GREEN SHEET REDIGEST
HB 24 2024 Third Extraordinary Session Geymann
MINERALS/MINERAL BOARD: Provides for the leasing of state property for
energy-related purposes (Item #17)
DIGEST
Present law authorizes the State Mineral and Energy Board to lease state lands, water bodies,
and water bottoms for the development and production of oil, gas, and alternative energy
sources (R.S. 30:124(B)) and for injection, storage, transportation, shipment, and withdrawal
of oil, natural gas, liquid hydrocarbons, and carbon dioxide in underground reservoirs, the
construction and use of related surface facilities and tanks, and for the use of caverns in salt
domes for the injection, storage, transportation, shipment, and withdrawal of oil, natural gas,
liquid hydrocarbons, and carbon dioxide and for the construction and use of related surface
facilities (R.S. 30:148.2).
Proposed law retains present law and references to the board's authority to reflect present
law. (R.S. 30:124(B))
Proposed law classifies payments due for the lease of public lands as taxes rather than rent
for purposes of calculating estate expenses under federal law. (R.S. 30:124(G))
Present law requires the payment of a $400 fee for applications to the office of mineral
resources proposing the lease of public lands. (R.S. 30:125(A))
Proposed law increases this fee from $400 to $600. (R.S. 30:125)
Present law prohibits the State Mineral and Energy Board from offering for lease an area
greater than 5,000 acres. (R.S. 30:126(A))
Proposed law limits this prohibition to mineral leases only. (R.S. 30:126(A))
Present law requires that, if the State Mineral and Energy Board decides to offer particular
public property for lease, the board must advertise the offer prior to the opening of bids. (R.S.
30:126(A))
Proposed law retains present law.
Present law authorizes the State Mineral and Energy Board to charge a fee of $20 when a
proof of publication is requested. (R.S. 30:126(A))
Proposed law increases this fee from $20 to $35. (R.S. 30:126(A))
Present law establishes minimum royalties to be stipulated in any lease executed by or on
behalf of any school board, and minimum royalties to be stipulated in any other lease by the
State Mineral and Energy Board. (R.S. 30:127(A) and (B))
Proposed law limits the present law minimum royalty requirements to mineral leases only.
(R.S. 30:127(A) and (B))
Present law requires that each lease include a clear description of the leased property and
contain a clause allowing the state to collect its royalty in kind. (R.S. 30:127(C))
Proposed law limits these requirements to mineral leases only. (R.S. 30:127(C))
Present law provides a process that authorizes the board to immediately offer a lease for
competitive bidding. Specifies the board retains the right to reject bids. Prohibits any lease
Page 1 of 3
Prepared by Jacob Wilson. in excess of 5,000 acres, except wind energy production leases which cannot exceed 25,000
acres. (R.S. 30:127(E))
Proposed law retains present law and adds an exception to limit solar energy production
leases to 35 acres. (R.S. 30:127(E))
Present law allows the State Mineral and Energy Board to include a clause in any lease that
grants a continuing security interest in as-extracted collateral attributable to the leased
premises to secure payment of the lessee's obligations to pay royalties and other sums due
under the lease. (R.S. 30:127(H))
Proposed law authorizes this clause for continuing security on any collateral rather than just
as-extracted collateral. (R.S. 30:127(H))
Present law authorizes the State Mineral and Energy Board to charge a fee of $100 for the
assignment or transfer of a lease granted by the board. (R.S. 30:128(A))
Proposed law increases this fee from $100 to $175. (R.S. 30:128(A))
Present law requires leases entered into by the State Mineral and Energy Board to contain a
"Pugh clause". (R.S. 30:129(B)(3))
Proposed law limits this requirement to mineral leases only. (R.S. 30:129(B)(3))
Present law requires a cash deposit of $50 to accompany any application for the lease of
public lands with the right to erect storage and transportation facilities, which is returned to
the applicant, minus the cost of advertising, if they are unsuccessful at auction. (R.S.
30:148.3)
Proposed law increases the required cash deposit from $50 to $100. (R.S. 30:148.3)
Present law establishes the information that must be provided in an application for the lease
of public lands with the right to erect storage and transportation facilities. (R.S. 30:148.3)
Proposed law retains present law and adds that the applicant must also provide all other
information required by the lessor. (R.S. 30:148.3)
Proposed law establishes that the provisions of Subpart A-2 of Part II of Chapter 2 of Title
30, regarding leases with the right to erect storage and transportation facilities, do apply to
leases by the State Mineral and Energy Board for the injection, storage, transportation,
shipment, and withdrawal of oil, natural gas, liquid hydrocarbons, and carbon dioxide in
underground reservoirs; the construction and use of related surface facilities and tanks; the
use of caverns in salt domes for the injection, storage, transportation, shipment, and
withdrawal of oil, natural gas, liquid hydrocarbons, and carbon dioxide; and the construction
and use of related surface facilities (R.S. 30:148.2). (R.S. 30:148.10)
Present law requires that all production payments received by the office of mineral resources
pursuant to an operating agreement be deposited into the Bond Security and Redemption
Fund and thereafter that 25% of all such production payments be credited to the Mineral and
Energy Operation Fund for appropriation to the Dept. of Energy and Natural Resources. (R.S.
30:209)
Proposed law changes these requirements to apply to all revenues collected by the office of
mineral resources pursuant to operating agreements, rather than to production payments
alone. (R.S. 30:209)
Effective January 1, 2025.
(Amends R.S. 30:124(B), 125, 126(A), 127(A)(intro. para.), (B)(intro. para.), (C), (E), and
(H), 128(A), 129(B)(3), 148.3, and 209(4)(b); Adds R.S. 30:124(G) and 148.10)
Page 2 of 3
Prepared by Jacob Wilson. Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Natural Resources and
Environment to the original bill:
1. Add an exception to limit solar energy production leases to 35 acres.
2 Make technical changes.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Natural Resources to the
engrossed bill
1. Make technical changes.
Page 3 of 3
Prepared by Jacob Wilson.