Louisiana 2019 2019 Regular Session

Louisiana Senate Bill SB115 Engrossed / Bill

                    SLS 19RS-335	REENGROSSED
2019 Regular Session
SENATE BILL NO. 115
BY SENATOR WARD 
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
MINERALS.  Provides relative to exercise of rights and conducting of operations arising
from co-ownership of land and mineral rights. (8/1/19)
1	AN ACT
2 To amend and reenact R.S. 31:164, 166, and 175, relative to mineral rights and operations;
3 to provide relative to co-ownership; to provide relative to the rights and
4 consequences arising from co-ownership of land and mineral rights; to provide
5 relative to the creation of servitudes and leases; to provide relative to the exercise of
6 rights and the conducting of operations; to provide certain terms, conditions, consent
7 requirements, procedures, and effects; and to provide for related matters. 
8 Be it enacted by the Legislature of Louisiana:
9 Section 1.  R.S. 31:164, 166, and 175 are hereby amended and reenacted to read as
10 follows:
11 §164. Creation of mineral servitude by co-owner of land
12	A co-owner of land may create a mineral servitude out of his undivided
13 interest in the land, and prescription commences from the date of its creation. One
14 who acquires a mineral servitude from a co-owner of land may not exercise his right
15 without the consent of co-owners owning at least an undivided eighty seventy-five
16 percent interest in the land, provided that he has made every effort to contact such
17 co-owners and, if contacted, has offered to contract with them on substantially the
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 115
SLS 19RS-335	REENGROSSED
1 same basis that he has contracted with another co-owner. A co-owner of the land
2 who does not consent to the exercise of such rights has no liability for the costs of
3 development and operations, except out of his share of production.
4	*          *          *
5 §166.  Granting of mineral lease by co-owner of land
6	A co-owner of land may grant a valid mineral lease or a valid lease or permit
7 for geological surveys, by means of a torsion balance, seismographic explosions,
8 mechanical device, or any other method as to his undivided interest in the land but
9 the lessee or permittee may not exercise his rights thereunder without consent of
10 co-owners owning at least an undivided eighty seventy-five percent interest in the
11 land, provided that he has made every effort to contact such co-owners and, if
12 contacted, has offered to contract with them on substantially the same basis that he
13 has contracted with another co-owner.  A co-owner of the land who does not consent
14 to the exercise of such rights has no liability for the costs of development and
15 operations or other costs, except out of his share of production.
16	*          *          *
17 §175.  Co-owner of mineral servitude may not operate independently
18	A co-owner of a mineral servitude may not conduct operations on the
19 property subject to the servitude without the consent of co-owners owning at least
20 an undivided eighty seventy-five percent interest in the servitude, provided that he
21 has made every effort to contact such co-owners and, if contacted, has offered to
22 contract with them on substantially the same basis that he has contracted with
23 another co-owner.  Operations as used in this Section shall include geological
24 surveys, by means of a torsion balance, seismographic explosions, mechanical
25 device, or any other method.  A co-owner of the servitude who does not consent to
26 such operations has no liability for the costs of development and operations except
27 out of his share of production.
28 Section 2. The provisions of this Act shall have prospective application only and
29 shall apply only to contracts entered into on or after the effective date of this Act.
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Coding: Words which are struck through are deletions from existing law;
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The original instrument was prepared by Jerry G. Jones. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Tammy Crain-Waldrop.
DIGEST
Present law relative to the Louisiana Mineral Code provides for rights, consequences, and
operations arising from co-ownership of land and mineral rights.
Present law provides that one who acquires a mineral servitude from a co-owner of land may
not exercise his right without the consent of co-owners owning at least an undivided 80%
interest in the land. Proposed law changes 80% to 75%.
Present law provides that a co-owner of land may grant a valid mineral lease or a valid lease
or permit for geological surveys as to his undivided interest in the land, but the lessee or
permittee may not exercise his rights without consent of co-owners owning at least an
undivided 80% interest in the land. Proposed law changes 80% to 75%.
Present law provides that a co-owner of a mineral servitude may not conduct operations on
the property subject to the servitude without the consent of co-owners owning at least an
undivided 80% interest in the servitude. Proposed law changes 80% to 75%. 
Provides that the provisions of the proposed law will only have prospective application and
will apply only to contracts entered into on or after the effective date of this Act.
Effective August 1, 2019.
(Amends R.S. 31:164, 166, and 175)
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
1. Adds language that the provisions will only have prospective application and
will apply only to contracts entered into on or after the effective date of this
date.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.