HLS 20RS-632 ENGROSSED 2020 Regular Session HOUSE BILL NO. 227 BY REPRESENTATIVE COUSSAN (On Recommendation of the Louisiana State Law Institute) MINERALS: Provides relative to the nature of production payments 1 AN ACT 2To amend and reenact R.S. 31:212.21, relative to production payments; to eliminate 3 redundant terminology; to provide relative to the nature and classification of 4 production payments; and to provide for related matters. 5Be it enacted by the Legislature of Louisiana: 6 Section 1. R.S. 31:212.21 is hereby amended and reenacted to read as follows: 7 ยง212.21. Nonpayment of production payment or royalties; notice prerequisite to 8 judicial demand 9 If the owner of a mineral production payment created out of a mineral lessee's 10 interest or a royalty owner other than a mineral lessor seeks relief for the failure of 11 a mineral lessee to make timely or proper payment of royalties or the production 12 payment, he must give his obligor written notice of such failure as a prerequisite to 13 a judicial demand for damages. Page 1 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 20RS-632 ENGROSSED HB NO. 227 DIGEST The digest printed below was prepared by Louisiana State Law Institute. 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)] HB 227 Engrossed 2020 Regular Session Coussan Abstract: Provides for clarification of the nature of production payments and eliminates redundancy in terminology. Present law requires written notice of the nonpayment of a production payment to be provided prior to a judicial demand for damages. Proposed law retains present law but eliminates the linguistic redundancy and clarifies the application of present law by stating explicitly that the interest at issue is one created out of a mineral lessee's interest. (Amends R.S. 31:212.21) Page 2 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions.