How-To Guide

How to Report Force Majeure Online
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How to Report Force Majeure

At the State Mineral & Energy Board meeting on August 10, 2005, the Board adopted a policy Adobe Acrobat Format (PDF)concerning lease maintenance as a result of a Force Majeure event.

The following are the procedures for reporting force majeure:
  1. Read your lease. Some older lease forms may not have any Force Majeure language or may not have language applicable to your particular situation. Some older leases require action within 60 days instead of 90 days.  A copy of the state lease form can be found on our website at www.dnr.louisiana.gov in the public SONRIS connection.

  2. Within 90 (or 60) days of the event, report the incident to the Office of Mineral Resources using the ONLINE FORCE MAJEURE reporting system.  If you have any questions on how to complete the report contact:

  3. Charles Bradbury (225) 342-9199

  4. Followed by written notice to:

  5. Office of Mineral Resources
    LaSalle Building, 8th Floor
    617 N. 3rd Street
    Baton Rouge, LA 70802

    Or,

    P.O. Box 2827
    Baton Rouge, LA 70812

  6. Written notice should include:

    1. A description of how the lease(s) was/were maintained at the time of the event.
    2. A list all leases affected by the event.
    3. The nature of the event.
    4. The resulting effect which prevents the commencement or continuation of lease operations or production.
    5. The duration of the event.
    6. The estimated time necessary to clear up the effects or the fortuitous event.

    7.  A brief economic fiscal statement stating the affect the force majeure condition has on the state:

      a.     For producing wells submit an estimate of deferred royalty payments as a result of wells shut-in and include a copy of the last 12 months of royalty payment reports.

      b.     For wells where production was off or not established at the time of the event prepare and Operator impact statement including comments on the effect to the state.

    8. An Affadavit attesting to the accuracy of the data submitted.

    9. Attach a copy of the Online Report Spreadsheet
  7. If a major catastrophic event occurs, such as a hurricane, please complete the Force Majeure Spreadsheet Microsoft Excel Format (XLS) with the basic information identifying all wells and units that were producing at the time of the event. Othewise complete the ONLINE FORCE MAJEURE reporting system and follow the steps mentioned.  This action is requested to further assist the staff in making sure all leases that fall under the force majeure event are identified.

  8. Within a reasonable time of the initial notification, the lessee or operator shall send to the Office of Mineral Resources all evidence supporting the cause of the event including but not limited to: pictures, reports, damage assessments, correspondence between lessee/operator and third parties affecting said event, etc. These documents should be properly labeled showing the issues relating to the cause of the force majeure.

  9. The lessee/operator may be required to submit rentals payments, deferred development payment or in-lieu royalty payments on any lease(s) that contain such language that if available to maintain the lease in the absence of production or downhole operations.

  10. In the event the lease does not contain force majeure language or that the particular fortuitous event is not covered by the existing lease language, the lease will be maintained temporarily until the lessee/operator amends the lease to reflect the force majeure language adopted by the Mineral Board at that August 10, 2005 meeting Adobe Acrobat Format (PDF).

  11. The staff will follow up with additional steps required to maintain the lease.
  12. On the first (1st) each succeeding month, the Lessee/operator is required to report the status of all leases affected by the force majeure event until all leases are maintained by either production or downhole operations.

If you would like to read online or download a copy of the force majeure and relevant forms please see the following:

 

Force Majeure Policy, 8/10/2005 Adobe Acrobat Format (PDF)

ONLINE FORCE MAJEURE REPORT

Force Majeure Language for lease amendment June 6, 2012 Microsoft Word Format (DOC)

Sample Excel Spreadsheet for reporting large numbers of force majeure affect leases. Microsoft Excel Format (XLS)

Affidavit for force majeure report Microsoft Word Format (DOC)

If you have any questions about this topic, contact Charles Bradbury at (225) 342-9199.