POSSIBLE IMPENDING LEGISLATION IN LA. LEGISLATURE
First of all, I HATE RUMORS! However, sometimes (and unfortunately) rumors have a way of morphing into what some accept as truth.
That being said, this post is a question about a rumor that I have recently heard banded about. That is, simply, when the La. legislature meets this year there may be legislation presented that would basically CUT OUT an UMI from any revenue from any production in their unit. In other words, if an unleased MO does not sign a lease -- they get nothing!
Does this make any sense to anyone? Can anyone (that is, someone who KNOWS what they are talking about), shed some "light" on this subject?
That being said, this post is a question about a rumor that I have recently heard banded about. That is, simply, when the La. legislature meets this year there may be legislation presented that would basically CUT OUT an UMI from any revenue from any production in their unit. In other words, if an unleased MO does not sign a lease -- they get nothing!
Does this make any sense to anyone? Can anyone (that is, someone who KNOWS what they are talking about), shed some "light" on this subject?
Views: 49
Replies to This Discussion
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Permalink Reply by Mattie on
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I would like to know which State Senator or Representative even considered attaching their name to such a proposal, whether it becomes law or not. If such were to become law, we would see "rape and pillaging" by the O&G companies at a pace never seen before. My two cents is that such a law would be ruled unconstitutional....gives too much power to the lessee to "force" a low bonus and royalty to the mineral owner.....ain't gonna happen....if it does, LA politics would fall to a new low, in my opinion. Let me guess.....the revenues would go to whom?? Ah, the State Government?? We already have a 10-year prescription law to encourage drilling while most other states do not, so for the LA government to approve this would be larceny.
Socialism keeps creeping in, doesn't it??
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Permalink Reply by Randy on -
I highly doubt this. It would seem to be against several other laws in place.
KB, do you really think this would fly? It would be political suicide to pass a law to allow a company to develop your assets without compensating you. Or....Socialism.
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Permalink Reply by The_Baron on
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Sounds like what can happen in TX, you don't sign and are excluded from the unit.
YOu still have the right to drill your own well to protect yourself from drainage.
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Permalink Reply by fox on
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Lanadan----My opinion is that it is just a rumor. I just talked to Rep Burford, and he has not heard anything about this, and would not be for it if it is the truth. Have not talked to Sen Cheek yet, but Burford says he dont think Cheek would be for it either. His phone number is 318-925-9588 and Sen Cheek's number is 318-687-4820 and 230-3866. Call them.
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Permalink Reply by The_Baron on
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As far as I can see, no bills like this have have been prefiled. I searched the list of bills and the only one I saw really effecting oil and gas were a few severance tax issues and a proposal to extend the time for drilling permits from 180 days to one year.
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Permalink Reply by The_Baron on
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You can still do a search of the prefiled bills by sponser, committee, and key words as well.
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Permalink Reply by lanadan Ds3 on
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As initially stated, I HATE rumors and usually don't pass them along. This serves no useful purpose. But when this topic came up more than once in recent conversations (with O&G folks "in the loop", so to speak), I felt that it needed to be put out "in the light of day". No better place than this site.
If this belongs in the rumor category -- GREAT!, leave it there, end of conversation. However, if anyone else out there in "haynesvilleland" comes across something like this, then I think it's time to circle the wagons.
Once again, knowledgeable people on this site have stepped up to the plate and rendered a valuable service. THANKS, and THANKS AGAIN, to all who took the time to respond.
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Permalink Reply by The_Baron on
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My favorite is when they pass an admenment, getit passes the voters, then realize that it has an error or ommision, or horrible unforseen side effects that can only be fixed by another admendment.
Never underestimate the stupidity of the Legislature.
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Permalink Reply by The_Baron on
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Braveheart,
I agree that this is just a viscous rumour. However, I wouldn't underestimate the stupidity of the legislature.
Also, I don't believe it would be unconstitutional on the basis that property is taken without compensation as minerals are not property untill they have been produced.
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