SLS 18RS-438 ORIGINAL
2018 Regular Session
SENATE BILL NO. 328
BY SENATOR ALLAIN
MINERALS. Provides that certain mineral royalties due to the state are not rent. (8/1/18)
1 AN ACT
2 To amend and reenact R.S. 31:123, relative to mineral royalties; to provide for what is rent;
3 to provide that the in-kind royalty portion or monetary equivalent due to the state is
4 not rent; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 31:123 is hereby amended and reenacted to read as follows:
7 ยง123. Rent and the obligation to make timely payment thereof
8 Payments to the lessor for the maintenance of a mineral lease without drilling
9 or mining operations or production or for the maintenance of a lease during the
10 presence on the lease or any land unitized therewith of a well capable of production
11 in paying quantities, and royalties paid to the lessor on production are rent. The
12 state's in-kind royalty portion or monetary equivalent is not rent. A mineral
13 lessee is obligated to make timely payment of rent according to the terms of the
14 contract or the custom of the mining industry in question if the contract is silent.
Page 1 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 328
SLS 18RS-438 ORIGINAL
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by J. W. Wiley.
DIGEST
SB 328 Original 2018 Regular Session Allain
Present law provides that royalties paid to the state on production are rent.
Proposed law retains present law but exempts the state's in-kind royalty portion or monetary
equivalent from what is rent.
Effective August 1, 2018.
(Amends R.S. 31:123)
Page 2 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.