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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, 2013
SENATE BILL NO. 260 (Substitute of Senate Bill No. 91 by Senator Peacock)
BY SENATOR PEACOCK
MINERALS. Relative to certain solicitations for transfer of mineral rights. (8/1/13)
AN ACT1
To enact Part VI 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 offers for lease or purchase of mineral rights or interests; to provide certain4
terms, conditions, and requirements, and effects of the offers; and to provide for5
related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. Part VI of Chapter 13 of Title 31 of the Louisiana Revised Statutes of8
1950, comprised of R.S. 31:218 is hereby enacted to read as follows:9
PART VI. THE FAIR PRACTICES IN SOLICITATION FOR10
TRANSFER OF MINERAL RIGHTS ACT11
ยง218. Solicitations for transfer of mineral rights; requirements; limitations;12
effects13
A.(1) As used in this Article, "payment" shall mean cash, a check, a14
draft or other form of payment.15
(2) In the case of payment made by a check, draft or other similar form16
of payment, "acceptance" shall not be deemed to occur until funds have been17 SB NO. 260
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
transferred pursuant to a check, draft, or other similar form of payment.1
B.(1) Whenever a landowner or an owner of mineral rights receives2
payment related to an offer to lease, buy, or otherwise acquire all or any portion3
of his mineral rights, or any interest therein, notwithstanding anything4
contained in the offer, the acceptance, whether intentional or unintentional, of5
the payment by the landowner or owner of mineral rights, with or without the6
execution of a written agreement to enter into a mineral lease or of a sale or7
transfer of mineral rights, shall not create or act as a mineral lease, sale, or8
transfer of mineral rights. In addition, the acceptance shall not constitute an9
agreement by the landowner or owner of mineral rights to grant a mineral lease10
or to sell or transfer any mineral rights.11
(2) The party tendering or delivering the payment in connection with the12
offer to lease, buy, or otherwise acquire a mineral right shall not have, nor13
acquire, any cause of action to require the landowner or owner of mineral rights14
to grant a mineral lease or to sell or transfer mineral rights as a result of the15
acceptance of said payment.16
C.(1) Whenever a landowner or owner of mineral rights accepts17
payment but does not execute a written agreement to enter into a mineral lease18
or a sale or transfer of mineral rights, or any interest therein, for which the19
payment was tendered, the party making the offer and tendering the payment20
shall have a cause of action against the landowner or owner of mineral rights21
to recover the payment.22
(2) The action by a party to recover the payment made to a landowner23
or an owner of mineral rights and accepted without the execution of any24
agreement, lease, or transfer shall be subject to a liberative prescription of one25
hundred eighty days from the receipt of payment by the landowner or owner of26
mineral rights. The landowner or owner of mineral rights shall have one year27
from the date of notice of the cause of action to submit payment.28 SB NO. 260
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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 and the following digest, which constitutes no part
of the legislative instrument, were prepared by McHenry Lee.
DIGEST
Proposed law provides that "payment" shall mean cash, a check, a draft or other form of
payment. Further provides that in the case of payment by a check, draft or other similar
form of payment, "acceptance of payment" shall not be deemed to occur until funds have
been transferred pursuant to a check, draft, or other similar form of payment.
Proposed law provides that whenever a landowner or owner of a mineral right receives
payment in connection with an offer to lease, buy, or acquire any portion of his mineral
rights, the acceptance of such payment shall not constitute an agreement to enter into a lease,
sale, or transfer of his mineral rights. Further provides that the party making the offer will
have no cause of action to require the owner of the mineral rights to enter into a lease, sale,
or transfer of his mineral rights.
Proposed law provides that when a landowner or owner of mineral rights accepts a payment,
but does not execute a written lease, sale, or transfer of his mineral rights, the party making
the offer will have 60 days to file a cause of action against the owner to recover the payment.
Further provides that the owner will have one year to submit payment against the cause of
action.
Effective August 1, 2013.
(Adds R.S. 31:218)