§143. Transfer of solid mineral leases; approval by board
A.In addition to the provisions of R.S. 30:128, in the case of a proposed transfer,
under the circumstances described in Subsection B hereof, of any lease or sublease entered
into by or under the authority of or subject to the jurisdiction of the State Mineral and Energy
Board which includes the development and production of solid minerals, the board shall
determine whether to approve such proposed transfer pursuant to this Section and to such
rules and regulations as may be issued hereunder.
B.The procedures set forth in this Section shall be followed only where the lease or
sublease proposed to be transferred is either (i) one solely for the development and
production of solid minerals or (ii) one under which solid minerals have
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§143. Transfer of solid mineral leases; approval by board
A. In addition to the provisions of R.S. 30:128, in the case of a proposed transfer,
under the circumstances described in Subsection B hereof, of any lease or sublease entered
into by or under the authority of or subject to the jurisdiction of the State Mineral and Energy
Board which includes the development and production of solid minerals, the board shall
determine whether to approve such proposed transfer pursuant to this Section and to such
rules and regulations as may be issued hereunder.
B. The procedures set forth in this Section shall be followed only where the lease or
sublease proposed to be transferred is either (i) one solely for the development and
production of solid minerals or (ii) one under which solid minerals have been developed or
produced at any time during the three years next preceding the proposed transfer. The
procedures set forth in this Section shall be followed irrespective of the form of the proposed
transfer, and shall be followed if the transfer is proposed to be effected by way of sale,
assignment, or sublease or by the acquisition, directly or indirectly, whether by merger or
otherwise, of the beneficial ownership of any class of equity securities of a corporate entity
which is either (i) the lessee or sublessee of a lease solely for the development and
production of solid minerals or (ii) the entity which has as its principal business the
development and production of solid minerals, provided, however, that a transfer for
purposes of this Section shall not be deemed to occur (i) by the giving of a mortgage or other
security interest in a lease or sublease or (ii) by the acquisition of less than ten percent of any
class of equity securities of a corporate entity or (iii) when the proposed transfer covers only
minerals other than solid minerals.
C. When a transfer is proposed under the circumstances described in Subsection B
of this Section, the proposed transferee shall first make application on forms to be prescribed
by the secretary of the Department of Conservation and Energy pursuant to regulation. The
regulations shall require, at a minimum, detailed information concerning the competence and
integrity of the proposed transferee, including its financial and performance capabilities, as
these bear upon its ability to perform all obligations under the lease or sublease in such a
manner as not to adversely affect the public interest of the state as respects its natural
resources, including potential economic and physical waste and development of the
resources, or both. All applications shall be accompanied by a fee of one hundred dollars and
a bond to secure payment by the applicant of the actual costs of any investigation or hearing
under this Section.
D.(1) Prior to any action by the board on any application, the secretary of the
Department of Conservation and Energy shall conduct a hearing on the application, which
shall be conducted as expeditiously as practicable consistent with developing a full factual
record. The seller, assignor, or sublessor of the lease or sublease or the corporate entity
whose stock the transferee proposes to acquire under the circumstances described in
Subsection B of this Section shall be a necessary party to any hearing under this Paragraph,
and to any investigation or other proceedings had in connection therewith.
(2) In advance of the hearing, the secretary of the Department of Conservation and
Energy shall have the powers conferred by R.S. 30:909 to investigate, receive written
statements, administer oaths and affirmations, subpoena witnesses, compel their attendance,
take evidence, and require the production of any books, papers, correspondence, memoranda,
contracts, agreements, or other records or documents, and any party to the hearing shall have
the right to take the testimony of any witness and to compel any witness to appear and depose
and to produce books, papers, correspondence, memoranda, contracts and agreements, or
other records or documents, on the same terms as are contained in R.S. 30:909
(3) Except as otherwise provided herein, the hearing required hereby shall be
conducted in accordance with and pursuant to the provisions of Chapter 13 of Title 49 of the
Louisiana Revised Statutes of 1950 and such regulations as the secretary of the Department
of Conservation and Energy may issue hereunder.
(4) Promptly after the conclusion of the hearing, the secretary of the Department of
Conservation and Energy shall prepare written findings of fact and a recommended decision
on the application. The secretary shall transmit these to the State Mineral and Energy Board
together with a certified copy of the hearing record. After giving due consideration to
whether the evidence establishes that the proposed transferee is competent and otherwise
qualified to perform all of the obligations under the lease or sublease in such a manner as not
to adversely affect the public interest of the state as respects its natural resources, the State
Mineral and Energy Board shall issue a written decision granting or denying the application
in whole or in part or upon conditions as it may deem appropriate.
(5) An appeal may be taken from any final order of the State Mineral and Energy
Board under this Section only by a party to the hearing required by this Subsection in
accordance with R.S. 49:978.1 and 979.
(6) Anything herein to the contrary notwithstanding, the secretary of the Department
of Conservation and Energy may transmit a recommended decision to the State Mineral and
Energy Board without first conducting an investigation or holding a hearing if all necessary
parties to the hearing file affidavits with the secretary of the Department of Conservation and
Energy attesting their belief that there are no substantial issues requiring an investigation or
hearing and the secretary independently determines that there are no substantial issues
requiring an investigation or hearing.
E. The secretary of the Department of Conservation and Energy shall have authority
to issue all necessary or appropriate regulations to implement this Section.
F. Whenever it appears to the State Mineral and Energy Board or the secretary of the
Department of Conservation and Energy that any person has engaged or is about to engage
in any act or practice constituting a violation of any provision of this Section, the secretary
of the Department of Conservation and Energy may investigate and issue orders and notices.
In addition to all other remedies, the State Mineral and Energy Board or the secretary of the
Department of Conservation and Energy may bring an action in any court of competent
jurisdiction in the name and on behalf of this state against any person or persons participating
in or about to participate in a violation of this Section to enforce compliance with this
Section or enjoin any action in violation of this Section.
G. No transfer in violation of any provision of this Section shall be valid.
H. Any person who wilfully violates this Section or who wilfully makes any false
statement in an application, investigation or hearing conducted hereunder, may be
imprisoned for a period not to exceed one year, or fined an amount not to exceed five
thousand dollars, or both.