CURRENT ISSUES UNDER THE LOUISIANA LAW OF OIL AND GAS PATRICK S. OTTINGER† “The meek shall inherit the Earth, but not its mineral rights.”1 I. INTRODUCTION ............................................................................... 378 II. CURRENT ISSUES INVOLVING MINERAL SERVITUDES ................... 379 A. Altering a Mineral Servitude’s Duration: Fixed Term or Shortening of Prescription? .................................................... 379 B. Interruption of Prescription by Good Faith Operations: Is the Test Objective or Subjective? ............................................ 384 C. Liability of Servitude Owners for Damages to Land .............. 387 D. Imprescriptible Minerals Arising Out of Expropriation ......... 390 E. Right of Servitude Owner Under Non-compliant Reservation . 394 III. CURRENT ISSUES INVOLVING MINERAL ROYALTIES ..................... 395 A. “Royalty Acres” ...................................................................... 395 B. Recent Legislation—Unsolicited Offers to Purchase Mineral Royalties (or Servitudes) ......................................................... 397 IV. CURRENT ISSUES INVOLVING MINERAL LEASES ........................... 399 A. Production in “Paying Quantities” ........................................ 399 B. “Post-production” Costs ........................................................ 401 C. Transfers—Assignment or Sublease? ..................................... 402 D. Division of Mineral Leases ..................................................... 403 E. Rights Under the Well Cost Reporting Statute........................ 406 F. Payment of Royalties Under Louisiana Risk Fee Act ............. 408 G. Does the Lessee Owe a Duty of Disclosure to its Lessor? ...... 409 H. Authorized Damages for Unpaid Royalties ............................ 411 I. Liability of Mortgagee-Bank for Faults of its MortgagorBorrower ................................................................................. 413 V. CURRENT ISSUES INVOLVING EXECUTIVE RIGHTS ........................ 418 VI. CONCLUSION .................................................................................. 420
† Adjunct Professor of Law, Paul M. Hebert Law Center, Louisiana State University. Ottinger Hebert, L.L.C., 1313 West Pinhook Road, Lafayette, Louisiana 70503 (337) 232-2606 psottinger@ohllc.com. Member of Louisiana and Texas Bars. 1. J. Paul Getty (1892-1976).
377