SLS 12RS-652 ORIGINAL Page 1 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2012 SENATE BILL NO. 528 BY SENATOR LONG MINERALS. Provides for remediation of oilfield sites and exploration and production sites. (8/1/12) AN ACT1 To amend and reenact R.S. 30:29, relative to remediation; to provide relative to remediation2 of certain sites by the Department of Natural Resources; to provide relative to the3 remediation of oil and gas and other sites; to provide terms, conditions, procedures,4 requirements, definitions, and standards; to provide relative to duties and5 responsibilities of certain agencies; to provide relative to certain actions or claims6 involving environmental damage; to provide relative to parties, proceedings, orders,7 judgments, and awards by the court; to provide relative to remediation and cleanup8 arising from such actions or claims; to provide relative to oilfield sites and9 exploration and production sites; to provide for landowner notification of10 environmental testing; and to provide for related matters.11 Be it enacted by the Legislature of Louisiana:12 Section 1. R.S. 30:29 is hereby amended and reenacted to read as follows: 13 ยง29. Remediation of oilfield sites and exploration and production sites14 A. The legislature hereby finds and declares :15 (1) that Article IX, Section 1 of the Constitution of Louisiana mandates that16 the natural resources and the environment of the state, including ground water, are17 SB NO. 528 SLS 12RS-652 ORIGINAL Page 2 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. to be protected, conserved, and replenished insofar as possible and consistent with1 the health, safety, and welfare of the people and further mandates that the legislature2 enact laws to implement this policy. It is the constitutional duty of the legislature3 to set forth procedures to ensure that damage to the environment is remediated to a4 standard that protects the public interest. To this end,5 (2) The standard for remediating environmental damage to a level that6 protects the public interest is established by regulations adopted by the7 department pursuant to this Subtitle. The provisions of this Section are8 intended to protect the public interest by ensuring the evaluation or9 remediation of environmental damage to regulatory standards. Every person10 who causes environmental damage has an obligation to remediate such damage11 to regulatory standards.12 (3) The provisions of this Section shall not be construed to limit the right13 of private litigants to assert private claims for remediation damages based on14 standards imposed by law or private contracts in excess of the requirements of15 applicable regulations or for remedies other than remediation damages as16 provided by law or private contracts. The provisions of this Section shall not be17 construed to create any cause of action or to impose additional implied18 obligations under the Louisiana mineral code or arising out of a mineral lease.19 (4) This this Section provides the procedure for judicial resolution of claims20 for environmental damage to property arising from activities subject to the21 jurisdiction of the Department of Natural Resources, office of conservation. The22 provisions of this Section shall be implemented upon receipt of timely notice as23 required by Paragraph (B)(1) of this Section. The provisions of this Section shall not24 be construed to prohibit or impede or limit provisions under private contracts25 imposing the evaluation or remediation obligations in excess of the requirements26 of of environmental damage by any person performed for the purpose of27 complying with an administrative order issued by the department or limit the right28 of a party to a private contract to enforce any contract provision. Nor shall anything29 SB NO. 528 SLS 12RS-652 ORIGINAL Page 3 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. in this Section preclude the department from independently responding in a1 court of proper jurisdiction. timely manner to an inquiry or request by a2 landowner for investigation.3 B.(1) Notwithstanding any law to the contrary, immediately upon the filing4 or amendment of any litigation or pleading making a judicial demand arising from5 or alleging environmental damage, the provisions of this Section shall apply and the6 party filing same shall provide timely notice to the state of Louisiana through the7 Department of Natural Resources, commissioner of conservation and the attorney8 general. within ten days of the filing or the amendment. The litigation shall be9 stayed with respect to any such judicial demand until thirty days after such notice is10 issued and return receipt is filed with the court.11 (2) The department or the attorney general, in accordance with their areas of12 constitutional and statutory authority and regulations adopted pursuant thereto, shall13 have the right to intervene in such litigation brought under this Section only as14 provided in Paragraph (C)(5) of this Section. If the department does not15 intervene in accordance with the Louisiana Code of Civil Procedure. The litigation,16 nothing Nothing in this Section shall diminish the authority of the department or the17 attorney general to independently bring any civil or administrative enforcement18 action. Nor shall anything in this Section preclude the department from19 independently responding in a timely manner to an inquiry or request by a landowner20 for investigation.21 (3) Any judgment or order in any litigation to which this Section applies shall22 be without prejudice to any independent civil or administrative action by the23 department or the attorney general regarding any environmental damage alleged24 therein. No such judgment or order in such litigation may bar the department or the25 attorney general pursuant to R.S. 13:4231 et seq., or