Current through Register Vol. 50, No. 9, September 20, 2024
A. Exclusive geophysical agreements
authorized under Title 30, Chapter 3, Sections 208 of the Louisiana Revised
Statutes of 1950 may be obtained from the State Mineral Board (SMB), through
the Office of Mineral Resources (OMR).
B. There are three types of Exclusive
Geophysical Agreements (EGA) which may be secured from the OMR, namely: EGA
Type I, EGA Type II, and EGA Type III. The following shall apply to all EGA's
secured hereunder.
1. A party desiring to
apply for an EGA must first meet with the OMR staff to review the applicant's
objectives. The purpose of this meeting with the OMR staff is so that the
applicant can present the area of interest and the type of EGA being requested
to the staff for review. The staff will determine if an EGA should be granted
in the area of interest and will also decide under what special conditions, if
any, the EGA should be considered. The applicant should present at this meeting
an acceptable base map, such as a Tobin or USGS quadrangle with the proposed
survey area outlined, with the description set forth in X/Y Lambert coordinates
using State Plane Coordinate System/ North American Datum 27, Louisiana North
or South (SPCS/NAD 27, La. N. or S.). Active state leases boundaries should be
clearly depicted with state lease numbers and acreage within the survey
indicated. State lands and water bottoms should be clearly outlined, with
acreage depicted as well. Property under the jurisdiction of the Wildlife and
Fisheries Commission/Department of Wildlife and Fisheries (WFC/DWF) should also
be depicted.
2. After the area of
interest and the type of EGA has been presented to the OMR staff for review,
the area will be evaluated in order to set the minimum terms. The interested
party will then be provided with this information. If accepted by the party,
then these minimums will be recommended to the SMB for its approval.
3. Upon SMB approval, the area to be covered
by the exclusive geophysical agreement shall be nominated just as a lease. The
applicant should then apply to the OMR Leasing Section to nominate the area for
the designated monthly mineral lease sale. A nomination letter, including plat
and legal description of the area, with an application fee of $400 must be
submitted according to the date schedule set by the OMR Leasing
Section.
4. The nominated acreage
will then be advertised on the same delay basis and in the same manner as lease
nominations; which advertisement will state a property description of the
geographical area over which the EGA is to be awarded, the type of EGA sought
and the minimum per acre seismic fee acceptable to the SMB as a bid, and the
day, date, time, place of the next State Mineral Lease Sale at which bids will
be accepted.
5. The term of the EGA
shall be 18 months with an option for an additional six months, which option
period shall be granted only upon written request by the bid winner made prior
to the end of the original 18 month term and upon payment to the Office of
Mineral Resources in the manner set forth as acceptable herein above of a sum
of money equal to one-half of the original total fee bid and paid for the
seismic agreement.
6. EGA
agreements are awarded by public bid.
7. The EGA awarded shall be subject to, and
shall not supersede, any existing seismic permits, leases, or other agreements
of any kind with the state of Louisiana in the nominated area at the time
awarded, of which all parties are hereby deemed to have notice.
8. The staff of the OMR will be provided
access to any and all geophysical or geological data including, but not limited
to, 2-D, 3D seismic, gravity (air or surface), and magnetic (air or surface)
acquired under the EGA, in a format acceptable to the OMR at the facilities of
the entity conducting the seismic operations under the EGA or at facilities
designated by the OMR, during all phases of the seismic operations.
9. The EGA shall be available for the purpose
of conducting geophysical or geological surveys of any kind for the term and
area specified in the permit. In the case of 3D seismic, all EGA's require full
fold 3D coverage over the entirety of the nominated state acreage to the
fullest extent possible.
10. It
shall be the responsibility of the grantee to keep OMR informed, in a timely
manner, of all phases of ongoing operations, including the commencement and
completion of data acquisition, processing, reprocessing, and other schedules
of activity affecting the final processed seismic data.
11. Should any said prior agreement terminate
as to all depths, either fully or partially, before the end of the primary
term, or the option term, grantee shall have the right to conduct 3D
geophysical operations on said acreage of the terminated prior agreement
subject to the following:
a. if grantee has
already entered into an agreement with the prior agreement party before
termination and paid for the right to conduct geophysical surveying across the
acreage subject to the prior agreement, grantee shall not be required to pay
grantor any further fee to conduct geophysical surveying on said acreage once
prior agreement has terminated, either totally or in part; but
b. if grantee has not entered into an
agreement with the prior agreement party, then grantee shall pay grantor an
additional fee stipulated as the per acre seismic fee at the rate bid for in
the EGA.
