Louisiana 2020 2020 Regular Session

Louisiana House Bill HB227 Engrossed / Bill

                    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)
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CODING:  Words in struck through type are deletions from existing law; words underscored
are additions.