otherwise from pursuing any26 independent civil or administrative action regarding environmental damage as27 alleged therein, regardless of whether provided however, that if the department or28 intervenes in litigation brought under this Section, the feasible plan approved29 SB NO. 528 SLS 12RS-652 ORIGINAL Page 4 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. or issued by the department under this Section shall constitute a binding1 stipulation by the department in any independent civil or regulatory action2 brought by the department or attorney general has intervened.concerning3 environmental damage addressed in the feasible plan.4 (4) No judgment or order shall be rendered granting any relief in such5 litigation to which this Section applies, nor shall the litigation be dismissed, until6 timely notice is received by the state of Louisiana as set forth in this Subsection.7 C.(1) If at any time during the proceeding a party admits liability for8 environmental damage or the finder of fact determines that environmental damage9 exists and determines the party or parties who caused the damage or who are10 otherwise legally responsible therefor, the court shall order the party or parties who11 admit responsibility or whom the court finds legally responsible for the damage to12 develop a plan or submittal for the evaluation or remediation to applicable standards13 of the contamination that resulted in the environmental damage. The court shall order14 that the plan be developed and submitted to the department and the court within a15 time that the court determines is reasonable and shall allow the plaintiff or any other16 party at least thirty days from the date each plan or submittal was made to the17 department and the court to review the plan or submittal and provide to the18 department and the court a plan, comment, or input in response thereto. The19 department shall consider any plan, comment, or response provided timely by any20 party. Within ninety days of being served with a complaint asserting an action21 under this Section, a defendant may request that the court conduct a22 preliminary hearing to determine whether there is good cause for maintaining23 said defendant as a party in the litigation. At the hearing, the parties may24 introduce evidence in affidavit or written form. The plaintiff shall have the25 initial burden to demonstrate the absence of a genuine issue of material fact that26 the moving party caused or is otherwise legally responsible for the alleged27 environmental damage. The rules governing summary judgments in the Code28 of Civil Procedure shall not apply to the preliminary hearing. A judgment of29 SB NO. 528 SLS 12RS-652 ORIGINAL Page 5 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. dismissal under this Subsection shall be without prejudice, with all parties1 reserving the right to rejoin the dismissed defendant during the litigation upon2 discovery of evidence not reasonably available at the time of the hearing on the3 motion for preliminary dismissal. If not rejoined, a party dismissed under this4 Subsection shall be entitled to a judgment of dismissal with prejudice following5 a final judgment on the claims asserted by the party against whom the6 preliminary dismissal was granted. Any pleading rejoining any defendant7 previously dismissed under this Subsection shall relate back to the filing of the8 original petition or any amendment thereto as provided in the Code of Civil9 Procedure Art. 1153. This procedure for a preliminary dismissal shall be in10 addition to the pretrial rights and remedies available to the parties under the11 Code of Civil Procedure, including the right to conduct discovery.12 (2) Within one hundred and eighty days of service of a petition asserting13 an action covered by this Section, a party may admit responsibility for14 remediating to regulatory standards the contamination resulting in15 environmental damage alleged in the petition by providing notice of such16 admission to all parties, the court and the department. Within sixty days of such17 an admission, the party or parties who admit responsibility shall submit to the18 department a plan for the remediation to applicable regulatory standards of the19 contamination that resulted in the environmental damage. In response to the20 submission by the admitting party, the department shall either initiate a21 compliance proceeding under the provisions of R.S. 30:4 or intervene as22 provided in this Paragraph (C)(5) of this Section. The department shall submit to23 the court a schedule of estimated costs for review of the plans or submittals of the24 parties by the department and the court shall require the party admitting25 responsibility or the party found legally responsible by the court to deposit in the26 registry of the court sufficient funds to pay the cost of the department's review of the27 plans or submittals. Any plan or submittal shall include an estimation of cost to28 implement the plan. An admission by a party under the provisions of this29 SB NO. 528 SLS 12RS-652 ORIGINAL Page 6 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Paragraph may be limited to a portion of the property allegedly damage.1 (3)(a) An admission by a party to responsibility for remediating to2 regulatory standards shall be admissible at trial. The court shall instruct the3 jury as to the scope of such admission based on Paragraph (C)(2) of this Section4 and the facts admitted by the admitting party.5 (b) Evidence of remediation of the property following an admission6 under Paragraph (C)(2) of this Section may be offered by the admitting party7 or the plaintiff and shall be admissible only if the admitting party first8 delineates the horizontal and vertical extent of the environmental media9 designated for remediation. If evidence of pre-trial remediation by