HLS 13RS-73 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2013
HOUSE BILL NO. 223
BY REPRESENTATIVE HENRY BURNS
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
MINERALS: Provides relative to the timely payment of royalties to a mineral lessor
AN ACT1
To amend and reenact R.S. 31:137, relative to the payment of royalties; to provide for the2
timely payment of royalties; and to provide for related matters.3
Be it enacted by the Legislature of Louisiana:4
Section 1. R.S. 31:137 is hereby amended and reenacted to read as follows: 5
ยง137. Nonpayment of royalties; notice prerequisite to judicial demand6
A. If a mineral lessor seeks relief for the failure of his lessee to make timely7
or proper payment of royalties, he must shall give his lessee written notice of such8
failure as a prerequisite to a judicial demand for damages or dissolution of the lease.9
B. Subject to the delays provided by R.S. 31:212.32 and unless otherwise10
provided by the mineral lease, timely payment of royalties shall mean payment of11
royalties from the proceeds from the sale of oil or gas production from an oil or gas12
well to persons legally entitled to payment commencing not later than six months13
after the date of the first sale, and thereafter, subsequent royalties shall be paid no14
later than:15
(1) Sixty days after the end of the calendar month in which subsequent oil16
production is sold.17
(2) Ninety days after the end of the calendar month in which subsequent gas18
production is sold.19 HLS 13RS-73 ORIGINAL
HB NO. 223
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
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)]
Henry Burns HB No. 223
Abstract: Defines "timely payment" relative to the payment of royalties.
Present law provides that if a mineral lessor seeks relief for the failure of his lessee to make
timely or proper payment of royalties, he must give his lessee written notice of such failure
as a prerequisite to a judicial demand for damages or dissolution of the lease.
Proposed law defines "timely payment" as, subject to other delays contained in present law
and unless otherwise provided by the mineral lease, the payment of royalties from the
proceeds from the sale of oil or gas production from an oil or gas well to persons legally
entitled to payment commencing not later than six months after the date of the first sale, and
thereafter, subsequent royalties shall be paid no later than:
(1)60 days after the end of the calendar month in which subsequent oil production is
sold.
(2)90 days after the end of the calendar month in which subsequent gas production is
sold.
(Amends R.S. 31:137)