Office of Mineral Resources

Leasing Manual

How to Acquire a Mineral Lease on State and State Agency Lands and Water Bottoms in the State of Louisiana

 

Published 2007 Revised 9-4-2015                                                                      View Leasing Manual in Printable PDFAdobe Acrobat (PDF)
                                                                            


Contents

    1. Introduction
      1. Application and Scope of Guidelines
      2. Official State and State Agency Lease Forms
      3. Administration of the State Mineral Leasing Process
        1. State Mineral & Energy Board, Department of Natural Resources
        2. Office of Mineral Resources, Department of Natural Resources
      4. Overview of the State Mineral Lease Acquisition Process
        1. Background
        2. Nine (9) General Steps
        3. Timeline
        4. Location of State Mineral Lease Sales

    1. Step 1: Registration
      1. Applicant Registration
      2. Prospective Leaseholder Registration

    1. Step 2: Pre-Nomination Research 
      1. Category Research
        1. Seven (7) Categories of State Lands and Water Bottoms
          1. Offshore
          2. Inland
          3. Louisiana Department of Wildlife and Fisheries Area/State Owned
          4. School Indemnity Lands
          5. Tax Adjudicated Lands
          6. Vacant State Lands
          7. White Lake
        2. Three (3) Categories of State Agency Lands and Water Bottoms
          1. State Agency Lands
          2. Louisiana Department of Wildlife and Fisheries Area/LDWF Owned
          3. Section 16 School Lands
      2. Title Research
        1. Title Records
          1. State Land Office, Division of Administration
          2. Parish Clerks of Court
          3. Parish Tax Assessors
        2. Ownership of Surface and Mineral Rights
        3. Legal Areas
        4. Freeze Statute Areas
      3. Availability Research
        1. Conditions Indicating Availability for State Mineral Lease
        2. Availability Records
          1. SONRIS
          2. Louisiana State Leases CD/ROM
          3. Notice of Publication
          4. Official Files
          5. Official State Mineral Board Minute Book
          6. Official State and Parish Journals

    1. Step 3: Nomination of State or State Agency Lands or Water Bottoms for Mineral Lease 
      1. Summary of the Nomination Process
      2. Four (4) Steps in the Nomination Process
        1. Select the State Mineral Lease Sale for Which the State or State Agency Lands or Water Bottoms Shall be Nominated for Mineral Lease
        2. Observe Nomination Restrictions
          1. Use the Louisiana Coordinate System of 1927
          2. Nominate Acreage from Only One (1) Lands and Water Bottoms Category in a Single Nomination
          3. Nominate Acreage Bearing the Same Ownership Interest Percentage in a Single Nomination
          4. Nominate 2,500 Acres or Less of State or State Agency Lands or Water Bottoms in a Single Nomination
          5. Enclose the Nominated Acreage in Square or Rectangle Having No Side Larger Than Three and One Half (3½) Miles (18,480.00 Feet)
          6. Abut the Nominated Acreage Against the Boundary of any Adjacent Existing State Mineral Lease, State Operating Agreement, State Exclusive Geophysical Agreement II or III, or Nomination
        3. Prepare the Nomination Packet
          1. Letter of Application
          2. Written Property Description
          3. Plat
          4. .dxf File (If Applicable)
          5. Nomination DVD or CDROM
          6. Category Documentation (If Applicable)
          7. Title Documentation (If Applicable)
          8. Nomination Fee Payment
        4. Submit the Nomination Packet

    1. Step 4: Examination and Evaluation of Nominations for State and State Agency Mineral Leases 
      1. Summary of the Nomination Examination and Evaluation Process
      2. Nominations that Do Not Comply
      3. Nominations that are Rejected and Returned
      4. Withdrawal of a Nomination Prior to Advertisement

    1. Step 5: Advertisement of State and State Agency Tracts Offered for Mineral Lease 
      1. Summary of the Advertisement Process
      2. Advertisement Notices
        1. Bid on an Entire Tract or a Portion of a Tract
        2. Specify a Primary Term
        3. Offer a Cash Payment
        4. Offer an Annual Rental
        5. Offer a Royalty
        6. Offer Additional Consideration
        7. Specify the Joint Bid Percent Interests
        8. Ten Percent (10%) Leasing Fee Pursuant to LSA-R.S. 30:124
        9. Thirty Dollars ($30.00) Per Acre Payment by State Mineral Lessees Pursuant to LSA-R.S. 30:136.1(D) and Act 362 of the Regular Legislative Session
        10. Bid Submission Conditions
        11. Mineral Lease Award Conditions
        12. Other Applicable Regulations
        13. Access by the Public
      3. Advertisement in the Official State and Parish Journals
      4. Informal Advertisement in SONRIS, Louisiana State Leases CD/ROM, and Notice of Publication
      5. Request for Proof of Publication
      6. Withdrawal of a Nomination After Advertisement
      7. Protesting the State Mineral & Energy Board Leasing of a State or State Agency Tract

    1. Step 6: Submission of Bids on State and State Agency Tracts Offered for Mineral Lease 
      1. Summary of the Bid Submission Process
      2. Three (3) Steps in the Bid Submission Process
        1. Confirm Registered as a Prospective Leaseholder
        2. Prepare the Bid Packet
          1. Bid Form
          2. Portion Bid Written Property Description
          3. Portion Bid Plat
          4. Portion Bid .dxf File (If Applicable)
          5. Portion Bid DVD or CDROM
          6. Cash Payment
          7. Ten Percent (10%) Leasing Fee Pursuant to LSA-R.S. 30:124
          8. Thirty Dollars ($30.00) Per Acre Payment by State Mineral Lessees Pursuant to LSA-R.S. 30:136.1(D) and Act 362 of the 2015 Regular Legislative Session
        3. Submit the Sealed Bid Packet

    1. Step 7: Examination and Evaluation of Bids for State and State Agency Mineral Leases 
      1. Summary of the Bid Examination and Evaluation Process

    1. Step 8: Award of State and State Agency Mineral Leases and Options at the State Mineral Lease Sale 
      1. Summary of the Award Process
      2. Options for State or State Agency Mineral Lease
      3. Competitive Bidding
      4. Return of Rejected Bids and Bids on Withdrawn Tracts
      5. Publication of State and State Agency Mineral Leases Awarded

    1. Step 9: Issuance and Execution of State and State Agency Mineral Lease Contracts After the State Mineral Lease Sale 
      1. Summary of the Lease Contract Issuance and Execution Process
      2. Payment of the Ten Percent (10%) Leasing Fee and the Thirty Dollars ($30.00) Per Acre Payment
      3. Issuance of State and State Agency Mineral Lease Contracts
      4. Lessee Receipt, Execution, Recordation, and Timely Return of Lease Contract within Twenty (20) Days
      5. Request for Proof of Timely Execution of Lease
      6. Request for Proof of No Conflict or Overlap
      7. Request for Proof of Three-Mile Boundary

  1. Exhibit: Reference Table of Bid Requirements and Additional Information