NOTICE OF PUBLICATION
By virtue of and in conformity with the provisions of Chapter 2, Title 30, of the Louisiana Revised Statutes of 1950, as amended, sealed bids will be received at the office of the Board of Commissioners for the Atchafalaya Basin Levee District at Port Allen, Louisiana, up to 2:00 p.m., Wednesday, May 1, 2013, for lease of the oil, gas and/or liquid or gaseous hydrocarbon mineral rights in and to the following lands situated in the Parish of Iberville, State of Louisiana, to wit, bid related materials may be obtained and electronic bids may be submitted online at www.centralbidding.com. Said bids will be publicly opened at the office of said Board in Port Allen, Louisiana on May 1, 2013, at 4:00 p.m.:
Section 24: Lot 1 of Section 24, T10S-R10E, being the fractional Southwest Quarter (SW/4) of Section 24, being the un-surveyed portion of that Section south of Irregular Section 92 and 93 of T10S-R10E, containing 25.42 acres, more or less.
All bids to offer cash payment for a lease having a primary term which shall not exceed three (3) years. The MIMIMUM ROYALTIES required by R.S. 30:127, as amended, are one-eighth (1/8) of all oil, produced and saved or utilized; one-eighth (1/8) of all gas produced and saved or utilized; and one-eighth (1/8) of all other liquid or gaseous minerals in solution and produced with oil or gas and saved or utilized, which are not specifically mentioned herein. Free sulphur, potash, lignite, salt and other solid minerals are to be excluded and any bid thereon will be disregarded to such extent. A bid of a royalty less than the aforesaid statutory minimums will be increased to said statutory minimums by the Board.
Should the lessee fail to begin the actual drilling (spudding in) of a well on the leased premises within one year from the date of the lease, the lease shall terminate as to both parties to the lease, unless on or before such anniversary date lessee shall pay a delay rental (which in no event shall be less than one-half of the cash payment offered), which shall cover the privilege of deferring drilling operations for a period of one year. Upon like payments annually, drilling operations may be further deferred for successive periods of one year each during the primary term. The primary term of the lease shall be three years. The lease shall provide for the drilling of offset wells where necessary to protect the lessor’s interest and shall contain the provisions against the assignment of sublease of the lease unless approved by the board of Commissioners for the Atchafalaya Basin Levee District.
Certified check, cashier’s check or bank money order, payable to the Board of Commissioners for the Atchafalaya Basin Levee District for the full amount of the cash payment shall accompany and be deposited with each bid and no bid or deposit may be thereafter withdrawn or cancelled; and the cash payment thus deposited shall be forfeited to the Board of Commissioners for the Atchafalaya Basin Levee District by the successful bidder in the event said bidder does not enter into written contract within TWENTY (20) DAYS AFTER THE WRITTEN LEASE IS SUBMITTED TO HIM FOR EXECUTION. Additionally, bidder will be required to submit a good faith deposit in the amount of $100.00 with bid when submitted. This deposit shall be in the form of cash, cashier’s check, certified check, or bank money order. The deposit shall be forfeited by the successful bidder in the event the contract is not entered into within twenty days after lease is submitted to him for execution.
The lessee shall have the right to enter into pooling or unitization agreements with respect to development of the leased premises subject to the approval of the Board of Commissioners for the Atchafalaya Basin Levee District.
Prospective bidders are put on notice that the lease will be executed without any warranty of title, even as to the return of cash payment, rentals or royalties.
In addition, said lease will contain a provision requiring the lessee to attempt to market any natural gas produced to an intrastate purchaser, provided same can be at a competitive price.
THIS BOARD ADVISES ALL POTENTIAL BIDDERS THAT THE MINIMUM ROYALTIES ARE NOT TO BE CONSTRUED AS ACCEPTABLE VALUES; AND THAT THE BOARD PREFERS ROYALTY BIDS OF 25% (1/4) OR GREATER AND WILL, LESS AND EXCEPT MITIGATING CIRCUMSTANCES, VIEW BIDS OF LESS THAN 25% (1/4) ROAYLY AN INSUFFICIENT ROYALTY CONSIDERATION OF OIL, GAS AND OTHER MINERALS LEASES ON ITS LANDS. THE BOARD WILL PREFER NOT LESS THAN $200.00 PER ACRE BONUS.
Any bid may be for the whole or any particularly described portion of the above described lands and the Board of Commissioners for the Atchafalaya Basin Levee District reserves the right to reject any and all bids, or to grant a lease on any portions of said land and to withdraw the remainder.
In the event that a portion of lands is bid, a surveyed plat shall be submitted showing the portion of the land bid upon.
BOARD OF COMMISSIONERS FOR THE
ATCHAFALAYA BASIN LEVEE DISTRICT
Janice Jarreau John Grezaffi