the Office of Mineral Resources

PROGRESSION OF THE PROPOSED NEW LEASE FORM

 

 

NEW LEASE FORM

The Office of Mineral Resources is pleased to announce that the State Mineral and Energy Board approved a new State Lease Form at the October 9, 2019 Board Meeting.  The new Lease Form will apply to all leases awarded beginning with the December 2019 Lease Sale.  Additionally, the Royalty Reduction Program that was adopted by the Board at its July 10, 2019 meeting, will be effective beginning with the leases granted at the December 2019 Lease Sale.

 

SPECIAL BOARD MEETING FOR THE PROPOSED NEW LEASE FORM

The State Mineral and Energy Board will hold a Special Meeting on Tuesday, October 8, 2019 at 1:30 p.m. in the LaBelle Room on the 1st Floor of the LaSalle Building, 617 North Third Street, Baton Rouge, Louisiana, to review the Proposed New Lease Form (10/07/19 Draft).   

Comments received can be viewed on the Public Comments for the Proposed New Lease Form webpage.

Industry representatives and the public are encouraged to attend this Special Meeting and will be provided an opportunity to comment on  the Proposed New Lease Form.

Please Note:  This Special Meeting will be held in addition to the regularly scheduled State Mineral and Energy Board Meeting on Wednesday, October 9, 2019 at 9:30 a.m.

 

STATE MINERAL LEASE FORM HISTORY
History of the State Mineral Lease Form and a Discussion of the Proposed New Draft by Jamie S. Manuel
Presented at the 66th Mineral Law Institute Conference held on March 15, 2019

PROPOSED NEW LEASE FORM

SPECIAL BOARD MEETING FOR THE PROPOSED NEW LEASE FORM

The State Mineral and Energy Board will hold a Special Meeting on Tuesday, August 13, 2019 at 1:30 p.m. in the LaBelle Room on the 1st Floor of the LaSalle Building, 617 North Third Street, Baton Rouge, Louisiana, to discuss Article 9 of the Proposed New Lease Form (Proposed New Lease Form updated on July 31, 2019) and discuss any comments submitted by industry representatives and the public in reference to this specific Article.   

All comments from industry and the public on this specific Article must be submitted in PDF format to Ms. Suzanne Hyatt by close of business on August 6, 2019 by one of the following means to be considered at this Special Meeting:

  1. U.S. Mail - Ms. Suzanne Hyatt, Office of Mineral Resources, Post Office Box 2827, Baton Rouge, LA 70821-2827;
  2. Hand Delivery or Carrier Service - Ms. Suzanne Hyatt, Office of Mineral Resources, 617 North Third Street, LaSalle Building, 8th Floor, Baton Rouge, LA 70802-5428;
  3. Email - suzanne.hyatt@la.gov.

Comments received can be viewed on the Public Comments for the Proposed New Lease Form webpage.

Industry representatives and the public are encouraged to attend this Special Meeting and will be provided an opportunity to comment on this specific Article of the Proposed New Lease Form that will be addressed at this Special Meeting.

Please Note:  This Special Meeting will be held in addition to the regularly scheduled State Mineral and Energy Board Meeting on Wednesday, August 14, 2019 at 9:30 a.m.


NOTICE TO THE PUBLIC 

July 8, 2019

Articles 10, 16, 18, 20, 21, 22 and 23 of the Proposed New Lease Form will be up for review and approval by the State Mineral and Energy Board at its regular monthly meeting to be held on Wednesday, July 10, 2019 at 9:30 am


(CANCELLED) SPECIAL BOARD MEETING FOR THE PROPOSED NEW LEASE FORM 

NOTICE TO THE PUBLIC

UPDATE: THIS MEETING HAS BEEN CANCELLED

The State Mineral and Energy Board will hold a Special Meeting on Tuesday, June 11, 2019 at 1:30 p.m. in the LaBelle Room on the 1st Floor of the LaSalle Building, 617 North Third Street, Baton Rouge, Louisiana, to discuss Articles 10, 16, 18, 20, 21, 22 and 23 of the Proposed New Lease Form (Proposed New Lease Form updated on June 3, 2019) and discuss any comments submitted by industry representatives and the public in reference to these specific articles.   

