Program Authorization: La. Const. Article IX, Sec. 3 - 6; R.S. 36:351; R.S. 30:121
The State of Louisiana holds title to vast areas of land and water bottoms which produce or have the potential to produce minerals (primarily oil and gas). Leasing of these areas for mineral production provides a large revenue source for the state. The Mineral Resources Management Program provides staff support to the State Mineral Board which ensures that the state is obtaining the highest possible returns from the leasing of these lands. The mission of this program is to provide the State Mineral Board with engineering, geological and administrative services. The goal of this program is to maximize revenues to the state from royalties, bonuses and rentals generated from mineral production on state-owned lands while maintaining a preference for the intrastate market when in the best interest of the state. There are two activities in this program: Mineral Resources Management, and Mineral Income Auditing.
OBJECTIVES AND PERFORMANCE INDICATORS
1. The Mineral Resources Management Program will increase the percentage or productive acreage as a part of total acreage leased by 1% over the 6/30/98 level by 6/30/99. (This objective measures the program's performance to increase production and revenues to the state.)
2. The Mineral Resources Management Program will increase the portion of total royalties paid which are audited by 1% by 6/30/99. This will help ensure the state is receiving proper payments on its leases.
RESOURCE ALLOCATION FOR THE PROGRAM
This program is funded with Fees and Self-generated Revenues, Statutory Dedications, and Federal Funds. The Fees and Self-generated Revenues are derived from the following: (1) assessing a 10% fee on the bonus amount for each lease awarded; (2) assessing a $100 fee for each assignment and $500 for each unitization proposal or other instrument requiring advertisement; (3) assessing fees for geophysical permits; (4) assessing fees or liquidated damages as specified in certain lease forms for failure to timely submit releases of leases and production on unleased acreage; (5) assessing a fee of $35 per hour for staff time required to process claims for refunds of overpayment of royalties caused by the payer's errors; (6) assessing a fee for reproduction expenses; (7) assessing a fee of $120 per year for each subscription for Notices of Publication which describe tracts being offered for lease and contain lease sale results and other special notices; (8) assessing a fee of $200 for mineral lease nominations; (9) assessing a 10% late royalty payment penalty; (10) assessing a 5% incorrect royalty reporting penalty; (11) the sale of lease maps; and (12) assessing a $100 per day penalty for late assignments. These Self-generated Revenues provide for the operational expenses of this office. The Statutory Dedications are derived from the Legal Support fund per Act 1293 of 1995. (Per R.S. 39:32B. (8), see table below for a listing of expenditures out of each statutory dedicated fund.) The Federal Funds are derived from the Department of Interior's Mineral Management Service.
The total means of financing for this program is recommended at 102.8% of the existing operating budget. It represents 96.7% of the total request ($7,916,086) for this program. The 2.8% increase is due to an increase in indirect costs to the Management and Finance Program in the Office of the Secretary for administrative services. This program does not have any positions that have been vacant for 1 year or more.
|
Legal services to pursue recovery of mineral underpayments per Act 1293 of 1995 |
||
|
Computer consultation relative to the royalty accounting and the leasing information systems |
||
ACQUISITIONS AND MAJOR REPAIRS
11 DEPARTMENT OF NATURAL RESOURCES