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

 

Step 2: Pre-Nomination Research

 

B. Title Research

A party seeking to nominate state or state agency lands or water bottoms for mineral lease shall conduct title research prior to nomination to determine and confirm that the state or state agency, as applicable, owns and/or claims the lands or water bottoms. Certain title documentation and information is required to be submitted upon nomination, as set forth later in these guidelines. LAC 43:I.907.

1.          Title Records   

The following is an illustrative list of public records custodians that maintain title records. Any requests for further information or questions concerning the referenced title records shall be submitted to the custodian directly.

a.          State Land Office, Division of Administration

The State Land Office maintains public records including maps that provide information as to state or state agency ownership and/or claiming of lands such as water bottoms, School Indemnity Lands, Tax Adjudicated Lands, Vacant State Lands, State Agency Lands, and Section 16 School Lands. These records include:

(i)

A minimal amount of field survey information and title abstract data for selected locations, as maintained by the Titles and Survey Section in connection with the Titles and Boundaries Sub-Program. See LSA-R.S. 41:1131, et seq.
   
(ii)

An inventory of immovable property owned or leased by the state, its departments and agencies, as maintained by the Records Section in connection with the State Land and Building System (SLABS) Inventory Sub-Program. See LSA-R.S. 39:11, et seq.
   
(iii)

Official U. S. and state historical land title information, as maintained by the Records Section in connection with the Historical Land Title Records Sub-Program. See LSA-R.S. Title 41, Chapters 1–6.
   
(iv)

Official tax adjudication documents comprising adjudications, redemptions, cancellations, and sales relating to lands seized in Louisiana for the non-payment of property taxes, as maintained by the Records Section in connection with the Tax Adjudicated Land Records Sub-Program. See   LSA-R.S. 47:1991, 2186, 2194, 2221, 2230, 2251, 2253, and 2260.

The State Land Office is located in the Claiborne Building at 1201 North Third Street, 1st Floor, Suite G-150, Baton Rouge, Louisiana, 70802. Its phone number is (225) 342-4578 and its web address is www.doa.louisiana.gov/slo.

Note:   The Department of Transportation and Development, Real Estate Section, Property Management Unit, located at 8545 United Plaza Blvd. Suite 379, Baton Rouge, Louisiana, 70809, maintains public records that provide some information as to state ownership and/or claiming of road beds. However, these public records are not title records per se and title researchers seeking information on title to road beds are directed to the public records maintained by the various parish clerks of court.

b.         Parish Clerks of Court 

These officials maintain public records, particularly conveyance records, which provide information as to state and state agency ownership of lands and water bottoms located in the parish.

c.          Parish Tax Assessors 

These officials maintain public records, particularly area maps and tax rolls, which provide information as to state and state agency ownership of lands and water bottoms located in the parish.

2.          Ownership of Surface and Mineral Rights

Since 1921, the Louisiana Constitution has provided that the mineral rights on property sold by the state shall be reserved. LSA-Const. Art. 9, §4 (formerly LSA-Const.1921. Art. 4, §2).

a.          Documentation and Information Requirements

Determine whether the state or state agency owns the surface and mineral rights or the mineral rights only in the lands or water bottoms to be nominated. If the state or state agency owns the minerals rights only, the nominating party shall provide a copy of the title deed (patent preferred, but if no patent issued, the sale deed or procès verbal of the sale) whereby the state or state agency severed its ownership of the surface rights and the surface owner acquired his interest in the property. LAC 43:I.907.

3.          Legal Areas

Title to certain state or state agency lands or water bottoms may have been established by compromise without litigation, compromise during the course of litigation, or adjudication in a court of law. For state mineral leasing purposes, state or state agency lands or water bottoms subject to such compromise or adjudication are viewed as a “Legal Area.”

a.          Documentation and Information Requirements

Determine whether the state or state agency lands or water bottoms to be nominated include a Legal Area.  If they do, the nominating party shall provide a copy of the compromise instrument(s) or judgment(s) that establish(es) the state or state agency ownership interest. LAC 43:I.907.

