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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2012
SENATE BILL NO. 530
BY SENATOR PEACOCK
MINERALS. Provides relative to certain unsolicited offers for lease or purchase of mineral
rights. (8/1/12)
AN ACT1
To enact Part 6 of Chapter 13 of Title 31 of the Louisiana Revised Statutes of 1950,2
comprised of R.S. 31:218, relative to mineral rights and interests; to provide relative3
to certain unsolicited offers for lease or purchase of mineral rights or interests; to4
provide certain terms, conditions, requirements, and effects of such unsolicited5
offers; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. Part 6 of Chapter 13 of Title 31 of the Louisiana Revised Statutes of 1950,8
comprised of R.S. 31:218, is hereby enacted to read as follows: 9
PART VI. UNSOLICITED OFFERS FOR LEASE OR10
PURCHASE OF MINERAL RIGHTS11
ยง218. Unsolicited offers for lease or purchase of mineral rights; requirements;12
limitations; effects; nullity13
A. An unsolicited offer, by mail or electronic communication, for lease14
or purchase of a mineral right or interest shall include and accurately disclose15
the following information prominently displayed in boldfaced lettering of equal16
or greater size:17 SB NO. 530
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(1) Whether the offer is for a lease of a mineral right or interest, or for1
a purchase of a mineral right or interest, or both.2
(2) A description of the specific mineral right or interest, limited to one-3
half of a mile beyond the described property line, for which the offer is made.4
(3) The total monetary amount or other compensation offered for the5
lease or purchase.6
(4) If a lease, the term of the lease or any extension.7
B. An unsolicited offer by mail for the lease or purchase of a mineral8
right or interest shall not include advance payment, in whole or part, for the9
lease or purchase. If such payment is included, it shall be deemed an10
unconditional gift or donation to the recipient, who may accept and use such11
funds without liability or any obligation to the sender. The recipient may use12
the funds for any purpose, including legal or other consultation concerning the13
unsolicited offer.14
C. The failure of an unsolicited offer to conform to the requirements of15
this Section shall render any act resulting from the offer a nullity. The sender16
shall pay any legal costs associated with any act of lease or purchase arising17
from an unsolicited offer that is subject to the provisions of this Section.18
D.(1) The provisions of this Section shall supersede and control to the19
extent of any conflict with any other provision of law.20
(2) The provisions of this Section shall not apply to any lease established21
by an authentic act, or any lease executed in the presence of two witnesses, and22
signed by each party who executed it and by each witness, or any lease executed23
in the presence of a notary, signed by the notary and each party that executed24
it.25 SB NO. 530
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
The original instrument was prepared by McHenry Lee. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Nancy Vicknair.
DIGEST
Peacock (SB 530)
Proposed law provides relative to unsolicited offers for lease or purchase of mineral rights
or interests.
Proposed law provides that an unsolicited offer, by mail or electronic communication, for
lease or purchase of a mineral right or interest shall include and accurately disclose the
following information prominently displayed in boldfaced lettering of equal or greater size:
1. Whether the offer is for a lease of a mineral right or interest, or for a purchase of a
mineral right or interest, or both.
2. A description of the specific mineral right or interest, limited to one half of a mile
beyond the described property line, for which the offer is made.
3. The total monetary amount or other compensation offered for the lease or purchase.
4. If a lease, the term of the lease or any extension.
Proposed law provides that an unsolicited offer by mail for the lease or purchase of a mineral
right or interest shall not include advance payment, in whole or part, for the lease or
purchase. If such payment is included, it shall be deemed an unconditional gift or donation
to the recipient, who may accept and use such funds without liability or any obligation to the
sender. Also provides that the recipient may use the funds for any purpose, including legal
or other consultation concerning the unsolicited offer.
Proposed law provides that the failure of an unsolicited offer to conform to these
requirements shall render any act resulting from the offer a nullity. The sender shall pay any
legal costs associated with any act of lease or purchase arising from an unsolicited offer.
Proposed law further provides that its provisions shall supersede and control to the extent
of any conflict with any other provision of law.
Proposed law provides that proposed law shall not apply to any lease established by an
authentic act, or any lease executed in the presence of two witnesses, and signed by each
party who executed it and by each witness, or any lease executed in the presence of a notary,
signed by the notary and each party that executed it.
Effective August 1, 2012.
(Adds R.S. 31:218)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Natural Resources to
the original bill
1. Makes changes to the information that must be disclosed in an unsolicited
offer. SB NO. 530
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Senate Floor Amendments to engrossed bill
1. Make technical changes.
2. Specify that proposed law is not applicable to leases established by authentic
act or leases appropriately executed.