If you own mineral or royalty interests in Louisiana, understanding the Law of Prescription could save you from losing your mineral rights. This unique legal concept in Louisiana oil and gas law can surprise many owners with interests in this state—especially those who aren’t actively leasing or developing their interests.
In this article, we’ll break down the Law of Prescription, how it affects mineral owners in Louisiana, and why it matters if you plan to sell minerals in Louisiana.
What is the Law of Prescription in Louisiana?
In simple terms, “prescription” in Louisiana law is similar to a statute of limitations—a deadline for exercising certain rights. When it comes to mineral rights and royalty interests, prescription laws can cause your rights to expire if they’re not used within a specific period.
For mineral rights, the most common prescription period is 10 years. If no activity (such as drilling, leasing, or producing) occurs during that time, you could lose ownership through prescription—even if you didn’t intend to give it up.
Why Does it Exist?
1. To Encourage Mineral Development
Louisiana is a resource-rich state, and unused mineral interests can hinder energy production. The Law of Prescription encourages landowners to lease mineral rights or work with developers to bring oil and gas to market.
This ensures that mineral resources in Louisiana contribute to economic development rather than sit dormant.
2. To Prevent Title Confusion
Over time, mineral rights often pass down through generations. Without clear records or active leases, ownership becomes difficult to verify, creating legal complications for operators, buyers, and heirs.
Prescription laws help simplify title by eliminating abandoned or inactive mineral interests, especially when heirs or distant relatives are unaware of their ownership.
3. To Align with Louisiana’s Civil Law System
Unlike most states, Louisiana follows a civil law system—influenced by French and Spanish traditions. In this system, “prescription” replaces common-law doctrines like adverse possession or statutes of limitation.
This makes prescription law an essential part of Louisiana property and oil and gas law, including both mineral rights and royalty interests. Don’t know the difference? Find out here.
4. To Support Efficient Resource Management
The Law of Prescription ensures that mineral rights are either used productively or returned to the surface owner, keeping the market efficient and reducing delays in oil and gas development projects.
Now, all the above sound good—and they are, but in the end the ultimate goal is to create tax dollars for the state, simple as that. If minerals aren’t being sold or developed, the state isn’t receiving any tax money.
Don’t let anyone tell you otherwise.
How Prescription Impacts Mineral and Royalty Owners?
Louisiana’s mineral code is very different from other oil and gas producing states. Here’s how prescription might affect your ownership:
- Non-Producing Mineral Rights: If your mineral rights are not under an active lease or not producing oil or gas for 10 years, the rights may revert to the surface owner.
- Royalty Interests: Royalty owners aren’t usually subject to prescription in the same way mineral owners are, however, if a royalty interest is carved out of a mineral interest and the minerals prescribes, the minerals and royalties will typically revert back to the surface owner. If you’re unsure whether you own minerals, royalties, or both, you absolutely need to find out. We can help.
- Unleased Interests: If you inherited mineral rights but never signed a lease or received royalties, your interest could be at risk.
Why This Matters When Selling Mineral or Royalty Interests
If you’re considering selling mineral rights in Louisiana, understanding prescription is critical for two reasons:
1. Valuation
Mineral buying companies factor in whether your interests are at risk of expiring. If your minerals are close to the 10-year prescription period with no activity, it could lower the value—or possibly render them worthless.
In my experience, if your minerals in Louisiana are not in an already productive area and also not producing, mineral buyers won’t even consider making an offer.
2. Ownership Risk
Some sellers assume they still own minerals, only to discover they’ve already prescribed. We can assist with confirming your ownership status before selling.
2 Tips to Protect Your Interests from an Expert
To protect your mineral or royalty rights from prescription:
- Own the Surface: If you intend or desire to own the minerals under a tract of land in perpetuity to pass to your heirs, you should without a doubt own the surface. This way, after 10 years the minerals will stay with you or your heirs. This is the only surefire way of keeping the minerals and royalties past the 10 year expiration.
- Start Operations or Drill a Well: The only thing that holds mineral rights past the 10 year prescription law is drilling a productive well. Significant operations, like building a substantial pad and even drilling a dry hole will help “interrupt” the clock, but as soon as that well is determined to be dry and there is no production, if you’re past the 10 year clock, the minerals revert to the surface owner.
Consult a Louisiana Oil and Gas Attorney: Legal advice is crucial if you think prescription might apply to your interest.
Should I Sell My Minerals in Louisiana?
Selling can make sense in some situations but timing couldn’t be more important for Louisiana minerals—especially if you’re no longer receiving royalties or if prescription is looming. It’s vital to work with a reputable Landman who understands Louisiana’s prescription laws before considering selling, or even buying minerals in Louisiana.
We can help to establish a chain of title and most importantly, help you understand what you own before you sell. It’s our number #1 rule when it comes to selling your minerals—always know exactly what you own!
Read our blog: The #1 Worst Mistake Mineral and Royalty Owners Make.
Need Help Selling Mineral Rights in Louisiana?
Louisiana’s Law of Prescription is unique and can lead to unintended loss of mineral rights if you’re not careful. If you’re a mineral or royalty owner in Louisiana, especially in parishes like Caddo, Bossier, or DeSoto, it pays to know the clock might be ticking on your interests.
If you are serious about selling, it’s important to work with a professional that is on your side. Going at it alone can leave thousands—if not hundreds of thousands—on the table. Before doing anything permanent, gather all your oil and gas documents, and give us a call or schedule a consultation.
If you are receiving offers from mineral rights buyers, don’t sign or agree to anything without having an oil and gas advocate on your side. Venergy Momentum has an A+ BBB rating, 5-star Google reviews, and client testimonials.
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