Note:  If the compromise or judgment provides that the state or state agency ownership interest in the lands or water bottoms is less than one hundred percent (100%), the current policy is to require that such lands or water bottoms be nominated separately. Further, if the compromise or judgment breaks down the acreage into separately identified parcels and the state or state agency is allocated a different ownership interest percentage in each, the current policy is to require that each separately identified parcel of acreage wherein the state or state agency is allocated a different ownership interest percentage be nominated separately.

4.          Freeze Statute Areas

Title to the mineral rights underlying certain state or state agency lands or water bottoms may be impacted by LSA-R.S. 9:1151, state legislation commonly known as the “Freeze Statute,” or by LSA-R.S. 9:1152, state legislation also having a “freezing” effect on mineral rights ownership.

a.          LSA-R.S. 9:1151

LSA-R.S. 9:1151 provides that when a change occurs in the ownership of land or water bottoms as a result of the action of navigable water, the new owner, including the state of Louisiana and any state agency, takes ownership of the lands or water bottoms subject to and encumbered with any oil, gas and mineral lease covering and affecting such lands or water bottoms, and subject to the mineral and royalty rights of the lessors, the right of the lessee or owners, and the right of the mineral and royalty owners. The statute’s effect is to “freeze” ownership of the mineral rights underlying the state or state agency lands or water bottoms in a party or parties other than the state or the state agency as long as the encumbering oil, gas and mineral lease is in effect. For state mineral leasing purposes, state or state agency lands or water bottoms impacted by LSA-R.S. 9:1151 are viewed as a “Freeze Statute Area.”

i.           Documentation and Information Requirements

If the state or state agency lands or water bottoms to be nominated have underlying minerals rights “frozen” in a party or parties other than the state or state agency pursuant to LSA-R.S. 9:1151, the nominating party shall provide the following:

1)

A copy of the private mineral lease that “freezes” ownership of the mineral rights in a party or parties other than the state or state agency. LAC 43:I.907.
   
2)

Supporting documentation that evidences that the private mineral lease is currently held by production. LAC 43:I.907.

b.         LSA-R.S. 9:1152

LSA-R.S. 9:1152 provides that when the state of Louisiana previously acquired or acquires lands from an agency or political subdivision of the state due to the action of navigable water occurring after the effective date of the Louisiana State Constitution of 1921 and the lands are not subject to a mineral lease granted by the state of Louisiana on the effective date of the statute [September 3, 1984] and the lands are subject to a mineral lease granted by such agency or political subdivision, or its governmental predecessor, on the effective date of the statute [September 3, 1984], the state of Louisiana grants to the agency or political subdivision, or its governmental successor, from which it acquired or acquires such lands an imprescriptible and inalienable mineral servitude affecting all minerals underlying the lands so acquired and any such servitude shall be treated as having been granted on the date of the change in ownership of such lands. The statute’s effect is to “freeze” ownership of the mineral rights underlying the state lands in the state agency. For state mineral leasing purposes, state lands impacted by LSA-R.S. 9:1152 are viewed as a “Freeze Statute Area.”

i)          Documentation and Information Requirements

If the state lands to be nominated have underlying mineral rights “frozen” in a state agency pursuant to LSA-R.S. 9:1152, the nominating party shall provide the following:

1)

Evidence that the state of Louisiana acquired the lands from an agency or political subdivision of the state due to the action of navigable water occurring after the effective date of the Louisiana State Constitution of 1921.  LAC 43:I.907.
   
2)

Evidence that the lands were not subject to a mineral lease granted by the state of Louisiana on the effective date of the statute [September 3, 1984].  LAC 43:I.907.
   
3) Evidence that the lands were subject to a mineral lease granted by such agency or political subdivision, or its governmental predecessor, on the effective date of the statute [September 3, 1984].  LAC 43:I.907.