SLS 19RS-1553 ENGROSSED
2019 Regular Session
SENATE BILL NO. 242(Substitute of Senate Bill No. 179 by Senator Allain)
BY SENATOR ALLAIN
MINERALS. Provides for a continuing security interest clause in mineral leases. (8/1/19)
1 AN ACT
2 To enact R.S. 30:127(H), relative to mineral royalties; to provide for mineral leases; to
3 provide for authority of the State Mineral and Energy Board; to provide for security
4 interests on royalties of oil and gas produced on state lands; to provide for terms,
5 conditions, procedures, requirements, and effects; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 30:127(H) is hereby enacted to read as follows:
8 ยง127. Opening bids; minimum royalties; terms of lease; deposit; security
9 * * *
10 H. The board may include in any contract of lease entered into by the
11 state, any state agency, or any political subdivision after July 31, 2019, and in
12 each previously executed lease entered into that is subsequently assigned,
13 amended, or modified by agreement of the parties after July 31, 2019, a clause
14 which grants a continuing security interest in and to all as-extracted collateral
15 attributable to, produced, or to be produced, from the leased premises or from
16 lands pooled or unitized therewith, as security for the prompt and complete
17 payment and performance of the lessee's obligation to pay royalties or other
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. 242
SLS 19RS-1553 ENGROSSED
1 sums of money that may become due under the lease, as contemplated by the
2 Uniform Commercial Code.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Alan Miller.
DIGEST
SB 242 Engrossed 2019 Regular Session Allain
Proposed law authorizes the State Mineral and Energy Bd. to include in any contract of lease
entered into by the state, any state agency, or any political subdivision after 7/31/19, and in
each previously executed lease entered into that is subsequently assigned, amended, or
modified by agreement of the parties after 7/31/19, a clause which grants a continuing
security interest in and to all as-extracted collateral attributable to, produced, or to be
produced, from the leased premises or from lands pooled or unitized therewith, as security
for the prompt and complete payment and performance of the lessee's obligation to pay
royalties or other sums of money that may become due under the lease, as contemplated by
the UCC.
Effective August 1, 2019.
(Adds R.S. 30:127(H))
Page 2 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.