an admitting10 party is introduced at trial, damages shall be based on the condition of the11 property as of the date of filing the original petition, subject to a credit in favor12 of the admitting party for the actual expenses incurred in performing13 remediation prior to trial pursuant to this Paragraph. Ongoing evaluation or14 remediation of the property shall not delay the scheduling of the trial on the15 merits.16 (4) Following the delay for a party to admit responsibility under17 Paragraph (C)(2), the court shall convene a conference pursuant to the Code of18 Civil Procedure Art. 1551 to establish a scheduling order for the parties to19 submit to the department plans or comments to remediate the alleged20 environmental damage to applicable regulatory standards. A party who has21 admitted responsibility for remediating to regulatory standards may resubmit22 the plan submitted to the department pursuant to Paragraph (C)(2). The23 department shall be provided a copy of the scheduling order and shall submit24 to the court a schedule of estimated costs for review of the submittals by the25 department. Upon request by a party or parties, the court shall schedule a trial26 on the merits.27 (5) Within sixty days from of the last day on which any party may provide28 the department with a plan, comment, or response to a plan as provided in Paragraph29 SB NO. 528 SLS 12RS-652 ORIGINAL Page 7 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. (C)(1) of as provided by the scheduling order pursuant to Paragraph (C)(4), the1 department may intervene in the litigation. If the department elects to2 intervene, within sixty days of such intervention, the department shall submit3 to the court a feasible plan to remediate the environmental damage to4 regulatory standards.5 (6) If the department intervenes, all submittals by the parties to the6 department and the plan issued by the department shall be admissible at trial7 and any party may subpoena, for purposes of deposition or trial, any employee,8 contractor, or representative of the department involved in the formulation of9 the plan issued by the department.10 (7) If the department does not intervene, the parties shall not be11 permitted to conduct discovery or introduce evidence concerning the plans and12 submittals to the department or the department's actions relating to the alleged13 contamination after the date of filing of the original petition including, but not14 limited to, the department's review of the submittals or plans of the parties and15 any administrative enforcement action taken by the department.16 D. For actions tried under this Section, the department shall conduct a17 public hearing on the plan or plans submitted. Within sixty days of the conclusion18 of the hearing, the department shall approve or structure a plan based on the evidence19 submitted trier of fact shall determine whether the plaintiff has proven by a20 preponderance of the evidence the existence of environmental damage, the party21 or parties who caused the damage of who are otherwise legally responsible22 therefor, and the cost of remediation. Separate awards shall be made for the23 cost to evaluate and remediate environmental damage to regulatory standards24 and the additional cost, if any, to remediate environmental damage to a higher25 standard under any applicable laws or contract. In all cases in which the26 department determines to be intervenes and submits a feasible plan, there shall27 be a rebuttable presumption that the plan submitted by the department is the28 most feasible plan to evaluate or remediate the environmental damage and protect29 SB NO. 528 SLS 12RS-652 ORIGINAL Page 8 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. the health, safety, and welfare of the people. The department shall issue written1 reasons for the plan it approves or structures. On motion of the department, for good2 cause shown, the court may grant the department additional time, not to exceed sixty3 days, within which to either conduct the hearing or approve a plan with reasons4 remediate the environmental damage to applicable regulatory standards. For5 cases tried to a jury, if requested by a party, the court shall instruct the jury6 regarding this presumption.7 (3) The department shall use and apply the applicable standards in approving8 or structuring a plan that the department determines to be the most feasible plan to9 evaluate or remediate the environmental damage.10 (4) The plan approved by the department for submission to the court shall not11 be considered to be an adjudication subject to appellate review pursuant to R.S.12 49:964 or R.S. 30:12.13 (5) The court shall adopt the plan approved by the department, unless a party14 proves by a preponderance of the evidence that another plan is a more feasible plan15 to adequately protect the environment and the public health, safety, and welfare. The16 court shall enter a judgment adopting a plan with written reasons assigned. Upon17 adoption of a plan, the court shall order the party or parties admitting responsibility18 or the party or parties found legally responsible by the court to fund the19 implementation of the plan.20 (6)(a) Any judgment adopting a plan of evaluation or remediation pursuant21 to this Section and ordering the party or parties admitting responsibility or the party22 or parties found legally responsible by the court to deposit funds for the23 implementation thereof into the registry of the court pursuant to this Section shall be24 considered a final judgment pursuant to the Code of Civil Procedure Article 2081 et25 seq., for purposes of appeal.26 (b) Any appeal under this Section shall be a de novo review and shall be27 heard with preference and on an expedited basis.28 (c) The appellate court may affirm the trial court's adoption of a plan or may29 SB NO. 528 SLS 12RS-652 ORIGINAL Page 9 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. adopt a feasible plan in conformity with this Section and shall issue written reasons1 for its decision.2 D.