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

Introduction


D. Overview of the State Mineral Lease Acquisition Process
   
1. Background

Leases and conveyances involving minerals or mineral rights owned by the state of Louisiana are confected only after prior public notice and public bidding. See LSA-Const. Art. 9, §5. Specifically, state mineral leases and state agency mineral leases are subject to public notice and public bidding. LSA-R.S. 30:121, et seq.; LSA-R.S. 30:151, et seq. In compliance with these legal mandates, the State Mineral & Energy Board holds public state mineral lease sales on a monthly basis, generally the second Wednesday of each month unless otherwise noticed, and the entire state mineral lease acquisition process revolves around these sales.

2.

Nine (9) General Steps

There are nine (9) general steps in the state mineral lease acquisition process:

(1)

Registration

   
(2)

Pre-nomination research

   
(3)

Nomination of state or state agency lands or water bottoms for mineral lease

   
(4)

Examination and evaluation of nominations for state and state agency mineral leases

   
(5)

Advertisement of state and state agency tracts offered for mineral lease

   
(6)

Submission of bids on state and state agency tracts offered for mineral lease

   
(7)

Examination and evaluation of bids for state and state agency mineral leases

   
(8)

Award of state and state agency mineral leases and options at the state mineral lease sale

   
(9)

Issuance and execution of state and state agency mineral lease contracts after the state mineral lease sale

Each general step has its own set of procedures and requirements which are outlined in detail in separate parts of these guidelines.

3.

Timeline

The state mineral lease acquisition process from nomination (step 3) to award at the state mineral lease sale (step 8) takes approximately eighty (80) days. See State Mineral Board Resolution dated July 14, 2004. Nomination (step 3), nomination examination and evaluation (step 4), advertisement (step 5), bid submission (step 6), and bid examination and evaluation (step 7), precede award (step 8) approximately as follows:

MONTH 1 MONTH 2 MONTH 3 MONTH 4
(3)(4) (5)   (6&7)(8)

The State Mineral & Energy Board, through the Office of Mineral Resources, publishes a schedule that sets forth the dates of the monthly state mineral lease sales, as well as the deadlines for application, advertisement and bid submission. This schedule is available online via http://www.dnr.louisiana.gov/mineralboard.

4.

Location of State Mineral Lease Sales

The State Mineral & Energy Board holds state mineral lease sales in the LaBelle Room, also known as the Conservation and Mineral Resources Hearing Room, located on the 1st Floor of the LaSalle Building at 617 North Third Street, Baton Rouge, Louisiana.