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SB 379

NATURAL RESOURCES DEPT: Provides for the Department of Conservation and Energy. (8/1/26)

2026 Regular Session Introduced by Bob Hensgens

The bill reorganizes the Department of Conservation and Energy, renames the Office of Mineral Resources to the Office of State Resources, and clarifies leasing authority for state

Signed by the Speaker of the House.
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Bill Summary · SB 379

Summary of SB 379 (2026) – Louisiana

Main purpose and intent

  • Reorganizes and renames certain components of the Department of Conservation and Energy (C&E) and its related agencies.
  • Specifically changes the office currently known as the Office of Mineral Resources to the Office of State Resources; updates references from the former title “commissioner of conservation” to the secretary of the Department of Conservation and Energy.
  • Clarifies and updates the authorization and administration of state land leasing for minerals, oil, gas, and alternative energy sources.
  • Adjusts certain financial and procedural provisions to align with current organizational changes and improve oversight and flexibility.

Key provisions and changes

  • Reorganization and terminology updates

    • The Office of Mineral Resources is renamed the Office of State Resources.
    • The title “commissioner of conservation” is replaced with the “secretary” of the Department of Conservation and Energy.
    • Louisiana Law Institute instructions updated to reflect these terminology changes.

  • Leasing authority and land use

    • The State Mineral and Energy Board (the board) continues to lease state property for mineral exploration, oil/gas development, and alternative energy (including solar, wind, geothermal, hydrokinetic), but the bill clarifies that leases of state and other public lands may be for development and production of minerals, oil, gas, or alternative energy sources as provided by law.
    • The board can lease for the development and production of minerals, oil, gas, or alternative energy sources, and the mechanism remains the same as current law for applications, bidding, and advertisement.
    • The bill preserves the framework under which political subdivisions (such as ports and school boards) can request leasing through the board.

  • Minimum royalties and pricing flexibility

    • Present law generally sets minimum royalties at 1/8 (12.5%) for oil and gas, sulfur, and potash; 5% of value per ton for salt; 5% of value per ton for lignite; and 1/20th (5%) of value for certain other minerals.
    • Senate amendments authorize the board to set minimum royalties less than 1/8 but greater than 1/16 (i.e., between 6.25% and 12.5%) in circumstances where market conditions or economic factors warrant a reduction.
    • This adds a degree of flexibility for the board to respond to market conditions.

  • Agency leasing of land (state and other public lands)

    • The bill clarifies that agencies may direct the board to lease land for the development and production of minerals, oil, gas, or alternative energy sources, aligning with present law but emphasizing broad applicability to agency-initiated leasing.

  • Treasury investments and funds

    • Present law allows the treasurer to invest funds in certain Natural Resources-related accounts.
    • The bill retains present-law investment authority for most funds but removes the treasurer’s authority to invest trust authority funds in the Louisiana Asset Management Pool (LAMP) and instead permits investments in separate portfolios.

  • Judicial review and intervention in administrative decisions

    • The bill retains existing procedures for judicial review of administrative decisions.
    • It adds that the filing delays (time to file a suit for review) tolling starts from the date the administrative decision is posted on the department’s website.
    • It also allows third parties with an interest in the underlying decision to intervene in the suit for review.

  • Effective date

    • Effective August 1, 2026, subject to gubernatorial action.

Who/what is affected

  • State agencies and political subdivisions that interact with the State Mineral and Energy Board for leasing of state or public lands for minerals, oil, gas, and alternative energy projects.
  • The Department of Conservation and Energy, including its renamed Office of State Resources.
  • The Louisiana State Law Institute (in updating references).
  • The Louisiana Treasurer (in terms of investment practices for certain funds).
  • Parties with interests in administrative decisions from the department (due to added rights of intervention in judicial review).

Procedural and timeline aspects

  • The bill includes several Senate Committee amendments to technical provisions, including changes to references and some added/removed sections.
  • Effective date set to August 1, 2026.
  • Administrative decisions: tolling period for suit-for-review begins when the decision is posted to the department’s website; third-party intervention rights are clarified.

Note: The summary reflects the amendments adopted by the Senate Natural Resources Committee and floor actions as described in the bill’s digest and amendment history.

Compiled from official sources — confirm details with the bill’s official record.

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