SLS 14RS-901 ORIGINAL Page 1 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2014 SENATE BILL NO. 570 BY SENATOR LONG MINERALS. Provides relative to the prescription of nonuse for properties transferred in connection to an economic development project. (8/1/14) AN ACT1 To enact R. S. 31:149(I), relative to the prescription of nonuse; provides that the prescription2 of nonuse for mineral rights does not run against land that was transferred in3 connection with an economic development project; to provide for a notice of4 reinscription and its contents; to provide terms, conditions, and requirements; and to5 provide for related matters.6 Be it enacted by the Legislature of Louisiana:7 Section 1. R.S. 31:149(I) is hereby enacted to read as follows: 8 ยง149. Mineral rights reserved from acquisitions of land by governments or agencies9 thereof imprescriptible 10 * * *11 (I)(1) When land is acquired from any person by an acquiring authority12 or other person, through act of sale, exchange, donation, or other contract, as13 part of an economic development project pursuant to a cooperative endeavor14 agreement between the acquiring authority and the state through the15 Department of Economic Development, as evidenced in a certification by the16 secretary of the Department of Economic Development attached to the17 SB NO. 570 SLS 14RS-901 ORIGINAL Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. instrument by which the land is acquired, and a mineral right subject to the1 prescription of nonuse is reserved in the instrument by which the land is2 acquired, the prescription of nonuse shall thereafter not run against the right3 whether the title to the land remains in the acquiring authority or is4 subsequently transferred to a third person, public or private.5 (2) The prescription of nonuse shall commence to run ten years after the6 date of execution of the instrument by which the land was acquired and the7 mineral rights subject to the prescription of nonuse is reserved, unless a notice8 of reinscription is recorded before the prescription of nonuse commences to run.9 A timely recorded notice of reinscription shall continue to interrupt the running10 of the prescription of nonuse for a period of ten years from the date the notice11 of reinscription is recorded, and subsequent notices of reinscription recorded12 prior to the prescription of nonuse commencing to run shall each continue to13 interrupt the running of the prescription of nonuse for a period of ten years14 from the date the notice of reinscription is recorded. Each notice of15 reinscription shall be signed by a current owner of the reserved mineral right16 and shall contain all of the following:17 (a) The name of the original property owner transferring the land for the18 economic development project.19 (b) The name of the acquiring authority or person who acquired the20 property.21 (c) The date of execution of the original transfer instrument.22 The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by McHenry Lee. DIGEST Long (SB 570) Present law provides that mineral rights are subject to a prescription of nonuse for 10 years. Proposed law provides when land is acquired from any person by an acquiring authority through an act of sale, exchange, donation, or other contact as part of an economic development project pursuant to a certain cooperative endeavor agreement, as evidenced in a certification by the secretary of DED and a mineral right otherwise subject to the prescription of nonuse is reserved, the prescription of nonuse will not run against the right, SB NO. 570 SLS 14RS-901 ORIGINAL Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. whether the title to the land remains in the acquiring authority or is subsequently transferred to a third person, public or private. Proposed law provides that the prescription of nonuse will commence to run 10 years after the date of execution of the instrument by which the land was acquired, unless a notice of reinscription is recorded before the prescription of nonuse commences to run. Proposed law provides that a timely recorded notice of reinscription will continue to interrupt the running of the prescription of nonuse for a period of 10 years from the date the notice of reinscription is recorded, and subsequent notices of reinscription recorded prior to the prescription of nonuse commencing to run shall each continue to interrupt the running of the prescription of nonuse for a period of 10 years from the date the notice of reinscription is recorded. Proposed law requires that each notice of reinscription will include certain information. Proposed law requires the notice of reinscription to be signed by a current owner of the reserved mineral right. Effective August 1, 2014. (Adds R.S. 31:149(I))