HLS 12RS-93 ORIGINAL Page 1 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2012 HOUSE BILL NO. 678 BY REPRESENTATIVE JIM MORRIS (BY REQUEST) MINERALS: Provide for restoration of certain oilfield sites AN ACT1 To amend and reenact R.S. 30:29(C)(1) and (H), relative to the evaluation and remediation2 of oilfield sites and exploration and production sites; to provide for the evaluation3 and remediation of certain sites without admitting certain liability; to provide for the4 joinder of parties; to provide for notice; to provide for the approval and review of the5 plan to evaluate or remediate; to provide for an effective date; and to provide for6 related matters.7 Be it enacted by the Legislature of Louisiana:8 Section 1. R.S. 30:29(C)(1) and (H) are hereby amended and reenacted to read as9 follows:10 ยง29. Remediation of oilfield sites and exploration and production sites11 * * *12 C.(1) If at any time during the proceeding a party admits liability for13 environmental damage or the finder of fact determines that environmental damage14 exists and determines the party or parties who caused the damage or who are15 otherwise legally responsible therefor, the court (a)(i) The plaintiff or any defendant16 may seek the joinder of any party alleged to be responsible for such environmental17 damage arising from activities subject to the jurisdiction of the Department of18 Natural Resources, office of conservation. Notwithstanding that the provisions of19 the Code of Civil Procedure provide for no time delays for joinder, such joinder shall20 be sought within one hundred twenty days of an original or amended petition making21 HLS 12RS-93 ORIGINAL HB NO. 678 Page 2 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. a judicial demand alleging such environmental damage, or within one hundred1 twenty days after July 1, 2012, for suits filed before that date.2 (ii) A third person having an interest may intervene in a pending action to3 enforce a right related to a judicial demand alleging environmental damage arising4 from activities subject to the jurisdiction of the Department of Natural Resources,5 office of conservation. Notwithstanding that the provisions of the Code of Civil6 Procedure provide for no time delays for intervention, such intervention shall be7 within one hundred twenty days of an original or amended petition making a judicial8 demand alleging such environmental damage, or with one hundred twenty days after9 July 1, 2012, for suits filed before that date.10 (iii) Evidence of contamination may be submitted to the court only if proper11 notice has been given by the party testing the alleged contamination prior to the12 testing of the alleged contamination. Proper notice shall be given at least thirty days13 prior to the commencement of the testing, shall be issued by registered mail and shall14 be given to all parties to the action, the court, and the department. Any evidence of15 contamination submitted with the original pleadings shall be admissible in court.16 Any evidence of contamination submitted to the court prior to the enactment of this17 legislation shall be admissible in court.18 (b) A party to the action may admit responsibility for environmental damage19 and shall give the court and the department notice of the admission after the20 expiration of the delays for the joinder of parties and for intervention of third parties21 provided for in Subparagraph (a) of this Paragraph.22 (c) Upon receipt by the department of an admission of responsibility under23 Subparagraph (b) of this Paragraph by any party or notice of a finder of fact's24 determination that environmental damage exists and determination of the party or25 parties who caused the damage, the department shall issue personal notice and public26 notice of such admission or determination to all current and past operators of record,27 insofar as practicable, based on the records of the department. Personal notice shall28 be given by certified mail return receipt requested. Public notice shall be sufficient29 HLS 12RS-93 ORIGINAL HB NO. 678 Page 3 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. if it contains a description of the property, by field and section, in dispute and the1 caption of the original or amended petition alleging environmental damage. A full2 copy of such petition shall be made available for public inspection in the offices of3 the department and on the department's website. The notice provided for in this4 Subparagraph shall constitute judicial advertisement and legal notice provided for5 in R.S. 43:200 et seq.6 (d) Upon receipt of the admission of responsibility or the finder of fact7 determination of a party causing environmental damage, the court shall, without8 undue delay, and in no case longer that fourteen days, refer the development and9 approval of the most feasible plan to the department. The department shall order the10 party or parties who admit responsibility or whom the court finder of fact finds11 legally responsible for the damage to develop a plan or submittal for the evaluation12 or remediation to applicable standards of the contamination that resulted in the13 environmental damage. The court department shall order that the plan be developed14 and submitted to the department and the court within a time that the court determines15 is reasonable and shall allow the plaintiff or any other interested party at least thirty16 days from the date each plan or submittal was made to the department and the court17 to review the plan or submittal and provide to the department and the court a an18 alternative plan, comment, or input in other response thereto. Any plan or submittal19 shall include an estimate of the cost to implement the plan. The department shall20 consider any plan, comment, or response provided timely by any interested party.21 The department shall submit to the court a schedule of estimated costs for review of22 the plans or submittals of the parties by the department and the court shall require the23 party or parties admitting responsibility or the party found legally responsible by the24 court finder of fact to deposit in the registry of the court sufficient funds to pay the25 cost of the department's review of the plans or submittals. Any plan or submittal26 shall include an estimation of cost to implement the plan. When any party has27 admitted responsibility within one hundred eighty days after the expiration of the28 delay for the joinder of parties provided for in Paragraph (a) of this Subsection, the29 HLS 12RS-93 ORIGINAL HB NO. 678 Page 4 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. court shall not proceed to a trial on any claim until after a plan to evaluate and1 remediate the environmental damage, approved by the department, has been2 submitted to the court. Parties may proceed to the pre-trial process during the delay3 to trial, which includes but is not limited to pre-trial motions and discovery.4 (e) An admission of responsibility under Paragraph (b) of this Subsection5 shall be an admission of responsibility solely for purposes of the evaluation and6 remediation to applicable regulatory standards of the contamination that resulted in7 the environmental damage and shall not be construed as an admission of liability, nor8 