(1) Whether or not the department or the attorney general intervenes, and3 except as provided in Subsection H of this Section, all damages or payments in any4 civil action, E. (1) All damages, including interest thereon, awarded for the5 evaluation or remediation of environmental damage funding the feasible plan shall6 be paid exclusively into the registry of the court in an interest-bearing account with7 the interest accruing to the account for clean up., subject to credit for amounts8 actually expended for the evaluation or remediation of the environmental9 damage.10 (2) The court may allow any funds to be paid into the registry of the court11 under this Section to be paid in increments as necessary to fund the evaluation or12 remediation and implementation of any plan or submittal adopted by the court of13 contamination to regulatory standards. In any instance in which the court allows14 the funds to be paid in increments, whether or not an appeal is taken, the court shall15 require the posting of a bond for the implementation of the plan in such amount as16 provided by and in accordance with the procedures set forth for the posting of17 suspensive appeal bonds. Any such bond shall be valid through completion of the18 remediation.19 (3) The court shall issue such orders as may be necessary to ensure that any20 such funds are actually expended in a manner consistent with the adopted plan for21 the evaluation or remediation of the environmental damage for which the award or22 payment is made. If an award for remediation of environmental damage to23 regulatory standards is made by the trier of fact, the court shall allow the24 parties and the department sixty days to submit recommendations for a final25 feasible plan. If the department did not intervene pursuant to Paragraph (C)(5)26 of this Section, its recommendation to the court may be based on the27 submissions by the parties to the department under Subsection C of this Section,28 or the results of environmental testing provided to the department under R.S.29 SB NO. 528 SLS 12RS-652 ORIGINAL Page 10 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. 30:29.1, or any other information within the custody and control of the1 department. Following review of the recommendations by the parties and the2 department, the court shall issue a final feasible plan based on the following3 four factors:4 (1) The evidence introduced at trial;5 (2) The award made by the trier of fact for evaluation and remediation6 to regulatory standards;7 (3) The recommendations of the parties; and8 (4) The recommendations of the department.9 To the extent practicable, the court shall reconcile the cost to implement10 the feasible plan adopted by the court with the award made by the trier of fact11 for evaluation or remediation to regulatory standards. The feasible plan12 adopted by the court shall be incorporated into the final judgment rendered by13 the court. The court shall provide written reasons for its determination of the14 feasible plan, if requested by any party.15 (4) The court shall retain jurisdiction over the funds deposited for16 remediation of environmental damage to regulatory standards and the party or17 parties admitting responsibility or the party or parties found legally responsible by18 the court until such time as the evaluation or and remediation is are completed. If19 the court finds the amount of the initial deposit insufficient to complete the20 evaluation or remediation, the court shall, on the motion of any party or on its own21 motion, order the party or parties admitting responsibility or found legally22 responsible by the court to deposit additional funds into the registry of the court.23 Upon completion of The court shall determine whether the evaluation or24 remediation, the court shall order any funds remaining in the registry of the court to25 be returned to the depositorbased upon the feasible plan adopted by the court has26 been completed. The department and the parties shall notify the court of the27 completion of any evaluation or remediation the evaluation or remediation, and28 the court shall consider any evidence submitted by the department or any party29 SB NO. 528 SLS 12RS-652 ORIGINAL Page 11 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. in determining whether the evaluation or remediation has been completed.1 Following a determination of completion of the evaluation and remediation, any2 money remaining in the registry of the court shall be returned to the depositor.3 EF.(1) In any civil action in which a party is responsible for damages or4 payments for the evaluation or remediation of environmental damage, a party5 providing evidence, in whole or in part, upon which the judgment is based shall be6 entitled to recover from the party or parties admitting responsibility or the party or7 parties found legally responsible by the court, in addition to any other amounts to8 which the party may be entitled, all costs attributable to producing that portion of the9 evidence that directly relates to the establishment of environmental damage,10 including, but not limited to, expert witness fees, environmental evaluation,11 investigation, and testing, the cost of developing a plan of remediation, and12 reasonable attorney fees incurred in the trial court and the department.13 (2) In any civil action in which the department or the attorney general, or14 their employees, are parties or witnesses, provide evidence, or otherwise contribute15 to the determination of responsibility for evaluation or remediation, or the approval16 of a plan of remediation, the department or attorney general shall be entitled