Louisiana 2017 Regular Session

Louisiana Senate Bill SR159

Introduced
5/31/17  
Introduced
5/31/17  
Refer
5/31/17  
Report Pass
6/1/17  

Caption

Requests the Louisiana State Law Institute to study and make recommendations regarding the classification of mineral royalties for the purposes of bankruptcy proceedings.

Impact

The study requested by SR159 aims to investigate the historical reasoning behind classifying mineral royalties as rent, and the legal implications this has in bankruptcy contexts. By potentially redefining royalties as property rights belonging to landowners or mineral owners, as opposed to a form of debt, the resolution hopes to secure a stronger claim for these owners when facing bankruptcy proceedings. The expected outcomes may influence future legislative changes that prioritize the interests of landowners involved in mineral extraction.

Summary

Senate Resolution 159 urges the Louisiana State Law Institute to conduct a study regarding the classification of mineral royalties in relation to bankruptcy proceedings. This classification is currently treated as 'rent' under Louisiana law, which is considered unique compared to other jurisdictions. The resolution seeks clarity and possibly a reevaluation of this classification as it impacts the priority of claims during bankruptcy, particularly affecting the rights of landowners owed royalties. Proponents of the study argue that changing this classification could significantly enhance the legal standing of landowners in bankruptcy situations, ensuring their rights are better protected.

Sentiment

Generally, the sentiment around SR159 appears to be supportive among landowners and those in the oil and gas sector who advocate for clearer rights when it comes to mineral royalties and bankruptcy proceedings. However, there may be stakeholders who have reservations about altering long-standing classifications, emphasizing a need for careful consideration of the implications of such changes in the legal landscape.

Contention

Notable points of contention may arise as stakeholders express diverse views on the existing classification versus the proposed changes. For instance, financial institutions and some legal experts might argue that changing the classification could disrupt expectations established by current laws, potentially impacting the funding and financial structuring of businesses involved in mineral extraction. The reaction of various interest groups will be crucial to the outcome of the study and any subsequent recommendations made by the Louisiana State Law Institute.

Companion Bills

No companion bills found.

Previously Filed As

LA HCR35

Urges and requests the Louisiana State Law Institute to study and make recommendations regarding expiditing the sale of adjudicated tax-delinquent property (EN NO IMPACT See Note)

LA SR163

Requests the Louisiana State Law Institute to study and make recommendations to the legislature on including digital products in the application of the Louisiana Products Liability Act.

LA HR160

Authorizes and requests the Louisiana State Law Institute to study provisions regarding transfer of property

LA SR196

Requests the Louisiana State Police to study and make recommendations to improve driving.

LA SCR19

Requests the Louisiana State Law Institute to study the use of trusts with extended durations and report its findings and any recommendations for revisions to the Louisiana Trust Code and applicable Louisiana laws to the legislature.

LA HR96

Directs the Louisiana State Law Institute to study current practices regarding the recall of civil bench warrants and the notification process in judgment debtor proceedings

LA HCR64

Requests a study to make recommendations regarding behavioral health courts

LA HCR7

Directs the Louisiana State Law Institute to study the Constitution of Louisiana and make recommendations to the legislature regarding transitional and outdated language that can be removed or changed without affecting the effect of the constitutional provisions

LA HR217

Requests the Louisiana State Law Institute to conduct a comprehensive study on the implications of rent stabilization policies

LA HJ0002

A JOINT RESOLUTION requesting Congress to introduce a bill and enact law to increase the state of Wyoming's share of federal mineral royalties from fifty percent (50%) to eighty-seven and one-half percent (87.5%).

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