Terms Used In Louisiana Revised Statutes 31:138.1

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.

            A. For the purposes of this Article, a “division order” is an instrument setting forth the proportional ownership in minerals or other substances, or the value thereof, that is prepared after examination of title and that is executed by the owners of the production or other persons having authority to act on behalf of the owners thereof.

            B. A division order shall not alter or amend the terms of the mineral lease. A division order that varies the terms of the mineral lease is invalid to the extent of the variance, and the terms of the mineral lease take precedence.

            C. The execution of a division order is not a condition precedent to receiving payment from a lessee. The lessee shall not withhold royalty payments because his lessor has not executed a division order.

            D. If the lessee fails to pay royalties solely because his lessor has not executed a division order as defined in this Article, the court shall award as damages double the amount of royalties due, legal interest on that sum from the date due, and reasonable attorney’s fees. However, if the lessor fails to supply the name, address, and tax identification number upon written request of the lessee, the lessee’s failure to pay royalties shall be deemed reasonable.             Acts 1992, No. 1110, §1; Acts 2023, No. 88, §1.

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