C.
In addition to
§103. B above, the
following shall apply to the Exclusive Geophysical Agreement (EGA) Type I:
1. The SMB shall not grant any new seismic
agreements or permits in the nominated area during the primary term of the EGA,
or the option term if activated, but does reserve the right to accept
nominations for and grant new mineral leases within the nominated area of the
exclusive geophysical agreement. Any new mineral leases granted within the
nominated area of the EGA during its primary term, or option term if activated,
shall be subject to the rights granted under the EGA and the grantee shall not
be required to deal with the state mineral lessee in order to conduct seismic
operations over the new lease acreage.
D. In addition to
§103. B above, the
following shall apply to the Exclusive Geophysical Agreement (EGA) Type II.
1. The SMB shall not grant any new seismic
agreements or permits, or any new leases in the EGA area from the time it is
nominated, during the primary term of the EGA, or the option term if activated.
However, a buffer zone of 1/2 mile will be established around existing leases
or operating agreements within the area of the EGA. Only the grantee of the EGA
and lessee of any existing lease or operating agreement shall have the right,
concurrent with, but separate from the right of the other, to nominate acreage
for a state mineral lease within that buffer zone during the primary term of
the EGA, or the option term if activated. The leases may then go up for public
bid at the regular monthly state mineral lease sale.
2. The EGA grantee only shall have the right
to nominate acreage within the EGA area for a state mineral lease during the
primary term of the EGA, or the option term if activated, except as to the
buffer zone around existing leases, which lease nominations shall not exceed
1,500 acres each and shall not in aggregate amount exceed one-third of the
entire acreage of the EGA, unless agreed to by the SMB.
E. In addition to
§103. B above, the
following shall apply to the Exclusive Geophysical Agreement (EGA) Type III.
1. The state will not grant any new seismic
permits or agreements on, or lease the nominated acreage, or any part thereof,
during the primary term of the EGA, or the option term if activated, except
that a buffer zone of 1/2 mile will be established around existing leases or
operating agreements within the nominated area of the EGA. Only the grantee of
the EGA and lessee of the existing lease or operating agreement shall have the
right, concurrent with, but separate from the right of the other, to nominate
acreage for a state mineral lease within that buffer zone during the primary
term of the EGA, or the option term if activated. The leases may then go up for
public bid at the regular monthly state mineral lease sale.
2. The EGA III grantee shall have the
exclusive right, within the primary term of the EGA, or the option term if
activated, to select for mineral leases tracts within the EGA area, not to
exceed 1500 acres each or one third in the aggregate of the entire state
acreage within the nominated EGA area unless agreed to by the SMB.
3. The grantee of an EGA III shall have the
exclusive right to enter into lease agreement with the state on each tract for
the consideration originally bid and under the terms of the Louisiana State
Lease Form, Revised 1981, as amended. Each selection made, thereby creating a
state lease, will incur, in addition to the per acre bonus and royalty as
advertised and bid during the acquisition of the EGA, a 10 percent
administrative fee. Also, a $15 per acre fee shall be collected from the
mineral lessees and deposited into the Louisiana Wildlife and Fisheries
Conservation Fund, as well as, an additional $5 per acre fee shall be collected
from the mineral lessees and deposited into the Oil and Gas Regulatory
Fund.
F. The State
Mineral Board, through the Office of Mineral Resources, agrees, except for the
information included in a seismic permit to hold all information, maps, data of
any and all kinds provided to the state under
R.S.
30:213 or as a result of the terms of the
exclusive geophysical agreements confidential and same shall not be available
for view or use except by certain members of the staff of the Office of Mineral
Resources in connection with the administration of state owned lands and water
bottoms, and the state mineral leases thereon unless ordered by a court of
proper jurisdiction to do so, or with the granted written permission of, and
under the strict limitations imposed by, the owner having authority to license
said data. Said information shall be kept under lock and key, except during the
course of actual examination by the staff of the Office of Mineral Resources.
Any violation of these requirements is hereby declared cause for peremptory
removal from office or discharge from employment in addition to the penalties
provided under
R.S.
30:213.
AUTHORITY NOTE:
Promulgated in accordance with Act 13, First Extraordinary Session, 1988,
R.S.
30:136(A)(2) and 30:142(A),
as amended by Acts 1017 and 1018 of 1990,
R.S.
30:209 and 209.1, as amended by Acts 530 and
531 of 1997, and
R.S.
30:211 through
216.