shall such admission be treated by the court as a waiver of any rights or defenses;9 however, such admission shall be admissible in court.10 * * *11 H. This Section shall not preclude an owner of land from pursuing a judicial12 remedy or receiving a judicial award for private claims suffered as a result of13 environmental damage, except as otherwise provided in this Section. Nor shall it14 preclude a judgment ordering damages for or implementation of additional15 remediation in excess of the requirements of the plan adopted by the court pursuant16 to this Section as may be required in accordance with the terms of an express17 contractual provision; however, any plan or remediation approved by the department18 shall be admissible as evidence in any action brought by the claimant in a court of19 law. Also, the provisions of this Section, including any admissions made pursuant20 to this Section, shall be published to the jury. Any award granted in connection with21 the judgment for additional remediation is not required to be paid into the registry22 of the court. This Section shall not be interpreted to create any cause of action or to23 impose additional implied obligations under the mineral code or arising out of a24 mineral lease.25 * * *26 Section 2. This Act shall become effective on July 1, 2012. If vetoed by the27 governor and subsequently approved by the legislature, this Act shall become effective on28 the day following such approval.29 HLS 12RS-93 ORIGINAL HB NO. 678 Page 5 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Jim Morris HB No. 678 Abstract: Provides for restoration of certain oilfield sites. Proposed law limits the joinder of parties to within 120 days from the date of an original or amended petition making a judicial demand or within 120 das after July 1, 2012, for suits filed before that date. Proposed law limits a third-party intervening in an action alleging environmental damage arising from activities subject to the jurisdiction of the Dept. of Natural Resources to within 120 days from the date of an original or amended petition making a judicial demand or within 120 days after July 1, 2012, for suits filed before that date. Proposed law provides that evidence of contamination may be submitted to the court only if proper notice has been given by the party testing the alleged contamination prior to the testing of the alleged contamination. Proposed law provides that proper notice shall be given at least 30 days prior to the commencement of the testing, shall be issued by registered mail, and shall be given to all parties to the action, the court, and the department. Proposed law provides that any evidence of contamination submitted with the original pleadings shall be admissible in court and that any evidence of contamination submitted to the court prior to the enactment of this legislation shall be admissible in court Proposed law provides that a party to the action may admit responsibility for environmental damage and shall give the court and the department notice of the admission after the expiration of the delays for the joinder of parties and for intervention of third parties provided for in proposed law. Proposed law provides that upon receipt by the department of an admission of responsibility by any party or notice of a finder of fact's determination that environmental damage exists and determination of the party or parties who caused the damage, the department shall issue personal notice and public notice of such admission or determination to all current and past operators of record, insofar as practicable, based on the records of the department. Proposed law provides that personal notice shall be given by certified mail return receipt requested and that public notice shall be sufficient if it contains a description of the property, by field and section, in dispute and the caption of the original or amended petition alleging environmental damage. Proposed law requires that a full copy of such petition be made available for public inspection in the offices of the department and on the department's website and that the notice provided for in proposed law shall constitute judicial advertisement and legal notice provided for in R.S. 43:200 et seq. Present law provides that if at any time during the proceeding a party admits liability for environmental damage or the finder of fact determines that environmental damage exists and determines the party or parties who caused the damage or who are otherwise legally responsible therefor, the court shall order the party or parties who admit responsibility or whom the court finds legally responsible for the damage to develop a plan or submittal for HLS 12RS-93 ORIGINAL HB NO. 678 Page 6 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. the evaluation or remediation to applicable standards of the contamination that resulted in the environmental damage. Proposed law retains present law except provides that the court will refer the matter to the department after an admission of responsibility or the finder of fact has determined the party who caused the environmental damage. The department then orders the development of the plan. Present law provides that court shall order that the plan be developed and submitted to the department and the court within a time that the court determines is reasonable and shall allow the plaintiff or any other party at least 30 days from the date each plan or submittal was made to review the plan or submittal and provide to the department and the court a plan, comment, or input in response. Provides that the department shall consider any plan, comment, or response timely provided. Also provides that the department shall submit to the court a schedule of estimated costs for such review and the court shall require the party admitting responsibility or the party found legally responsible by the court to deposit in the registry of the court sufficient funds to pay the cost of the department's review. Any plan or submittal shall include an estimation of cost to implement the plan. Proposed law retains present law except that the department orders the plans and instead of any party providing a plan, comment, or response, it must be an interested party. Present law provides that present law shall not be interpreted to create any cause of action, or additional obligations under the Mineral Code or arising out of a mineral lease. Present law does not preclude an owner of land from pursuing a judicial remedy or receiving a judicial award for private claims suffered as a result of environmental damage, nor preclude a judgment ordering damages for or implementation of additional remediation in excess of the requirements of the plan as may be required in accordance with the terms of an express contractual provision. Any award granted in connection with the judgment for additional remediation is not required to be paid into the registry of the court. Proposed law provides that any plan or remediation approved by the department shall be admissible as evidence in any action brought by the claimant in a court of law. Also, the provisions of present law, including any admissions made, shall be published to the jury. Effective July 1, 2012. (Amend R.S. 30:29(C)(1) and (H))