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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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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, without the execution6
of a written agreement to enter into a mineral lease or of a sale or transfer of7
mineral rights, shall not create or act as a mineral lease, sale, or transfer of8
mineral rights. In addition, the acceptance shall not constitute an agreement by9
the landowner or owner of mineral rights to grant a mineral lease or to sell or10
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 the payment.16
C.(1) Whenever a party tenders payment to a landowner or owner of17
mineral rights, the party tendering payment shall have one hundred eighty days18
from the date of deposit of the payment in order to execute an agreement, lease,19
or transfer or to send a notice of repayment by certified mail, return receipt20
requested, to the landowner or owner of mineral rights. If an agreement, lease,21
or transfer is not executed between the parties or the party tendering payment22
does not send a notice of repayment by certified mail, return receipt requested,23
then the party tendering payment shall not have a cause of action against the24
landowner or owner of mineral rights for the repayment.25
(2) The landowner or owner of mineral rights shall have one year from26
the receipt of the notice of repayment to return the original payment to the27
party tendering payment.28
(3) The landowner or owner of mineral rights shall be subject to a29 SB NO. 260
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liberative prescription of two years from the receipt of the notice of repayment1
required by Paragraph (2) of this Subsection.2
The original instrument was prepared by McHenry Lee. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Linda Nugent.
DIGEST
Peacock (SB 260)
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 "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 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 shall have 180 days from the date of the deposit to execute an agreement or to send
a notice of repayment to the landowner or owner of mineral rights. If no agreement is
executed or notice of repayment sent, the party tendering payment has no cause of action for
the repayment. Provides that the landowner or owner will have one year from notice of
repayment to submit the repayment. Further provides that the landowner or owner is subject
to a liberative prescription of two years from the receipt of the notice of repayment.
Effective August 1, 2013.
(Adds R.S. 31:218)
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
1. Gives the party making the offer 180 days from the date of the deposit to
execute an agreement or to send a notice of repayment to the landowner or
owner of mineral rights.
2. Provides that if no agreement is executed or notice of repayment sent, the
party tendering payment has no cause of action for the repayment.
3. Gives the landowner or owner one year from notice of repayment to submit
the repayment.
4. Provides that the landowner or owner is subject to a liberative prescription
of two years from the receipt of the notice of repayment.