RDCSB242 341 3047
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
SB 242 Engrossed 2019 Regular Session Allain
Proposed law authorizes the State Mineral and Energy Board to include in any lease entered
into by the state, any state agency, or any political subdivision after July 31, 2019, 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 Uniform Commercial Code.
Effective Aug. 1, 2019.
(Adds R.S. 30:127(H))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Natural Resources and
Environment to the engrossed bill:
1. Remove the provision that made the bill applicable to leases that are
subsequently assigned, amended, or modified by agreement of the parties after
July 31, 2019.
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