit issuance and environmental review;
x. Tab J – Third party engineering and economic analysis;
xi. Tab K – A project timeline indicating key dates for engineering review, permit application, permit receipt, environmental clearance, and any third party construction of facilities completion that are required for the commissioning and operation of the proposed facility;
xii. Tab L – Notice and identification of any threatened or pending litigation involving the anticipated project and/or the applicant;
xiii. Tab M – Industry-specific information and documentation concerning the applicant’s business activities within that industry, including without limitation, regulatory information related to the project to be undertaken;
xiv. Tab N – Inventory and evaluation of social and economic conditions and impact assessment from the project. If the Wyoming Industrial Development Information and Siting Act is applicable to project, the contained Socieconomic Baseline and Impacts analysis may be submitted to the application;
xv. Tab O – Any relevant ongoing or new information that arises any time after applicant's initial submission of the above information which may influence or bear upon the review of the proposal, including without limitation, new or altered financing arrangements, statutory, regulatory or rule changes which may impact applicant's project or operations or the proposal thereof, or changes in ownership.
xvi. All of the foregoing requirements (i through xv) are a continuing obligation of disclosure by the applicant during the pendency of the application.
(b) Additional Information. In addition to information in the project application, the Council may ask for additional information necessary to conduct its due diligence and review of the project. Applicants shall respond to such requests in a timely manner with complete and current information. Any documents, materials or information provided to the Council may be shared with any other State agency, including without limitation, the Attorney General, Governor's office, and Board. If the Applicant provides any additional information or documents to the Governor's office in connection with their review of the project outside the information contained in the original proposal, the applicant must also provide such additional information or documents to the Council.
(a) After an application to participate in the program is approved by Board, the Council may complete negotiations to contract to supply not more than twenty percent (20%) of the expected mineral supply to the facility for the duration of the contract. Total contract amounts for any one (1) facility shall be set by rule of the Board based on the provisions of the act and the expected return to the state of Wyoming, but in no event shall a contract exceed fifty million dollars ($50,000,000) (b) The proposed contract shall be submitted to the Council for review and determination under the process set forth in W.S. 9-12-601 through 9-12-603; (c) The Council's recommendations shall be forwarded to the Board for final consideration of the contract; (d) The Applicant is required to close the contract within six (6) months of the final approval of state Board. The Applicant may request an extension of the closing deadline in writing and must demonstrate good cause why the deadline should not apply and why a new deadline should be set. The Board may agree to extend the closing deadline. In no event will Board provide an extension which would allow the loan or loan guarantee to close more than one (1) year after the final approval without resubmitting the request to the Council and the approval of the Board.