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Regular Session, 2010
HOUSE BILL NO. 977
BY REPRESENTATIVE HARRISON
MINERALS/LEASES: Provides relative to the administration and management of the
state's mineral resources
AN ACT1
To amend and reenact R.S. 30:136(A)(1)(c) and to enact R.S. 44:4(44), relative to the office2
of mineral resources; to provide for the confidentiality of records while an audit is3
being performed by the office of mineral resources of the Department of Natural4
Resources; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 30:136(A)(1)(c) is hereby amended and reenacted to read as follows:7
§136. Funds, disposition and appropriation of; penalties8
A.(1)9
* * *10
(c) The immediate acceptance of such payments shall not prejudice either the11
right of the state as lessor or the rights of the state's lessee or lessees as provided12
under the terms of the validly existing mineral leases. A lessee, operator, or other13
person directly involved in developing, producing, transporting, purchasing, or14
selling oil, gas, or other minerals from state leases shall establish, maintain, and15
make available for inspection or audit by the office of mineral resources auditors any16
information that is reasonably relevant to the computation of royalties, and upon the17
request by any such auditor the office of mineral resources, the appropriate records,18
reports, or information shall be made available for duplication. All records which19 HLS 10RS-458 ENGROSSED
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are filed by or received from any person by the office of mineral resources, or any1
official or employee in the office of mineral resources, or which in any manner is in2
the custody or control of the office of mineral resources, or any official or employee3
in the office of mineral resources shall be deemed public record except where such4
record is designated as confidential by law; however, in order to prevent the5
impairment of an ongoing audit investigation by the office of mineral resources, all6
audit working papers, records, or any information provided by the entity being7
audited shall remain confidential during the investigation and until the audit is8
complete and closed. Once the audit investigation has been deemed complete and9
closed by the office of mineral resources, all audit working papers, records, and10
information obtained under this Subtitle shall be made available to the public except11
for all oil and gas sales contracts, natural gas liquids processing contracts, natural gas12
liquids sales contracts, and any other proprietary information received from the13
company being audited that has been determined by the secretary of the Department14
of Natural Resources to be confidential. If the secretary determines that a record15
shall be held confidential, he shall make that determination in writing. Records16
determined confidential by the secretary under the provisions of this Section shall17
be held confidential by the office of mineral resources and shall not be subject to the18
Public Records Act.19
* * *20
Section 2. R.S. 44:4(44) is hereby enacted to read as follows:21
§4. Applicability22
This Chapter shall not apply:23
* * *24
(44) To any records, data, writings, accounts, reports, letters, exhibits,25
pictures, photographs, drawings, charts, maps, or copies or memoranda thereof,26
whether written or oral, which are related to a royalty audit conducted by the office27
of mineral resources of the Department of Natural Resources under the provisions28
of R.S. 30:136(A) and which are filed by or received from any person by the office29 HLS 10RS-458 ENGROSSED
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of mineral resources of the Department of Natural Resources, or any official or1
employee in the office of mineral resources of the Department of Natural Resources,2
or which in any manner is in the custody or control of the office of mineral resources3
of the Department of Natural Resources, or any official or employee in the office of4
mineral resources of the Department of Natural Resources.5
Section 3. This Act shall become effective upon signature by the governor or, if not6
signed by the governor, upon expiration of the time for bills to become law without signature7
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If8
vetoed by the governor and subsequently approved by the legislature, this Act shall become9
effective on the day following such approval.10
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)]
Harrison HB No. 977
Abstract: Provides for confidentiality of records while an audit is being performed by the
office of mineral resources of the Dept. of Natural Resources.
Proposed law provides that if an audit is performed by the office of mineral resources, while
the audit is ongoing, any information provided for the audit or contained in the audit shall
be confidential. Delineates what will be public record after the audit and what will remain
confidential. Authorizes the secretary of the Dept. of Natural Resources to determine that
a record should remain confidential. Requires such determination to be in writing and
provides that those records are not subject to the Public Records Act.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 30:136(A)(1)(c); Adds R.S. 44:4(44))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Natural Resources and
Environment to the original bill.
1. Removed provisions that would have required payors of royalties to file a written
report each month to the office; would have authorized payors whose annual
payment is less than $1,000 to submit payments monthly by an annual report;
and would have required that all royalties due under a unit be paid by one payor.
2. Removed provisions that would have authorized the State Mineral and Energy
Board, under operating agreements administered by the board, to require a
prospective operator to pay a reasonable liquidated damage assessment to offset
any bonus which could have been realized from leasing state property.