All comments from industry and the public on these specific Articles must be submitted in PDF format to Ms. Suzanne Hyatt by close of business on June 4, 2019 by one of the following means to be considered at this Special Meeting:

  1. U.S. Mail - Ms. Suzanne Hyatt, Office of Mineral Resources, Post Office Box 2827, Baton Rouge, LA 70821-2827;
  2. Hand Delivery or Carrier Service - Ms. Suzanne Hyatt, Office of Mineral Resources, 617 North Third Street, LaSalle Building, 8th Floor, Baton Rouge, LA 70802-5428;
  3. Emailsuzanne.hyatt@la.gov.

Comments received can be viewed on the Public Comments for the Proposed New Lease Form webpage.

Industry representatives and the public are encouraged to attend this Special Meeting and will be provided an opportunity to comment on these specific Articles of the Proposed New Lease Form that will be addressed at this Special Meeting.

Please Note:  This Special Meeting will be held in addition to the regularly scheduled State Mineral and Energy Board Meeting on Wednesday, June 12, 2019 at 9:30 a.m.

Below is a comparison of the first draft of the 2019 Proposed New Lease Form with the 2000 State Lease Form currently being utilized:

Comparison of the first draft of the 2019 Proposed New Lease Form to 2000 Form   

2000 State Mineral Lease Form (currently in use)

MONTHLY PROGRESSION OF THE PROPOSED NEW LEASE FORM (2019)

MAY 8, 2019 STATE MINERAL AND ENERGY BOARD MEETING

Revisions to the Proposed New Lease Form updated on April 24, 2019 include changes to Articles 4, 6, 8, 11, 13, 15 and 19 that were discussed at the May 8, 2019 State Mineral and Energy Board (SMEB) Meeting, as well as notations that Articles 3, 7, 12 and 14 were preliminarily accepted as written.

APRIL 10, 2019 STATE MINERAL AND ENERGY BOARD MEETING

Revisions to the Proposed New Lease Form updated on April 24, 2019 include changes to Articles 3 and 7, and related definitions that were discussed at the April 10, 2019 State Mineral and Energy Board (SMEB) Meeting, as well as notations that Articles 1, 2, 5, and 17 were preliminarily accepted as written on March 13, 2019. 

Revisions to Articles 3 and 7 will not be discussed at the Tuesday, May 7, 2019 Special Meeting; however, Articles 3 and 7 will be presented to the SMEB Members for approval at the Wednesday, May 8, 2019 SMEB Meeting.

 

 


Proposed New Lease Form

SPECIAL BOARD MEETING FOR THE PROPOSED NEW LEASE FORM 

NOTICE TO THE PUBLIC

The State Mineral and Energy Board will hold a Special Meeting on Tuesday, June 11, 2019 at 1:30 p.m. in the LaBelle Room on the 1st Floor of the LaSalle Building, 617 North Third Street, Baton Rouge, Louisiana, to discuss Articles 10, 16, 18, 20, 21, 22 and 23 of the Proposed New Lease Form and discuss any comments submitted by industry representatives and the public in reference to these specific articles.   

All comments from industry and the public on these specific Articles must be submitted in PDF format to Ms. Suzanne Hyatt by close of business on June 4, 2019 by one of the following means to be considered at this Special Meeting:

  1. U.S. Mail - Ms. Suzanne Hyatt, Office of Mineral Resources, Post Office Box 2827, Baton Rouge, LA 70821-2827;
  2. Hand Delivery or Carrier Service - Ms. Suzanne Hyatt, Office of Mineral Resources, 617 North Third Street, LaSalle Building, 8th Floor, Baton Rouge, LA 70802-5428;
  3. Email - suzanne.hyatt@la.gov.

Comments received can be viewed on the Public Comments for the Proposed New Lease Form webpage.

Industry representatives and the public are encouraged to attend this Special Meeting and will be provided an opportunity to comment on these specific Articles of the Proposed New Lease Form that will be addressed at this Special Meeting.