to17 recover from the party or parties admitting responsibility or the party or parties found18 legally responsible by the court all costs thereof, including but not limited to19 investigation, evaluation, and review costs; expert witness fees; and reasonable20 attorney fees. In the event no party admits or is found responsible for21 remediation of environmental damage to regulatory standards, the party or22 parties filing the claim shall be responsible for payment of all such costs23 incurred by the department.24 FG. The court and the department shall retain oversight to ensure compliance25 with the plan to remediate the environmental damage to regulatory standards,26 and to ensure the implementation of any feasible plan adopted or structured by27 the court. The party or parties admitting responsibility or the party or parties found28 legally responsible by the court shall file progress reports periodically as the court29 SB NO. 528 SLS 12RS-652 ORIGINAL Page 12 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. or the department may require.1 GH. The provisions of this Section are intended to ensure evaluation or and2 remediation of environmental damage to regulatory standards. If the court finds3 that no environmental damage exists, the court may dismiss the department or4 attorney general from the litigation without prejudice.5 H I. This Section shall not preclude an owner of land from pursuing a judicial6 remedy or receiving a judicial award for private claims suffered as a result of7 environmental damage, except as otherwise provided in this Section. Nor shall it8 preclude a judgment ordering damages for or implementation of additional9 remediation in excess of the requirements of the plan adopted by the court pursuant10 to this Section as may be required by law or in accordance with the terms or11 obligations of an express contractual provision a contract. Any award granted in12 connection with the judgment for additional remediation is not required to be paid13 into the registry of the court. This Section shall not be interpreted to create any cause14 of action or to impose additional implied obligations under the mineral code or15 arising out of a mineral lease.16 i. For the purposes of this Section, the following terms shall have the17 following meanings:18 (1) "Environmental damage" shall mean any actual or potential impact,19 damage, or injury to environmental media caused by contamination resulting from20 activities associated with oilfield sites or exploration and production sites.21 Environmental media shall include but not be limited to soil, surface water, ground22 water, or sediment.23 (2) "Evaluation or remediation" shall include but not be limited to24 investigation, testing, monitoring, containment, prevention, or abatement.25 (3) "Feasible Plan" means the most reasonable plan which addresses26 environmental damage in conformity with the requirements of Louisiana27 Constitution Article IX, Section 1 to protect the environment, public health, safety28 and welfare, and is in compliance with the specific relevant and applicable standards29 SB NO. 528 SLS 12RS-652 ORIGINAL Page 13 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. and regulations promulgated by a state agency agencies in accordance with the1 Administrative Procedure Act in effect at the time of clean up to remediate2 contamination resulting from oilfield or exploration and production operations or3 waste.4 (4) "Oilfield site"or "exploration and production (E&P) site" means any5 location or any portion thereof on which oil or gas exploration, development, or6 production activities have occurred, including wells, equipment, tanks, flow lines or7 impoundments used for the purposes of the drilling, work over, production, primary8 separation, disposal, transportation or storage of E&P wastes, crude oil and natural9 gas processing, transportation or storage of a common production stream of crude10 oil, natural gas, coal seam natural gas, or geothermal energy prior to a custody11 transfer or a sales point. In general, this definition would apply to all exploration and12 production operations located on the same lease, unit or field.13 (5) "Timely notice" means written notice sent by certified mail, return receipt14 requested. Such notice shall include a copy of the petition and any other filing in15 such litigation.16 J.(1) In the event that any settlement is reached in a case subject to the17 provisions of this Section, the settlement shall be subject to approval by the court.18 The department and the attorney general shall be given notice once the parties have19 reached a settlement in principle. The department shall then have no less than thirty20 days to review that settlement and comment to the court before the court certifies the21 settlement. If after a contradictory hearing the court requires remediation, the court22 shall not certify or approve any settlement until an amount of money sufficient to23 fund such remediation is deposited into the registry of the court. No funding of a24 settlement shall occur until the requirements of this Section have been satisfied.25 However, the court shall have the discretion to waive the requirements of this26 Section if the settlement reached is for a minimal amount and is not dispositive of27 the entire litigation.28 (2) In the event a settlement is agreed to between the parties in a case in29 SB NO. 528 SLS 12RS-652 ORIGINAL Page 14 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. which the department or the attorney general has intervened, such agency shall be1 entitled to recover from the settling defendants all costs, including investigation,2 evaluation, and review costs; expert witness fees; and reasonable attorney fees.3 L. The prescriptive periods that apply to claims covered by the4 provisions of this Section shall be