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 8: Award of State and State Agency Mineral Leases and Options at the State Mineral Lease Sale

B. Options for State or State Agency Mineral Lease

If there are multiple bids on a state or state agency tract that are acceptable to the State Mineral & Energy Board, current Board policy is to award a mineral lease to the party who submitted the bid most advantageous to the state and offer an option for a mineral lease to the other acceptable bidder(s) at the other acceptable bidder(s) bid price, on the acreage the other acceptable bidder(s) bid on that does not overlap with the lease award acreage. Office of Mineral Resources personnel contact the other bidder(s) after the state mineral lease sale, verbally notify him of the lease option, transmit a plat outlining the portion acreage available under the lease option, and advise him that he has 24 hours to determine whether or not he wants to exercise the lease option.   If the other bidder(s) decides to exercise the lease option, he must verbally notify the Leasing Section of his decision. If he decides not to exercise the lease option, he must notify the Leasing Section in writing.