On April 29^th, the Louisiana Mineral and Energy Board will hold a special meeting to consider adopting a resolution to assist lessees of oil and gas leases issued by the State of Louisiana.  As the proposal is currently drafted, the State would grant a temporary moratorium of all lease maintenance obligations for the time period of March 11^th until July 13^th and would allow an additional thirty days thereafter for the lessee to recommence lease maintenance payments, operations or production.  Importantly, however, the proposed resolution would not affect royalty payments; if production is obtained during this time period, then royalties must be timely paid on that production.  The proposed resolution also would suspend all demands for reasonable development for the time period of March 11^th until August 13^th.

In addition, the Mineral Board will also consider the postponement, waiver, delay and suspension of penalties accrued during the time period of March 11^th until August 12^th for the settlement of royalty disputes and other lease or statutory obligations.

We are reviewing these proposals and will be forwarding suggested revisions and comments to the Mineral Board in advance of its meeting.  If you have any comments or proposed changes, let us know as soon as possible.  We may incorporate them in our submission to the Mineral Board.  If you have any questions, do not hesitate to contact Cynthia Nicholson or Peck Hayne.