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THE July 13, 2011 MINERAL LEASE SALE

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THE July 13, 2011
MINERAL LEASE SALE
NOTICE OF PUBLICATION
OFFICE OF MINERAL RESOURCES ON BEHALF OF THE STATE MINERAL AND ENERGY BOARD FOR THE STATE OF LOUISIANA
BATON ROUGE, LOUISIANA 70821
By virtue of and in conformity with the provisions of Sub-part A of Chapter 2, Title 30 of the Louisiana Revised Statutes of 1950, as amended, and other applicable laws, sealed bids will be received in the Office of Mineral Resources, LaSalle Office Building, Baton Rouge, Louisiana (P. O. Box 2827, Baton Rouge, LA 70821) on or before 12:00 noon on Tuesday, July 12, 2011 for a lease to explore, drill for and produce oil, gas and any other liquid or gaseous minerals in solution and produced with oil or gas on the following described tracts (Tract Nos. 42125 through 42203 , inclusive) to be opened publicly Wednesday, July 13, 2011 in the LaSalle Office Building, 617 N. 3rd Street, Capitol Complex, Baton Rouge, Louisiana.
All bids shall offer a “Cash Payment” bonus, as set forth on the authorized bid form, for a lease having a primary term in conformity with whether said lease is an inland or offshore lease and the said bonus shall maintain the lease in full force and effect for the first year. If the bid offers an ANNUAL DELAY RENTAL, which is mandatory for leases with terms of more than one (1) year, it shall not be for less than one-half (1/2) of the Cash Payment bonus bid and any bids containing an annual delay rental of less than one-half (1/2) of the Cash Payment bonus will be increased to the one-half (1/2) amount. Any lease granted shall be without warranty or any recourse whatsoever, either express or implied, against Lessor with regard to questions of title, not even for the return by Lessor of any payments received under the lease or being otherwise responsible therefore to Lessee. Under LSA- R. S. 30:127, the Minimum Royalty bid cannot be less than one-eighth (1/8) of all oil, gas or other liquid or gaseous minerals in solution and produced with oil or gas and saved or utilized. Rights to geothermal resources, free sulphur, potash, lignite, salt and other solid minerals are to be excluded from any oil or gas mineral lease and any bid purporting to include those rights will be disregarded as to the extent of those rights only. All bidders are notified that the Mineral Board does not obligate itself to accept any bid, and that acceptance is at the sole discretion of the Mineral Board which reserves the right to reject any and all bids or to grant a lease on any portion of the tract advertised and to withdraw the remainder of the tract.
Act 8 of the 2000 Second Extraordinary Legislative Session established two additional fees to be collected from mineral lessees (excluding state agency lands) on all mineral leases awarded. An additional fee of $15 per acre will be collected and deposited into the Louisiana Wildlife and Fisheries Conservation Fund. An additional fee of $5 per acre will be collected and deposited into the Oil and Gas Regulatory Fund. A separate check in the amount of $20 per acre made payable to the Office of Mineral Resources shall accompany the original bid (inside the sealed bid envelope). Bidders may use a regular check for payment of the fees. The successful bidder will not receive the lease executed by the State Mineral and Energy Board until the fees are received. If the bidder is unsuccessful, both the fee check and the Cash Payment bonus check will be returned to the unsuccessful bidder.
All leases awarded shall be executed upon terms and conditions provided in the current State lease form with all applicable riders appended thereto a copy of which is available for review in the Office of Mineral Resources, Petroleum Lands Division, Leasing Section.
Certified check, cashier’s check or bank money order payable to the OFFICE OF MINERAL RESOURCES for the full amount of the aforesaid Cash Payment bonus shall be submitted with and accompany each bid, and no bid, once submitted, may be thereafter withdrawn or canceled. Once the bid is opened and accepted by the Mineral Board, the accompanying checks or money order shall be negotiated by the Office of Mineral Resources and the proceeds disbursed in the manner required by law.
