2019 Regular Session ENROLLED
SENATE BILL NO. 242(Substitute of Senate Bill No. 179 by Senator Allain)
BY SENATOR ALLAIN AND REPRESENTATIVES BAGLEY, BARRAS,
BOURRIAQUE, TERRY BROWN, CARMODY, CREWS, FOIL,
HORTON, MCFARLAND, MCMAHEN, JIM MORRIS AND PYLANT
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 lease entered into by the state, any state
11 agency, or any political subdivision after July 31, 2019, a clause which grants
12 a continuing security interest in and to all as-extracted collateral attributable
13 to, produced, or to be produced, from the leased premises or from lands pooled
14 or unitized therewith, as security for the prompt and complete payment and
15 performance of the lessee's obligation to pay royalties or other sums of money
16 that may become due under the lease, as contemplated by the Uniform
17 Commercial Code. The board may subordinate the state's security interest in
18 any amounts in excess of the royalties and other sums due to the state, to the
19 security interest of one or more lenders. However, no less than thirty days prior
20 to entering into the first lease that contains a clause granting a continuing
21 security interest under the provisions of this Section, the board shall submit the
ACT No. 403
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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. 242 ENROLLED
1 proposed clause language to the House Committee on Natural Resources and
2 Environment and the Senate Committee on Natural Resources for review.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.