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Regular Session, 2010
SENATE BILL NO. 724
BY SENATOR N. GAUTREAUX
LANDS/WATERBOTTOM. Provides relative to the income beneficiary of certain revenues
generated on certain state-owned water bottoms. (8/15/10)
AN ACT1
To amend and reenact R.S. 41:642(A)(2), relative to sixteenth section and school board2
indemnity lands; to provide for revenues generated by certain sixteenth section and3
school board indemnity lands; to provide terms and conditions; and to provide for4
related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 41:642(A)(2) is hereby amended and reenacted to read as follows:7
ยง642. Sixteenth section lands; erosion; title and revenues8
A.(1) * * *9
(2)(a) In the event any such eroded or subsided lands are covered by an10
existing oil and gas lease or other contract granted by the state in its sovereign11
capacity, all proceeds from production and other revenues, generated after July 1,12
2007, and attributable to the eroded lands, shall be credited to the account of the13
current school fund of the parish having an interest in the sixteenth section or14
indemnity lands.15
(b) In the event sixteenth section lands are comprised entirely of state-16
owned water bottoms and no school indemnity lands were provided for such17 SB NO. 724
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Coding: Words which are struck through are deletions from existing law;
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sixteenth section lands, all proceeds received by the state from production and1
other revenues generated after July 1, 2007, from any oil and gas lease or other2
contract granted by the state in its sovereign capacity attributable to the3
sixteenth section lands shall be credited, subject to an appropriation specifically4
for proceeds attributable to Fiscal Years 2007-2008, 2008-2009, and 2009-2010,5
to the account of the school fund of the parish in which such sixteenth section6
lands are located. Beginning in Fiscal Year 2010-2011 and thereafter, such7
proceeds shall be credited to the account of the current school fund of the parish8
in which such sixteenth section lands are located. The secretary of the9
Department of Natural Resources shall certify to the treasurer the amount of10
proceeds to be credited pursuant to this Subparagraph.11
* * *12
Section 2. The provisions of this Act shall be applied retroactively to July 1, 2007.13
The original instrument was prepared by J. W. Wiley. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Martha Hess.
DIGEST
N. Gautreaux (SB 724)
Present law provides that sixteenth section or school board indemnity lands will be deemed
transferred to the state in its sovereign capacity when such lands become a part of the bed
of any body of navigable water as a result of erosion, subsidence of the surface, action of a
navigable stream, bay, lake, or the Gulf of Mexico, or other similar occurrence. Further
provides that revenues generated by such former lands held in trust shall be credited to the
account of the current school fund of the parish having an interest in the sixteenth section
or indemnity school lands to ensure the purposes of the original grant.
Present law provides an exception that in the event any such eroded or subsided lands are
covered by an existing oil and gas lease or other contract granted by the state in its sovereign
capacity, all proceeds from production and other revenues, generated after July 1, 2007, and
attributable to the eroded lands, will be credited to the account of the current school fund of
the parish having an interest in the sixteenth section or indemnity lands.
Present law provides for the proof required to be presented to the DNR showing the exact
extent of land claimed to be lost through erosion or subsidence and evidence as may be
required by DNR showing the extent of the erosion or subsidence claimed.
Proposed law provides that in the event sixteenth section lands are comprised entirely of
state-owned water bottoms and no school indemnity lands were provided for such sixteenth
section lands, all proceeds received by the state from production and other revenues
generated after July 1, 2007, from any oil and gas lease or other contract granted by the state
in its sovereign capacity attributable to the sixteenth section lands shall be credited, subject
to an appropriation specifically for proceeds attributable to FY 2007-2008, 2008-2009, and SB NO. 724
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Coding: Words which are struck through are deletions from existing law;
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2009-2010 to the account of the school fund of the parish in which such sixteenth section
lands are located. Beginning in FY 2010-2011 and thereafter, such proceeds shall be
credited to the account of the current school fund of the parish in which such sixteenth
section lands are located. Further provides that the secretary of the DNR must certify to the
treasurer the amount of proceeds to be credited pursuant to proposed law.
Proposed law provides that proposed law will be applied retroactively to July 1, 2007.
Effective August 15, 2010.
(Amends R.S. 41:642(A)(2))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original
bill.
1. Provides that credit for proceeds attributable to FY 2007-2008, 2008-2009,
and 2009-2010 to the account of the school fund of the parish in which such
sixteenth section lands are located, shall be subject to appropriation.
Beginning in FY 2010-2011 and thereafter, such proceeds shall be credited
to the current school fund of the parish where such sixteenth section lands are
located.