SPECIAL NOTE:
Act 449 of the 2005 Regular Session of the Louisiana Legislature requires that a prospective lease holder for a State mineral lease be registered with the Office of Mineral Resources. Registration with the Office of Mineral Resources consists of filling out the Prospective Leaseholder form and supplying this office with a certificate from the Secretary of State for the State of Louisiana attesting that the prospective leaseholder is in good standing as authorized to do business in the State of Louisiana. UNDERSTAND that being registered for nomination or any other purpose DOES NOT CONSTITUTE REGISTRATION AS A PROSPECTIVE LEASEHOLDER. Act 449 specifically states that, "Only those bidders who are registered prospective leaseholders with the office of mineral resources shall be allowed to bid on tracts for the purpose of obtaining a mineral lease from the state of Louisiana." If an entity plans to submit a bid on a tract at any State mineral lease sale, that bid WILL NOT be accepted unless the bidding entity was properly registered with the Office of Mineral Resources prior to the lease sale at which its bid was submitted. THERE WILL BE NO EXCEPTIONS TO THIS REQUIREMENT!!!
Under rules promulgated by the Department of Natural Resources in accordance with authority granted by Act 106 of the First Extraordinary Session of the Louisiana Legislature of 2002, a fee equal to ten percent (10%) of the Cash Payment bonus bid is required to be submitted by separate check, accompanying the original bid (inside the sealed bid envelope). Bidders may use a regular check for the 10% fee. The successful bidder will not receive the lease executed by the State Mineral and Energy Board until the fee is received. If the bidder is unsuccessful, both the fee check and the Cash Payment bonus check will be returned to the unsuccessful bidder.
The successful bidder to whom the lease is awarded who receives the written lease executed by the State Mineral and Energy Board shall return the written lease, duly executed by Lessee (all of named Lessees on the lease instrument), within TWENTY (20) DAYS of receipt of same under penalty for failure to do so of forfeiture of the lease, including the Cash Payment bonus and fee tendered and negotiated.
Bids may be for the whole or any particularly described portion of the land advertised, but consistent with Mineral Board policy. All bidders are hereby notified that bids on portions of tracts shall be described by metes and bounds and be accompanied by a transparent plat outlining thereon the portion bid upon. The scale of the transparent plat shall be the same as the scale of the OFFICIAL PLAT (NOT THE F & A PLAT) CONTAINED HEREIN and should identify the Point of Beginning with X and Y coordinates (if applicable), the Section, Township and Range, the Block No. (if offshore), the Parish, any adjacent existing State Mineral Leases, and, further, should clearly show the entire tract boundaries in relationship to the portion bid upon. It shall also show the Topographic features (Land and Water) of the area in detail similar to the Official Plat contained herein. Failure to follow these guidelines in submitting a portion bid may result in outright rejection of the portion bid by the State Mineral and Energy Board at its sole discretion.
Notice is given that the State Mineral and Energy Board will include provisions in the lease to insure applicable payments attributable to the lease property without regard to adverse title claims, disputes, litigation or title failure and the language of those provisions is available to any interested party at the Office of Mineral Resources. Prospective bidders should carefully examine the same prior to submitting any bid.
Some tracts available for leasing may be situated in the Louisiana Coastal Zone as defined in Act 361 of the Regular Session of the Louisiana Legislature of 1978 (promulgated as LSA-R. S. 49:213) and may be subject to the guidelines and regulations promulgated by the Coastal Management Section of the Department of Natural Resources for operations in the Coastal Zone.
NOTE: All bids shall specify the Cash Payment bonus for leases as a price per acre amount and an aggregate total amount, whereby a bid for the entire tract shall be controlled by the bid price per acre multiplied by the specified amount of state owned/claimed acreage advertised for the tract, and a bid for a portion of the tract shall be controlled by the bid price per acre multiplied by the actual amount of state owned/claimed acreage within the polygon boundaries of the portion bid. For purposes of rental payments, the price bid per acre for the Cash Bonus, reduced if appropriate to the rental price per acre- but not less than one-half of the price per acre bid for the Cash Bonus- multiplied by the state owned/claimed acreage of the polygon bid (specified acreage if entire tract is bid; actual acreage in portion bid polygon) shall determine the amount of the rental payment throughout the primary term, regardless of any releases. For purposes of deferred development payments, one-half of the price per acre bid for the Cash Bonus multiplied by the state owned/claimed acreage within the remaining lease polygon, if any release has occurred, but outside of a unit polygon within which unit activity is ongoing, shall determine the amount of the deferred development payment.
