PROCEDURES FOR BIDDING BID SUBMISSION PROCESS The bid

PROCEDURES FOR BIDDING

BID SUBMISSION PROCESS The bid submission process is divided into three (3) steps: 1. Confirm registered as a prospective leaseholder. Only those bidders who are registered as prospective leaseholders with the Office of Mineral Resources shall be allowed to bid. (LA R. S. 30: 127(A)) 2. Prepare the bid packet. The bidder shall place all of the items required to be included in the bid packet in an envelope, completely seal the envelope, write the official tract number on the outside of the envelope, and notate on the outside of the envelope that Sealed Bid is Enclosed. 3. Submit the sealed bid packet. A party bidding on a state or state agency tract for a lease for oil, gas and other liquid or gaseous minerals shall use the official Bid Form.

BID SUBMISSION PROCESS – BID PACKET The Bid Packet must include the following: A. Bid Form Completely Filled Out and Signed (Offer shall not be valid unless the Bid Form is signed); B. Written Legal Property Description using x, y coordinates or Section, Township and Range where applicable. (paper and MSWord file); C. Bid Plat (paper and PDF); D. DXF File; E. Bid DVD or CDROM (Portion Bid must contain written property description, plat, and dxf file. ) F. Cash Payment; 1. The cash payment must be submitted on either a certified check, cashier’s check or bank order and shall exactly match the cash payment amount specified on the official Bid Form; 2. Cash payment amount consist of a Bonus Payment and an Annual Rental; 3. The Annual Rental shall net be less than one-half (1/2) the full amount of the Cash Bonus not the per acre amount.

THE OMR BID FORM Web Page Address: http: //dnr. louisiana. gov/ Click here to advance to next page

THE OMR BID FORM Click on Forms & Publications to Advance to Next Web Page

THE OMR BID FORM Click Here to Download Bid Form in PDF Format

THE OMR BID FORM Page 1 Requirements: 1. Must be registered with the OMR. (LSA-RS 30: 127(A)) 2. Please fill in all the required information.

THE OMR BID FORM Page 2 Requirements: 1. The cash bonus payment: • The cash payment must be submitted on either a certified check, cashier’s check or bank order. • The check shall exactly match the cash payment amount specified on the official Bid Form. 2. The Annual Rental • shall net be less than one -half (1/2) the full amount of the Cash Bonus not the per acre amount. 3. Please Sign

THE OMR BID FORM Page 3 Requirements: Please do not submit this page with Bid Form if not submitting a joint bid.

BID SUBMISSION PROCESS – BID PACKET G. Royalty to be paid on any production from the leased premises. (LA R. S. 30: 127(C) requires that the minimum royalties to be stipulated in any lease shall not be less than one-eighth of all oil and gas produced and saved); H. 10% Leasing Fee; I. $30. 00 Per Acre Payment Ø The applicant must placed all the required materials in a sealed envelope marked outside with track number being bid on. Ø The checks must be remitted in the following format: A. Cash Bonus Check – certified (official) check, cashier’s check or bank money order and must match the Bid Form Amount. B. Ten Percent Leasing Fee – personal or business check; C. Thirty Dollar Per Acre Fee – personal or business check

BID SUBMISSION PROCESS – BID PACKET Ø The Bid Packet must be received before the bid submission deadline published in the official State Mineral Board Schedule to the Office of Mineral Resources. The schedule is set by board policy. Ø The current State Mineral Board Schedule requires that the Bid Packet be turn in no later than noon of Tuesday before Wednesday State Mineral and Energy Board meeting unless otherwise notified. A bid one (1) minute late cannot be accepted. Ø Bids may be for the whole or any particularly described portion of land advertised. (LA R. S. 30: 127(A)) Ø Bids received by the mineral board shall be opened on the date and time stated in the advertisement at any state-owned buildings situated in the city in which the capitol is located. The State Mineral Board holds mineral lease sales in the La. Belle Room, also known as the Conservation and Mineral Resources Hearing Room, located on the 1 st Floor of the La. Salle Building at 617 North Third Street, Baton Rouge, Louisiana.

PORTION BID LA R. S. 30: 127(D) The Board may reject any and all bids, or may lease a lesser quantity of property than advertised and withdraw the rest.

PORTION BID SCENARIOS Single Lease (Bid) Single Lease (Awarded)

PORTION BID SCENARIOS Multiple Lease (Bid) Multiple Lease (Awarded)

PORTION BID SCENARIOS Overlapping Lease (Bid) Overlapping Lease (Awarded)

BOARD’S ACTION ON BIDS Ø At the call of the Governor, the Board convenes at 11: 00 AM of the second Wednesday of the month. Ø The Board may reject any and all bids, or may lease a lesser quantity of property than advertised and withdraw the rest. Ø If all written bids are rejected, the Board may immediately offer for competitive bidding a lease upon all or any designated part of the land advertised, upon terms appearing most advantageous to the state. This offering shall be subject to the Board's right to reject any and all bids. Ø No lease shall be for more than five thousand acres. Ø Bids are examined and evaluated by the Board’s staff to confirm compliance with legal, procedural and technical requirements. Ø Board’s staff will provide it with the information and technical advice needed to accept the bid most advantageous to the state. The staff reviews all bids received and accepted in order to provide the Board with recommendations to either accept or reject the bids.

AFTER LEASE IS AWARDED 1. Bids that are rejected by the State Mineral and Energy Board and bids on withdrawn tracts may be picked up from Office of Mineral Resources (OMR) personnel immediately following the state mineral lease sale. Any such bids not picked up shall be returned to the bidder via mail to the address provided on the official Bid Form. All rejected bids are returned to bidders; 2. Office of Mineral Resources staff examines the successful bid to verify the. dxf files, legal description, plats and acreage; 3. Bidders awarded option bids are given 48 hours to accept or reject option leases; 4. Once everything is verified, including option leases, OMR prepares the lease contracts by entering all appropriate data from the lease sale and then circulates the final contracts of lease for execution; 5. The prepared lease contract are executed by the appropriate parties for the State of Louisiana; 6. Leases executed by the State are sent to the successful bidders for execution and recordation;

AFTER LEASE IS AWARDED 7. The mineral lessee has twenty (20) days from the date on the certified mail receipt or, if no date is affixed thereon, from the date the Office of Mineral Resources receives the certified mail receipt, to return one (1) fully executed original lease contract and the recordation information from each parish wherein the lease is recorded to the Office of Mineral Resources; 8. Failure to return one (1) fully executed original lease contract and the recordation information from each parish wherein the lease is recorded within twenty (20) days may result in forfeiture of the lease including the cash payment and Ten Percent (10%) Leasing Fee. 9. New lease polygon is entered on the active lease GIS layer; and 10. New lease data is entered into the SONRIS system and a hardcopy is filed in the file room.

GIS LEASE LAYER