Please Note:  This Special Meeting will be held in addition to the regularly scheduled State Mineral and Energy Board Meeting on Wednesday, June 12, 2019 at 9:30 a.m.

 

Below is a comparison of the 2019 Proposed New Lease Form with the 2000 State Lease Form currently being used:

Comparison of the 2019 Proposed New Lease Form to 2000 Form   

2000 State Mineral Lease Form (currently being used)

 


May 15, 2017

An individual revision report including Staff’s proposed language for the Articles of the Proposed New Lease Form can be accessed by clicking on the list below:

          

 GROUP 1  GROUP 2
 Article 11 Lease Access  Article 1 Bonus
 Article 23 Executory Contract  Article 2 Primary Term
 Article 27 Counterparts  Article 5 Force Majeure & Suspending Events
 Article 17 Title Disputes - UPDATED 6/14/17  Article 8 Lessee Reporting
 Article 26 Severability  Article 12 Lessor's Rights
 Article 24 Law and Forum & Venue  Article 15 Financial Security
 EEOC  Article 20 Notices
   Article 21 Indemnity & Hold Harmless
   Article 22 No Warranty of Title
   Article 25 Conflict (UPDATED)
   Signature Pages
   Recitals (UPDATED)

           
      
The 1st group of articles were discussed at the May 10th, 2017 meeting of the State Mineral & Energy Board. The 2nd group of articles will be discussed at the June 14, 2017 meeting of the State Mineral & Energy Board. As you will note, reference has been made to both the Existing 2000 Lease Form Version, and the August 2016 Proposed Version for each article. 

We sincerely thank all individuals who submitted comments and provided valuable input to Staff in developing the draft form in August 2016. Prior to final adoption of the Proposed New Lease Form, we are again seeking written comments from interested parties. We are asking that comments or questions regarding the groups of revisions be submitted at least one week prior to the State Mineral and Energy Board Meeting in which they will be discussed. For the 1st Group, the deadline for submission of comments or questions was May 3, 2017. For the 2nd Group, please submit comments or questions by June 7, 2017. Your comments/questions may be emailed to suzanne.hyatt@la.gov.

For specifics, please refer to the Lease Form Process schedule and the Timeline of Article Groups that will be published, opened for comment and discussed over the course of the next four months.

 


October 14, 2015
PROPOSED NEW LEASE FORM

PLEASE NOTE: FINANCIAL SECURITY PROVISION HAS BEEN REVISED ON 10-20-15

 

The State Mineral and Energy Board has authorized the Office of Mineral Resources to distribute of the following two proposed new lease form provisions and to seek comments regarding these provisions.

 

  1. Financial Security - REVISED 10-20-15
  2. General Liability Insurance

 

Full text of these provisions may be accessed by clicking here.

 

Interested parties are invited to comment on these proposals by November 10, 2015. Your comments should be directed to Suzanne.Hyatt@la.gov.

 


September 9, 2015
PROPOSED NEW LEASE FORM

The State Mineral and Energy Board has authorized the Office of Mineral Resources to distribute of the following two proposed new lease form provisions and to seek comments regarding these provisions.

 

  1. Deep Rights
  2. Assignments and Transfers

 

Full text of these provisions may be accessed by clicking here.

 

Interested parties are invited to comment on these proposals by October 14, 2015. Your comments should be directed to Suzanne.Hyatt@la.gov.

 


 

    

April 8, 2015
PROPOSED NEW LEASE FORM

The State Mineral and Energy Board has authorized the Office of Mineral Resources to distribute of the following four proposed new lease form provisions and to seek comments regarding these provisions.

 

  1. Title Disputes
  2. Offset Wells
  3. Environmental Language
  4. Plugging and Abandoning

 

Full text of these provisions may be accessed by clicking here.

 

Interested parties are invited to comment on these proposals by May 8, 2015. Your comments should be directed to Suzanne.Hyatt@la.gov.

