Provides for pooling of ultra deep drilling structures. (8/1/12)
The bill impacts state laws governing oil and gas extraction by providing a framework for establishing ultra deep structure units. It allows for the consolidation of separately owned property in order to facilitate more efficient resource management and allocation of costs associated with drilling operations. By allowing the commissioner to issue orders based on specific geological and operational criteria, the bill aims to foster a more favorable environment for the energy sector, which proponents argue is vital for state economic growth.
Senate Bill 469, introduced by Senator Morrish, addresses the pooling of ultra deep drilling structures to encourage oil and gas exploration in Louisiana. The bill amends the existing statute to authorize the commissioner of conservation to create units for ultra deep structures, specifically targeting wells that exceed a depth of 22,000 feet. This legislation aims to prevent waste and unnecessary drilling by promoting the use of unit operations for resource extraction, thereby streamlining efforts to develop Louisiana’s oil and gas reserves.
The surrounding sentiment regarding SB 469 appears largely supportive among industry stakeholders, who view it as a crucial legislative step in maximizing Louisiana’s energy resources while ensuring responsible and efficient extraction methods. However, there may also be concerns from environmental advocates regarding the implications of increased drilling activities and the potential for ecological impacts, suggesting a need for careful oversight in the implementation of the law.
Notably, the legislation requires that any order for unit operation must follow proper notice and public hearings, which highlights the balance between promoting development and ensuring that stakeholders are adequately informed and involved in the decision-making process. This provision reflects an understanding of the differing interests at play, as landowners and environmental groups may have varying concerns regarding the implications of such drilling activities on their communities.