NOTE: Multiple portion bids on the same tract may be accepted by the State Mineral and Energy Board, even though they overlap. In the case of overlapping portion bids on the same tract, each of which is otherwise acceptable to the State, the State Mineral and Energy Board will indicate which one of the multiple bids on the same tract is most advantageous, considering the royalty, per acre cash payment, bonus, any additional consideration and what, in the sole discretion of the Mineral Board, is in the best interest of the State, and that bid (referred to as “Bid A”) will be given priority in having a lease issued. The State Mineral and Energy Board will also indicate the acceptability of other portion bids on the same tract, if any, in the order of their acceptance (referred to respectively as “Bid B”, “Bid C”, etc.). Once the plat of “Bid A” ‘s portion has been rendered as accurately as possible, “Bid B” will be contacted and given an option to take a lease on the remaining portion of his portion bid acreage not overlapping “Bid A” ‘s bid portion, at “Bid B’ ‘s per acre bid price (both as to bonus and rental); and thereafter, each successive bidder whose bid is otherwise acceptable will be given the option to take a lease on whatever portion remains of his portion bid acreage at his respective per acre bid price, less and except any prior portion bid acreage on which the successful bidder has opted to take a lease.
NOTE: If you require accommodations due to a disability in order to attend or participate in a meeting, please notify the Office of Mineral Resources at P.O. Box 2827, Baton Rouge, LA 70821-2827 or 225-342-4606 at least two (2) working days before the meeting date.
NOTE: DEEPWELL INCENTIVE: It is important for the continued prosperity and welfare of the people of the state of Louisiana, that the state promote the continued growth and development of the mineral resources of the state of Louisiana. It is the intention of this notice to inform the bidders of the economic incentives allowed by state law in order to enhance mineral production to the ultimate benefit of the state. In accordance with the provisions of LA R.S. 47§633(9)(d)(v), Louisiana law allows the suspension of severance tax on the production of natural gas, gas condensate, and oil from any well drilled to a true vertical depth of more than fifteen thousand (15,000) feet, where the production commenced after July 31, 1994. The severance tax exemption shall start from the date of production for twenty-four months or until payout of the well cost, whichever comes first. In addition to this Severance Tax Provision, please refer to other applicable statutes, such as LA R.S. 47§633, 47§633.4 and 30§127.1 for other incentives allowed by Louisiana law.
INLAND TRACTS (Tract Nos. 42132 through 42183 inclusive, herein) are those tracts which lie landward of the Louisiana shoreline as defined by the report of the Special Master in the litigation in the Supreme Court of the United States styled United States v. State of Louisiana, et al, No. 9 Original and set out in the June 1975, Decree of the said Supreme Court. All bids on inland tracts cannot specify a lease primary term exceeding three (3) years. Bids that specify a primary term exceeding three (3) years for an inland tract may be rejected outright or the primary term changed to three (3) years at the sole discretion of the State Mineral and Energy Board.
TRACT 42154 - Lincoln and Union Parishes, Louisiana
All of the lands now or formerly constituting the beds and bottoms of all water bodies of every nature and description as to which title is vested in the State of Louisiana, together with all islands arising therein and other lands formed by accretion or by reliction, where allowed by law, excepting tax adjudicated lands, and not presently under mineral lease on July 13, 2011, situated in Lincoln and Union Parishes, Louisiana, and more particularly described as follows: Beginning at a point having Coordinates of X = 1,957,273.87 and Y = 766,435.14; thence South 71 degrees 01 minutes 59 seconds East 6,286.86 feet to a point having Coordinates of X = 1,963,219.40 and Y = 764,391.78; thence South 8,554.67 feet to a point having Coordinates of X = 1,963,219.40 and Y = 755,837.10; thence West 6,100.00 feet to a point having Coordinates of X = 1,957,119.40 and Y = 755,837.10; thence North 00 degrees 50 minutes 06 seconds East 10,599.16 to the point of beginning; LESS AND EXCEPT any portion of State Lease No. 15045 that lies within the above described tract, more particularly described as follows: All of Section 6, Township 20 North, Range 2 West, Union and Lincoln Parishes, Louisiana, containing approximately 12 acres; Above described nominated tract containing approximately 12 acres, all as more particularly outlined on a plat on file in the Office of Mineral Resources, Department of Natural Resources. All bearings, distances and coordinates are based on Louisiana Coordinate System of 1927, (North or South Zone), where applicable.
