§10.1. Authority of governor with advice of the secretary to enter unitization agreements
affecting the production from state and federal waterbottoms
A. Offshore production agreement. The governor or his designee is authorized to
enter into an Offshore Production Agreement with the United States government concerning
the procedures for joint conservation practices concerning minerals in common hydrocarbon
bearing areas that underlie the federal and state boundary offshore of Louisiana.
B. Unit agreement. (1) In accordance with the terms of such Offshore Production
Agreement or any act of the United States Congress providing with respect thereto, the
governor or his designee is authorized to enter into agreements for the unit operations of all
or any portion or portions of any common potentially hydrocarbon bearing area underlying
the federal and state boundary offshore if reasonably necessary to prevent waste, protect
correlative rights, or avoid the drilling of unnecessary wells.
(2) The authority of the governor or his designee to enter into unit agreements under
this Subsection shall extend to all affected state lands, whether leased or unleased at the time,
and all persons having interests therein.
(3) Upon a determination by the governor that a common potentially hydrocarbon
bearing area may underlie the federal and state boundary offshore, all or any portion or
portions of which the governor has reason to believe may be appropriate for unit operations,
the governor shall direct the secretary to call a hearing for the purpose of receiving evidence
from affected state or federal lessees or from any other interested persons. The secretary
shall, after a review of all testimony and evidence, transmit to the governor an advisory
opinion containing such information and recommendations as may be requested by the
governor. The advisory opinion shall be deemed confidential and shall be exempt from the
provisions of R.S. 44:1 et seq., in accordance with the provisions of R.S. 44:4(8) and 4.1(B).
(4) After a final unit agreement by the state of Louisiana and the United States or by
final decision of an arbitrator or court of competent jurisdiction, or otherwise, the secretary
shall, if directed by the governor, issue an order ratifying the terms of the agreement or final
decision. In the event that a reservoir-wide unit is created, the secretary is exempt from the
requirements of R.S. 30:5(B) and (C) in issuing such order. Neither the agreement nor any
order issued pursuant to it shall be subject to the provisions of R.S. 30:12.
(5) The secretary shall have full authority to enforce the unit agreement and order in
the same manner as any other order issued under the provisions of this Chapter, and to issue
such additional rules, regulations, or orders as may be necessary to accomplish the purposes
of this Section.
Acts 1988, No. 651, §1, eff. July 15, 1988; Acts 2010, No. 861, §13; Acts 2025, No.
458, §1, eff. Oct. 1, 2025.