How to Report Force Majeure

Reporting Force Majeure Event

 

At the State Mineral and Energy Board Meeting on August 10, 2005, the Board adopted a policy concerning lease maintenance as a result of a Force Majeure event.

 

Procedures for Reporting Force Majeure

 

    1. Read your lease – some older lease forms may not have Force Majeure language or may not have language applicable to your particular situation. Some older leases require action within sixty (60) days instead of ninety (90) days. 

    2. Within ninety (90) [or sixty (60)] days of the event, report the incident to the Office of State Resources (OSTR) per the guidelines below, including written notice.

Most Recent State Lease Form SONRIS Database (Locate Your Specific Lease)

Submit Initial Notice to:

Matthew Aranyosi
Matthew.Aranyosi@la.gov, or
(225) 342-4545

 

Written Notice to:

Louisiana Department of Conservation and Energy
Office of State Resources
Attn: Matthew Aranyosi
PO Box 2827
Baton Rouge, LA 70821

Sample Excel Spreadsheet for Reporting Large Numbers of Affected Assets Affidavit for Force Majeure Reporting

Written Notice Should Include:

  1. A list of all leases affected by the event.
  2. A description of how the lease(s) was maintained at the time of the event.
  3. The nature of the event, including duration and severity
  4. The resulting impact which prevents the commencement or continuation of lease operations or production.
  5. The estimated time necessary to remedy the impacts of the fortuitous event.
  6. A brief economic fiscal statement stating the affect the force majeure condition has on the state:
    1. For producing wells, submit an estimate of deferred royalty payments as a result of wells shut-in and include a copy of the last twelve (12) months of royalty payment reports.
    2. For wells where production was off or not established at the time of the event, prepare an Operator impact statement including comments on the effect to the state.
  7. A signed and notarized Affidavit attesting to the accuracy of the data submitted.
  8. Attach a copy of the Online Report Spreadsheet

  • If a major catastrophic event occurs, such as a hurricane, the Force Majeure Spreadsheet can help with rapid reporting where multiple assets are impacted.  Please submit this electronically as soon as practicable to support the Office of State Resources (OSTR) in preparing your submission for board approval.

  • Within a reasonable time of the initial notification, the lessee or operator shall send to OSTR all evidence supporting the cause of the event, including but not limited to pictures, reports, damage assessments, correspondence between lessee/operator and third parties affecting said event, etc. These documents should be properly labeled, showing the issues relating to the cause of the force majeure.

  • The lessee/operator may be required to submit rental payments, deferred development payments, or in-lieu royalty payments on any lease(s) that contains language stating availability to maintain the lease in the absence of production or downhole operations.

  • In the event the lease does not contain force majeure language or that the particular fortuitous event is not covered by the existing lease language, the lease will be maintained temporarily until the lessee/operator amends the lease to reflect the force majeure language adopted by the Board at the August 10, 2005, Meeting.

  • OSTR staff will follow up with additional steps required to maintain the lease.

  • On the first of each succeeding month, the lessee/operator is required to report the status of all leases affected by the force majeure event until all leases are maintained by either production or downhole operations.

Documents Related To This Topic

Force Majuere Policy 8/10/2005 Force Majeure Language for Lease Amendment June 6, 2012
Please direct all questions to OSTR Engineer Matthew Aranyosi at (225) 342-4545 or Matthew.Aranyosi@LA.GOV
C&E Secretary Dustin Davidson
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