§ 30:209 — State Mineral and Energy Board; authority

§209. State Mineral and Energy Board; authority
In order to carry out the provisions of R.S. 30:208, the State Mineral and Energy
Board may:
(1) Conduct geological and geophysical surveys of any kind, or cause them to be
conducted on its behalf under contracts granting exclusivity of operations to the contracted
party, and further providing for acquisition of seismic data by the state.
(2) Equip, drill, and operate wells or mines for the production of minerals. If a party
is found to be equipping, drilling, or operating wells or mines for the production of minerals
and the office of mineral resources finds that it is in the best interest of the state, the office
may allow that party to continue such activity under the oversight of the office. Further, the
office may collect from that party, after deduction of reasonable costs of drilling, equipping,
and operating wells, the value of production from those wells. Revenues collected under the
provisions of this Paragraph shall be credited to the Mineral and Energy Operation Fund in
the state treasury.
(3) Construct, operate, and maintain necessary or convenient facilities for saving,
transporting, and marketing mineral production.
(4)(a) Enter into operating agreements whereby the state receives a share of revenues
from the production of oil, gas, and other minerals, and wind energy, after deduction of costs,
in whole or in part, such as for drilling, testing, completion, equipping, or operating a well
or wells, as may be agreed upon by the parties, and assumes all or a portion of the risk cost
of development or production activity in those situations where the board determines it is in
the best interest of the state, either in equity or in developmental productivity, to do so, such
as but not limited to the following illustrations:
(i) Taking over an abandoned well with appropriate land area in an attempt to
reestablish production rather than plug and abandon the well.
(ii) Reestablishing a reasonable prospective productive area around a well already
drilled wherein the lease was lost through an oversight or technicality.
(iii) Establishing a contract on unleased state acreage within an established unit.
(iv) Establishing a contractual agreement on acreage where title is disputed and
production from the disputed acreage is being settled.
(b) The office of mineral resources, on behalf of the mineral board, shall administer
all operating agreements. After deposit of all revenues collected to the Bond Security and
Redemption Fund, an amount equal to twenty-five percent of the revenues collected from any
operating agreement entered into after August 15, 1997, shall be credited to the Mineral and
Energy Operation Fund for appropriation to the Department of Conservation and Energy.
(c) Any costs for which the state is held liable shall be paid only from revenues
received by the state through production payments.
(d) Those operating agreements entered into by the State Mineral and Energy Board
prior to August 15, 1997, are hereby ratified as being in compliance herewith.
(e) Upon a two-thirds vote of the members of the State Mineral and Energy Board
and after notification to the governing authority of the affected parish, which may be made
by electronic mail to the parish president, police jury president, or mayor-president,
depending on the form of parish government, and a public hearing conducted by a hearing
officer appointed by the secretary for the office of mineral resources in each affected parish
pursuant to R.S. 30:6, enter into operating agreements whereby the state receives a share of
revenues from the storage of oil, natural gas, liquid or liquefied hydrocarbons, or carbon
dioxide, in whole or in part, as may be agreed upon by the parties, and assumes all or a
portion of the risk of the cost of the activity in those situations where the board determines
it is in the best interest of the state either in equity or in the promotion of conservation to do
so, such as but not limited to the following illustrations:
(i) Creating caverns in salt domes for the storage of hydrocarbons or carbon dioxide.
(ii) Establishing a hydrocarbon or carbon dioxide storage facility in an underground
reservoir.
(iii) Taking over an abandoned surface or underground storage facility in order to
maximize the useful life of the existing facility.
(iv) Establishing a contractual agreement for the operation of a carbon dioxide
storage facility for the storage and distribution of carbon dioxide for secondary or tertiary
recovery operations.
(v) Establishing a contractual agreement on unleased acreage or where title is
disputed to promote utilization of the state's resources for storage.
(5) Do all other things which may appear to be necessary or desirable.
(6) Notwithstanding any other provision of law to the contrary, the State Mineral and
Energy Board is hereby authorized to enter into operating agreements for the usus or fructus
of state resources under the department's jurisdiction, or other arrangements to fulfill the
purposes and functions of the office of state resources pursuant to R.S. 36:358(E), and to
adopt, promulgate, amend, or repeal all rules and regulations necessary to implement,
administer, and enforce any such agreements.

Legislative History

Acts 1997, No. 530, §1; Acts 2002, 1st Ex. Sess., No. 106, §1, eff. April 18, 2002; Acts 2003, No. 993, §1, eff. July 2, 2003; Acts 2008, No. 610, §1; Acts 2009, No. 196, §2, eff. July 1, 2009; Acts 2022, No. 443, §1; Acts 2023, No. 150, §5, eff. Jan. 10, 2024; Acts 2023, No. 378, §1, eff. June 14, 2023; Acts 2024, 3rd Ex. Sess., No. 17, §1, eff. Jan. 1, 2025; Acts 2025, No. 458, §1, eff. Oct. 1, 2025.