HLS 12RS-1099 ORIGINAL Page 1 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2012 HOUSE BILL NO. 500 BY REPRESENTATIVE TIM BURNS MINERALS/LEASES: Requires written notice by land owner to lessee prior to judicial demand for restoration or damages from mineral activity AN ACT1 To amend and reenact R.S. 31:136, relative to notice of damages from mineral activity; to2 require written notice by the lessor to lessees prior to a judicial demand for damages3 or dissolution of the lease; and to provide for related matters.4 Be it enacted by the Legislature of Louisiana:5 Section 1. R.S. 31:136 is hereby amended and reenacted to read as follows: 6 ยง136. Written notice; requirement and effect on claims for damages or dissolution7 of lease8 A. If a mineral lessor seeks relief from his lessee arising from drainage of9 the property leased or from any other claim that the lessee has failed to develop and10 operate the property leased as a prudent operator, he must give his lessee written11 notice of the asserted breach to perform and allow a reasonable time for performance12 by the lessee as a prerequisite to a judicial demand for damages or dissolution of the13 lease. If a lessee is found to have had actual or constructive knowledge of drainage14 and is held responsible for consequent damages, the damages may be computed from15 the time a reasonably prudent operator would have protected the leased premises16 from drainage. In other cases where notice is required by this Article, damages may17 be computed only from the time the written notice was received by the lessee.18 B. In an action for restoration of the surface or for surface or subsurface19 damages alleged to have occurred as a result of surface mineral activity, the lessor20 HLS 12RS-1099 ORIGINAL HB NO. 500 Page 2 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions. or surface owner of land subject to a mineral lease shall give a mineral lessee written1 notice of the asserted breach to perform or alleged damage to the property and allow2 a reasonable time for performance by the lessee as a prerequisite to a judicial3 demand for damages or dissolution of the lease.4 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)] Tim Burns HB No. 500 Abstract: Requires written notice by land owner to lessee prior to judicial demand for restoration or damages from mineral activity. Present law provides a process for remediation of an oilfield site under the terms of a mineral lease. Proposed law requires written notice by land owner to lessee prior to judicial demand for restoration or damages from mineral activity. (Amends R.S. 31:136)