Louisiana Administrative Code › Title 43 - NATURAL RESOURCES › Part V - Office of Mineral Resources › Chapter 5 - Mineral Resources › Subchapter A - Mineral Leasing Policy › Section V-502 - Bidding [Formerly LAC 43:I.902]

Current through Register Vol. 50, No. 6, June 20, 2024
A. Bids
				  for state mineral leases shall only be accepted from those parties who are
				  registered prospective leaseholders (having a registration form containing
				  current information regarding the bidder and a current certificate of good
				  standing from the Secretary of State's office indicating prospective bidder is
				  authorized to do business in the state of Louisiana) with the Office of Mineral
				  Resources. Prospective leaseholders must maintain current their registration by
				  notifying the Office of Mineral Resources of any change of information provided
				  on the registration form and prior to January 31 of each year, if applicable,
				  furnishing the Office of Mineral Resources with a copy of a certificate from
				  the Secretary of State's Office indicating the party is in good standing and
				  remains authorized to do business in the state of Louisiana.
B. Bids for state mineral leases shall be
				  accepted at the place named in the advertisement no later than 12 noon on the
				  Tuesday immediately preceding the Wednesday State Mineral Board meeting (unless
				  specially noticed due to holidays).
C. Bids must be in a sealed envelope with the
				  tract number for which the bid is being submitted legibly typed or written on
				  the outside of the envelope. The bid packet shall contain the official state of
				  Louisiana bid form as secured from the website form file, completely and
				  accurately filled out and signed by an authorized agent of the bidder, a
				  cashier's or certified check, or money order made out to the Office of Mineral
				  Resources for the total amount of the cash bonus being bid (which must match
				  exactly the cash bonus written in on the bid form submitted), a check made out
				  to the Office of Mineral Resources for the sum equaling 10 percent of the total
				  cash bonus bid, a check made out to the Office of Mineral Resources for a sum
				  equaling $20 multiplied times the total number of acres being bid on (if bid is
				  on entire tract, then multiply $20 times total tract acreage), a "hard" paper
				  copy of the plat and legal description of a portion bid and a diskette or
				  CD-ROM containing a .dxf file and a word.doc file describing the portion bid
				  (which must match each other and the "hard" copies) and an electronic .pdf file
				  of the plat. Failure to sign the bid form, or a discrepancy between the amount
				  of the cash bonus set forth on the check presented and, if less than, the
				  amount written in on the accompanying bid form, shall invalidate the bid,
				  rendering it unacceptable to the State Mineral Board. Bids once submitted shall
				  not be returned prior to the State Mineral Board meeting for which they were
				  submitted, and then only by permission of the State Mineral Board or if the bid
				  is rejected.
D. Bids shall be
				  opened on the date, and at the time and place specified in the advertisement.
				  If a nominated tract is withdrawn from a particular mineral lease sale by the
				  State Mineral Board for any reason, any bids received on the withdrawn tract
				  shall be returned unopened at the end of the State Mineral Board meeting from
				  which the tract was withdrawn.
E.
				  All bids opened shall be evaluated by the staff of the State Mineral Board and
				  recommendations made as to whether each bid should, or should not, be accepted.
				  The State Mineral Board may then award leases on those bids it deems
				  acceptable-usually at the meeting when the corresponding bids are opened. All
				  bids not accepted shall be returned to the unsuccessful bidder at the end of
				  the meeting at which the bids were opened.
F. Awarded leases are prepared by the staff
				  of the Office of Mineral Resources and sent to the new lessee for signature and
				  recordation in the parish records of the parish(s) in which the lease acreage
				  is located. A fully signed and executed copy of the lease, with recording
				  information, shall then be returned to the Office of Mineral Resources within
				  20 days of receipt therefrom (failure to so return may result in forfeiture of
				  lease) and shall be filed in the lease records of that office.
G. More particular information with regards
				  to the bidding procedure may be obtained from the Leasing Manual located on the
				  DNR website as set forth hereinabove.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 36:354(A).