suspended for a period of one year upon the5 mailing or physical delivery to the department of a notice of intent to6 investigate. A notice of intent to investigate shall include the following7 information:8 (1) A description of the property alleged to have been damaged;9 (2) A description of the alleged environmental damage;10 (3) The general location on the property of the alleged environmental11 damage;12 (4) The name and address of all known owners of the property; and13 (5) The name and address of the current operator.14 The party issuing the notice of intent to investigate shall serve all persons15 identified therein with a copy of the notice of intent to investigate by certified16 mail, return receipt requested. The inability to obtain a signed returned receipt17 shall not prevent the suspension of prescription as provided in this Subsection.18 This Subsection shall not be construed to impede or limit the authority of the19 department to issue any order or initiate any administrative enforcement action20 relating to the alleged environmental damage identified in the notice of intent21 to investigate. No action for declaratory relief may be filed in any court against22 any party during the suspension of the prescriptive periods under this23 Subsection.24 KM. The provisions of this Section shall not apply to a judicial demand that25 prior to the effective date of this Section has been resolved through compromise26 agreement and settlement of claims, or by judgment on the merits that has become27 final and definitive.28 SB NO. 528 SLS 12RS-652 ORIGINAL Page 15 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by McHenry Lee. DIGEST Present law provides that the Const. of La. mandates that the natural resources of the state are to be protected, conserved and replenished insofar as possible and consistent with the health, safety, and welfare of the people and further mandates that the legislature enact laws to implement this policy. Proposed law provides that is a constitutional duty of the legislature to set forth procedures to ensure that damage to the environment is remediated to a standard that protects the public interest concomitant with the constitutional duty of the courts to adjudicate private claims. Proposed law provides that the intent of the legislature is intended to protect the public interest by ensuring the evaluation or remediation of environmental damage to regulatory standards and that every person who causes environmental damage has an obligation to remediate such damage. Proposed law provides that it is not the intent of the legislature to limit the right of private litigants to assert private claims for remediation damages based on standards imposed by law or private contracts in excess of the requirements of applicable regulations or for remedies other than remediation damages as provided by law or private contracts, nor shall the intention of the legislature be construed to create any cause of action or to impose additional implied obligations under the La. Mineral Code or arising out of a mineral lease. Present law provides that upon filing or amendment of any litigation or pleading making a judicial demand arising from environmental damage, the filing party shall provide timely notice to the state through the Department of Natural Resources, commissioner of conservation, and the attorney general. Proposed law provides that the filing party must make notice to the state within 10 days of the filing or the amendment. Present law provides that the department or the attorney general shall have the right to intervene in such litigation, and further provides that nothing in present law shall diminish the authority of the department or attorney general from pursuing any independent or civil action regarding environmental damage regardless of whether the department or the attorney general has intervened, and provides that nothing in the Section shall preclude the department from independently responding to in a timely manner to an inquiry or request by a landowner for investigation. Proposed law gives the department the exclusive right to intervene in such litigation only as provided under proposed law and removes the provision that precludes the department from independently responding in a timely manner to an inquiry or request by a landowner for investigation. Present law provides that no judgment or order in any litigation shall be without prejudice to any independent civil or administrative action by the department or attorney general regarding any environmental damage and that no such judgment shall bar the department of attorney general from pursuing any independent civil or administrative action, regardless of whether the department or attorney general has intervened. Proposed law retains present law but provides that if the department intervenes in litigation, the plan approved or issued by the department shall constitute a binding stipulation by the department in any independent civil or regulatory action brought by the department or SB NO. 528 SLS 12RS-652 ORIGINAL Page 16 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. attorney general concerning damage addressed in the feasible plan. Present law provides that should a party admit liability for environmental damage or the finder of fact determines that environmental damage exists and determines the party who caused the damage or who is responsible, requires the court to order the party who admits responsibility to develop a plan for the evaluation or remediation of the damage. Further provides that the plan shall be submitted to the department and court within a time that the court determines is reasonable and allow the plaintiff at least 30 days from the date each plan or submittal was made to the department. Proposed law removes present law but provides that within 90 