HLS 10RS-367 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 588
BY REPRESENTATIVE BURFORD
MINERALS: Provides for information provided to mineral interest owners
AN ACT1
To amend and reenact R.S. 31:212.31(B)(4), (5), (6), (8), and (9) and to enact R.S.2
31:212.31(C), relative to information provided to mineral interest owners; to provide3
for information provided to such mineral interest owners; to provide for requests for4
certain information from payors; to provide for notice to mineral interest owners; and5
to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 31:212.31(B)(4), (5), (6), (8), and (9) are hereby amended and8
reenacted and R.S. 31:212.31(C) is hereby enacted to read as follows:9
ยง212.31. Payment information to interest owners 10
* * *11
B. Whenever payment is made for oil or gas production to an interest owner,12
whether pursuant to a division order, lease, servitude, or other agreement, all of the13
following information shall be included on the check stub or on an attachment to the14
form of payment, unless the information is otherwise provided on a regular basis:15
* * *16
(4) Owner's final realizable Gross sales price per barrel or MCF.17
(5) Total amount of severance and other production taxes, with the exception18
of windfall profit tax, and the total amount of all other deductions.19 HLS 10RS-367 ORIGINAL
HB NO. 588
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(6) Net Gross and net value of total sales from the property after taxes are1
deducted and all other deductions.2
* * *3
(8) Interest owner's share of the total gross value of sales prior to any tax or4
other deductions.5
(9) Interest owner's share of the net sales value less after his share of the6
production and taxes, severance taxes, and all other applicable deductions as7
applicable.8
C.(1) If the payor does not explain on the check stub, attachment to the9
payment form, or other remittance, or by a separate mailing, the interest owner may10
request the payor to provide an explanation of deductions from or adjustments to11
payments of oil or gas produced or sold from the lease, property, or well in which the12
owner has an interest, or the heating value of such gas sold. The payor shall respond13
not later than sixty days after the date the payor receives the request. Any such14
request or response to such request must be in writing and sent by certified mail.15
(2) At least once every twelve months, a payor shall provide written notice16
to interest owners of their right and the procedure to request information from a17
payor pursuant to this Subsection.18
Section 2. This Act shall become effective on January 1, 2011.19
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Burford HB No. 588
Abstract: Requires payors to provide mineral interest owners certain information and
additional information upon request.
Present law provides that payment for oil gas production to a mineral interest owner by
division order, lease, servitude, or other agreement be accompanied by the following
information:
(1)Lease identification number, if any, or reference to appropriate agreement with
identification of the well or unit from which production is attributed.
(2)Month and year of sales or purchases included in the payment. HLS 10RS-367 ORIGINAL
HB NO. 588
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(3)Total barrels of crude oil or MCF of gas purchased.
(4)Owner's final realizable price per barrel or MCF.
(5)Total amount of severance and other production taxes, with the exception of windfall
profit tax.
(6)Net value of total sales from the property after taxes are deducted.
(7)Interest owner's interest, expressed as a decimal fraction, in production from (1)
above.
(8)Interest owner's share of the total value of sales prior to any tax deductions.
(9)Interest owner's share of the sales value less his share of the production and
severance taxes, as applicable.
Proposed law provides the required information given to include the gross price per barrel
or MCF, the gross value of sales from the property, the total amount of deductions, the
interest owner's share of the gross value of the sales, and the interest owner's share of the net
sales.
Proposed law requires that, when not otherwise provided, payors provide mineral interest
owners an explanation of deductions and payments from oil and gas sold or the heating value
of gas sold within 60 days of the request. Any such request or response to such request is
required to be in writing and to be sent by certified mail.
Proposed law requires payors to provide written notice to interest owners of their right, and
the procedure to request information pursuant to proposed law.
Effective Jan. 1, 2011.
(Amends R.S. 31:212.31(B)(4), (5), (6), (8), and (9); Adds R.S. 31:212.31(C))