RÉSUMÉ DIGEST
ACT 179 (SB 404) 2016 Regular Session Peacock
New law creates the Sale of Mineral Rights by Mail Solicitation Act.
Provides that the act does not apply to a sale of mineral rights by mail solicitation contracted
subsequent to a prior personal contact that included a meaningful exchange between the
transferor and the transferee.
Requires a disclosure on an instrument evidencing a sale of mineral rights by mail
solicitation.
Provides that when an instrument evidencing the sale of mineral rights by mail solicitation
contains the required disclosure, the transferor may rescind the agreement within 60 days
after the date on which the transferor signs it. If the instrument does not contain the required
disclosure, the transferor may rescind the agreement within three years after the date on
which the transferor signs it.
Provides that when the instrument evidencing the sale of mineral rights by mail solicitation
contains the required disclosure, a third person acquiring an interest in mineral rights from
the transferee is subject to the effect of a notice of rescission filed within 90 days after the
date of the filing of the instrument.
Provides that rescission will not be effective against a party to make royalty payments until
60 days after that party is furnished with a certified copy of the notice of rescission.
Requires a transferor who exercises the right to rescind to return any payments made by the
transferee within 60 days.
Requires that when the right to rescind is exercised, the transferee must return any royalties
or other payments, including interest, received by the transferee to the transferor within 60
days.
Provides that when the instrument does not contain the disclosure requirement, the transferee
will be liable for attorney and court costs and allows the court to award further damages of
an amount up to twice the sum of royalties and other payments received by the transferee.
Effective upon signature of the governor.
(Adds R.S. 9:2991.1 - 2991.11)