days of being served a complaint, a defendant may request that the court conduct a preliminary hearing to determine whether there is a good cause for maintaining the defendant as a party in the litigation, and allows parties to introduce evidence. Provides that the plaintiff shall have the initial burden to introduce evidence to support allegations of environmental damage, following which the moving party shall have the burden to demonstrate the absence of an issue of material fact that the moving party is responsible for the damage. Provides that the rules governing summary judgments in the Code of Civil Procedure shall not apply to the preliminary hearing, and further provides that all parties reserving the right to rejoin the dismissed defendant during the litigation upon discovery of evidence not reasonably available at the time of the hearing on the motion for preliminary dismissal. Provides that if not rejoined, a party dismissed shall be entitled to a judgment of dismissal with prejudice following a final judgment on the claims asserted by the party against whom the preliminary dismissal was granted. Proposed law requires that within 180 days of service of a petition a party may admit responsibility for remediating to regulatory standards the contamination or damage alleged in the petition by providing notice of such admissions to all parties, the court and the department. Within 60 days of such an admission, the party who admits responsibility shall submit to the department a plan for the remediation to applicable regulatory standards of the contamination that resulted in the damage, and in response to the admitting party, the department shall either initiate a compliance proceeding or intervene. Present law requires the court to submit a schedule of estimated costs for review of the plans or submittals of the parties by the department 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 of the plans or submittals, which shall include an estimation of cost to implement the plan. Proposed law provides that an admission by a party may be limited to a portion of the property allegedly damaged. Proposed law provides that an admission by a party to responsibility for remediating to regulatory standards shall be admissible at trial. Proposed law provides that evidence of remediation may be offered by the admitting party or the plaintiff and shall be admissible only if the admitting party first delineates the horizontal and vertical extent of the environmental media designated for remediation and further provides that if evidence of pre-trial remediation by the admitting party is introduced at trial, damages shall be based on the condition of the property as of the date of filing the original petition, subject to a credit in favor of the admitting party for the actual expenses incurred in performing remediation prior to trial. Further provides that ongoing evaluation or remediation of the property shall not delay the scheduling of the trial on the merits. Proposed law provides that following the delay for a party to admit responsibility, the court shall convene a conference to establish a scheduling order for the parties to submit to the department plans or comments to remediate the alleged damage to regulatory standards, and that any party who has admitted responsibility for remediating regulatory standards may SB NO. 528 SLS 12RS-652 ORIGINAL Page 17 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. resubmit the plan submitted to the department. Requires the department to provide a copy of the scheduling order and submit to the court a schedule of estimated costs for review of the submittals, and further requires the court to reschedule a trial on the merits. Proposed law provides that if the department intervenes, all submittals by the parties to the department and the plan issued by the department shall be admissible and trial and any party may subpoena for purposes of deposition any employee, contractor, or representative of the department involved in the formation of the plan. Proposed law provides that if the department does not intervene, the parties shall not be permitted to conduct discovery or introduce evidence concerning the plans and submittals to the department's actions relating to the alleged damage after the date of filing of the original petition, including but not limited to the department's review of the submittals or plans of the parties and any administrative enforcement action taken by the department. Present law requires the department to conduct a public hearing on the plan submitted and that within 60 days of the conclusion of the hearing, the department shall approve or structure a plan based on the evidence, and further provides that the court may provide the department no more than 60 days additional time to either conduct a hearing or approve a plan. Proposed law changes present law to provide that the trier of fact shall determine whether the plaintiff has proven the existence of environmental damage, the party responsible, and the cost of remediation. Provides that separate awards shall be made for the cost to evaluate and remediate damage to regulatory standards and the additional costs, if any, to remediate environmental damage to a higher standard under any applicable laws or contracts. Present law provides that the department shall use and apply applicable standards in approving and structuring a plan, that the approved plan shall not be considered an adjudication subject to appellate law, and that the court shall adopt the plan unless a party proves that an alternative plan is more feasible. Proposed law removes present law. Present law provides that any judgment adopting a plan and ordering the party admitting responsibility or found legally responsible by the court to deposit funds for the implementation into the registry