NOTE: The above description of the Tract nominated for lease has been provided and corrected, where required, exclusively by the nomination party. Any mineral lease selected from this Tract and awarded by the Louisiana State Mineral and Energy Board shall be without warranty of any kind, either express, implied, or statutory, including, but not limited to, the implied warranties of merchantability and fitness for a particular purpose. Should the mineral lease awarded by the Louisiana State Mineral and Energy Board be subsequently modified, cancelled or abrogated due to the existence of conflicting leases, operating agreements, private claims or other future obligations or conditions which may affect all or any portion of the leased Tract, it shall not relieve the Lessee of the obligation to pay any bonus due thereon to the Louisiana State Mineral and Energy Board, nor shall the Louisiana State Mineral and Energy Board be obligated to refund any consideration paid by the Lessor prior to such modification, cancellation, or abrogation, including, but not limited to, bonuses, rentals and royalties.
NOTE: The above Tract is located upon a restricted scenic river and all operations in this area must be conducted in strict conformity with the regulations of the Corps of Engineers, U.S. Army.
TRACT 42155 - Lincoln and Union Parishes, Louisiana
All of the lands now or formerly constituting the beds and bottoms of all water bodies of every nature and description as to which title is vested in the State of Louisiana, together with all islands arising therein and other lands formed by accretion or by reliction, where allowed by law, excepting tax adjudicated lands, and not presently under mineral lease on July 13, 2011, situated in Lincoln and Union Parishes, Louisiana, and more particularly described as follows: Beginning at a point having Coordinates of X = 1,973,104.58 and Y = 760,994.43; thence South 61 degrees 17 minutes 19 seconds East 10,000.00 feet to a point having Coordinates of X = 1,981,875.08 and Y = 756,190.45; thence South 39 degrees 21 minutes 36 seconds West 6,898.71 feet to a point having Coordinates of X = 1,977,499.98 and Y = 750,856.53; thence North 63 degrees 40 minutes 15 seconds West 11,700.00 feet to a point having Coordinates of X = 1,967,013.73 and Y = 756,045.80; thence North 6,913.73 feet to a point having Coordinates of X = 1,967,013.73 and Y = 762,959.53; thence South 72 degrees 07 minutes 07 seconds East 6,400.00 feet to the point of beginning; LESS AND EXCEPT any portion of State Lease No. 15045 that lies within the above described tract, more particularly described as follows: All of Section 6, Township 20 North, Range 2 West, Union and Lincoln Parishes, Louisiana, containing approximately 12 acres; and LESS AND EXCEPT any portion of State Lease No. 15046, more particularly described as follows: All that portion of Middle Fork of Bayou D’Arbonne located in Section 10, Township 20 North, Range 2 West, Lincoln and Union Parishes, Louisiana, containing approximately 14 acres; Above described nominated tract containing approximately 27 acres, all as more particularly outlined on a plat on file in the Office of Mineral Resources, Department of Natural Resources. All bearings, distances and coordinates are based on Louisiana Coordinate System of 1927, (North or South Zone), where applicable.
NOTE: The above description of the Tract nominated for lease has been provided and corrected, where required, exclusively by the nomination party. Any mineral lease selected from this Tract and awarded by the Louisiana State Mineral and Energy Board shall be without warranty of any kind, either express, implied, or statutory, including, but not limited to, the implied warranties of merchantability and fitness for a particular purpose. Should the mineral lease awarded by the Louisiana State Mineral and Energy Board be subsequently modified, cancelled or abrogated due to the existence of conflicting leases, operating agreements, private claims or other future obligations or conditions which may affect all or any portion of the leased Tract, it shall not relieve the Lessee of the obligation to pay any bonus due thereon to the Louisiana State Mineral and Energy Board, nor shall the Louisiana State Mineral and Energy Board be obligated to refund any consideration paid by the Lessor prior to such modification, cancellation, or abrogation, including, but not limited to, bonuses, rentals and royalties.
NOTE: The above Tract is located upon a restricted scenic river and all operations in this area must be conducted in strict conformity with the regulations of the Corps of Engineers, U.S. Army.
