Louisiana 2012 2012 Regular Session

Louisiana House Bill HB500 Introduced / Bill

                    HLS 12RS-1099	ORIGINAL
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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
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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)