 


 

 

February 11, 2015
PROPOSED NEW LEASE FORM

 

 

As directed by the State Mineral and Energy Board in November 2014, the staff is continuing work on finalizing the new oil and gas lease form.  The proposed new lease form contained 17 new or revised provisions.  With the Board’s approval, three of those proposed revisions—bonus, rental, and deferred development—have been removed from consideration.  Taking into consideration the comments received from industry, the staff has re-drafted the wording of the following 6 provisions:

 

 

  1. Royalty
  2. Single Payor
  3. Unit Plats
  4. Lessee Reporting
  5. Force Majeure and Suspending Events
  6. Audit Access Rights

 Full text of those provisions, may be accessed by clicking here

 

 

 

 

 

 Interested parties are invited to comment on these proposals by March 31, 2015.  Your comments should be directed to Suzanne.Hyatt@la.gov.

 

 

 

 

In the coming months, the staff will continue to work on the remaining 8 provisions and formulate recommendations for the Board.  Additional information will be posted on this web page as the Board authorizes the staff to do so. 

 


 

 

NOVEMBER 12, 2014
PROPOSED NEW LEASE FORM

Click Here to Download: Staff Recommendations to Proposed New Lease Form


JUly 9, 2014
PROPOSED NEW LEASE FORM

Click Here to Download: Summary of Comments from Interested Parties Meeting

 


JUNE 11, 2014
Mineral & Energy Board Meeting 


Click Here to download the Presentation from the Mineral & Energy Board Meeting

 


june 6, 2014
Proposed New Lease Form

 

Click here to view Proposed New Lease Form .pdf

 


 

PROPOSED NEW LEASE FORM

 

The Office of Mineral Resources again is seeking public comment on a proposed new lease form.  Input previously received from interested individuals was incorporated into the new lease form currently under consideration for presentation to the State Mineral and Energy Board.  The existing lease and preliminary new lease forms are posted for review below.  Also posted at this site are the public comments previously received and related OMR staff notes.  Our belief is that these documents will assist in evaluating this preliminary draft of the new lease form.

 

Prior to submission of the new lease form for review by the SMEB, OMR again is soliciting public comment for consideration.  All written comments regarding the proposed new lease form submitted through July 15, 2014 will be considered.  Written comments may be submitted:

 

Via e-mail to:                  OMR@la.gov

 

          Via regular mail to:  ATTN:   Rick Heck

                                      Office of Mineral Resources

                                      Post Office Box 2827

                                      Baton Rouge, Louisiana  70821-2827

 

In addition to accepting written comments, OMR's staff will host a meeting to discuss, answer questions and receive input regarding the proposed new lease form.  This meeting will be held on June 25, 2014 at 9:00 a.m. in the Griffon Room on the 1st floor of the LaSalle Building located at 617 North Third Street, Baton Rouge, Louisiana.  Those interested in discussing and providing input are encouraged to attend this meeting in addition to submitting written comments.  To avoid seating limitations, we request that interested individuals notify OMR no later than June 23, 2014, via e-mail to OMR@la.gov indicating their intent to attend.

 

Please note the following chronology of events pertaining to the proposed new lease form:

  • June 11, 2014 - OMR staff will present to the SMEB's Legal & Title Controversy Committee a comparison of the existing lease and proposed lease form.
  • June 25, 2014 - Scheduled meeting with OMR staff to seek public comment.
  • July 9, 2014 - OMR staff will present to the SMEB's Legal & Title Controversy Committee a preliminary summation of the public's comments on the proposed new lease form.
  • July 15, 2014 - Final day for submission of written comments.
  • August 13, 2014 - OMR staff will present for initial consideration to the SMEB a revised draft of the proposed new lease which incorporates relevant input from the public.

OMR's staff greatly appreciates the time and effort of those previously submitting thoughts, concerns and suggestions regarding the proposed new lease form and thanks you in advance for your continuing interest and participation in this process.

 

Proposed New Lease Form .pdf

Existing Lease Form .doc

Staff Notes Regarding New Lease Form .pdf

Previously Received Public Comments to New Lease Form .pdf