TRACT 42159 - Lincoln Parish, Louisiana
All of the lands now or formerly constituting the beds and bottoms of all water bodies of every nature and description as to which title is vested in the State of Louisiana, together with all islands arising therein and other lands formed by accretion or by reliction, where allowed by law, excepting tax adjudicated lands, and not presently under mineral lease on July 13, 2011, situated in Lincoln Parish, Louisiana, and more particularly described as follows: Beginning at a point having Coordinates of X = 1,966,014.66 and Y = 743,459.27; thence South 07 degrees 18 minutes 21 seconds East 10,761.59 feet to a point having Coordinates of X = 1,967,383.16 and Y = 732,785.05; thence South 80 degrees 00 minutes 00 seconds West 18,480.00 feet to a point having Coordinates of X = 1,949,183.91 and Y = 729,576.03; thence North 03 degrees 23 minutes 53 seconds West 10,359.18 feet to a point having Coordinates of X = 1,948,569.89 and Y = 739,917.00; thence North 78 degrees 31 minutes 18 seconds East 17,800.79 feet to the point of beginning, LESS AND EXCEPT in its entirety State Lease No. 14260, more particularly described as follows: That portion of Bayou D’Arbonne located in Section 25, Township 20 North, Range 3 West, Lincoln Parish, Louisiana, containing approximately 4 acres; and LESS AND EXCEPT all that portion of State Lease No. 14261 which lies within the above described tract, more particularly described as follows: That portion of Bayou D’Arbonne located in Section 30, Township 20 North, Range 2 West, Lincoln Parish, Louisiana, containing approximately 8 acres; Above described nominated tract containing approximately 31 acres, all as more particularly outlined on a plat on file in the Office of Mineral Resources, Department of Natural Resources. All bearings, distances and coordinates are based on Louisiana Coordinate System of 1927, (North or South Zone), where applicable.
NOTE: The above description of the Tract nominated for lease has been provided and corrected, where required, exclusively by the nomination party. Any mineral lease selected from this Tract and awarded by the Louisiana State Mineral and Energy Board shall be without warranty of any kind, either express, implied, or statutory, including, but not limited to, the implied warranties of merchantability and fitness for a particular purpose. Should the mineral lease awarded by the Louisiana State Mineral and Energy Board be subsequently modified, cancelled or abrogated due to the existence of conflicting leases, operating agreements, private claims or other future obligations or conditions which may affect all or any portion of the leased Tract, it shall not relieve the Lessee of the obligation to pay any bonus due thereon to the Louisiana State Mineral and Energy Board, nor shall the Louisiana State Mineral and Energy Board be obligated to refund any consideration paid by the Lessor prior to such modification, cancellation, or abrogation, including, but not limited to, bonuses, rentals and royalties.
TRACT 42160 - Lincoln Parish, Louisiana
All of the lands now or formerly constituting the beds and bottoms of all water bodies of every nature and description as to which title is vested in the State of Louisiana, together with all islands arising therein and other lands formed by accretion or by reliction, where allowed by law, excepting tax adjudicated lands, and not presently under mineral lease on July 13, 2011, situated in Lincoln Parish, Louisiana, and more particularly described as follows: Beginning at a point having Coordinates of X = 1,948,569.89 and Y = 739,917.00; thence South 03 degrees 23 minutes 53 seconds East 10,359.18 feet to a point having Coordinates of X = 1,949,183.91 and Y = 729,576.03; thence West 18,480.00 feet to a point having Coordinates of X = 1,930,703.91 and Y = 729,576.03; thence North 00 degrees 08 minutes 00 seconds West 10,466.57 feet to a point having Coordinates of X = 1,930,679.56 and Y = 740,042.58; thence South 89 degrees 35 minutes 52 seconds East 17,890.77 feet to the point of beginning, containing approximately 44 acres, all as more particularly outlined on a plat on file in the Office of Mineral Resources, Department of Natural Resources. All bearings, distances and coordinates are based on Louisiana Coordinate System of 1927, (North or South Zone), where applicable.
NOTE: The above description of the Tract nominated for lease has been provided and corrected, where required, exclusively by the nomination party. Any mineral lease selected from this Tract and awarded by the Louisiana State Mineral and Energy Board shall be without warranty of any kind, either express, implied, or statutory, including, but not limited to, the implied warranties of merchantability and fitness for a particular purpose. Should the mineral lease awarded by the Louisiana State Mineral and Energy Board be subsequently modified, cancelled or abrogated due to the existence of conflicting leases, operating agreements, private claims or other future obligations or conditions which may affect all or any portion of the leased Tract, it shall not relieve the Lessee of the obligation to pay any bonus due thereon to the Louisiana State Mineral and Energy Board, nor shall the Louisiana State Mineral and Energy Board be obligated to refund any consideration paid by the Lessor prior to such modification, cancellation, or abrogation, including, but not limited to, bonuses, rentals and royalties.
1td: June 10, 2011

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