of the court. Proposed law removes present law. Present law provides that an appellate court may affirm the trial court's adoption of the plan or may adopt a feasible plan. Proposed law removes present law. Present law provides that all damages awarded for remediation shall be paid into the registry of the court in an interest-bearing account with the interest accruing to the account for clean- up. Proposed law changes present law to specify that interest accrued shall be subject to credit for amounts actually expended for the evaluation or remediation of the damage. Present law provides that the court shall issue orders as may be necessary to ensure that any such funds are actually expended in a manner consistent with the adopted plan for the evaluation or remediation of the environmental damage for which the award or payment is made. Proposed law removes present law. SB NO. 528 SLS 12RS-652 ORIGINAL Page 18 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Proposed law provides that if an award for environmental damage to regulatory standards is made by trier of fact, the court shall allow the parties and the department 60 days to submit recommendations for a final feasible plan and the court shall issue a feasible plan based on four factors: (1) the evidence introduced at trial; (2) the award made by the trier of fact for evaluation and remediation to regulatory standards; (3) the recommendations of the parties; and (4) the recommendations of the department. Further provides that the court shall reconcile the cost to implement the feasible plan adopted by the court with the award made by the trier of fact for evaluation or remediation to regulatory standards, and the plan adopted by the court shall incorporate a final judgment rendered by the court. Present law provides that the court shall retain jurisdiction over the funds and the responsible party until the remediation is complete. Further provides that if the court finds the amount of the initial deposit insufficient to complete the evaluation or remediation, the court shall order the responsible party to deposit additional funds into the registry of the court. Further provides that upon completion of the remediation, the court shall order any remaining funds returned to the depositor. Proposed law provides that the court shall determine whether the remediation has been completed, and provides that the court shall consider any evidence submitted by the department or any party in determining whether the evaluation or remediation has been completed. Present law provides that in any civil action in which a party deemed responsible for damages or payments, the party providing evidence upon which the judgment is based shall be entitled to recover from the parties admitting responsibility or found legally responsible by the court, in addition to any other amounts to which the party may be entitled, all costs attributable to producing that portion of the evidence that directly relates to the establishment of environmental damage. Present law provides that the department or attorney general may recover costs associated with determining responsibility from the parties admitting responsibility or found legally responsible. Proposed law provides that in the event no party admits or is found responsible for the damage, the parties filing the claim shall be responsible for payment of all such costs. Present law provides that the court and the department shall retain oversight to ensure compliance with the plan and that the responsible parties shall file progress reports on the remediation. Present law provides that provisions of present law are intended to ensure evaluation and remediation of environmental damage, and that if no such damage exists, the court may dismiss the department or attorney general from the litigation. Present law provides that current landowners are not precluded from pursuing a judicial remedy or receiving a judicial award for private claims suffered as a result of environmental damage, nor does present law preclude a judgment ordering damages for or implementation of additional remediation in excess of the requirement of the plan adopted by the court. Further provides that any award granted in connection with the judgment for additional remediation is not required to be paid into the registry of the court. Present law provides that nothing in present law shall be interpreted to create any cause of action or to impose additional implied obligations under the Mineral Code or arising out of a mineral lease. Proposed law removes present law. Present law provides for certain definitions. SB NO. 528 SLS 12RS-652 ORIGINAL Page 19 of 19 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Proposed law provides that the prescriptive periods that apply to claims covered by proposed law shall be suspended for one year upon the mailing or physical deliver to the department of a notice of intent to investigate and that such notice shall include the following: (1) a description of the property alleged to have been damaged; (2) a description of the alleged environmental damage; (3) the general location on the property of the alleged environmental damage; (4) the name and address of all known owners of the property; and (5) the name and address of the current operator. Proposed law provides that the party serving the notice of intent to investigate shall serve all persons identified in the notice and that an inability to obtain a signed returned receipt shall not prevent the suspension of prescription. Proposed law provides that nothing in proposed law shall be construed to impede or limit the authority of the department to issue any order or initiate any administrative enforcement action relating to the alleged environmental damage identified in the notice. Effective August 1, 2012. (Amends R.S. 30:29)