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Regular Session, 2013
SENATE BILL NO. 139
BY SENATOR WARD AND REPRESENTATI VE ST. GERMAIN
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
CONSERVATION. Provides relative to fines levied by the commissioner of conservation
for certain violations. (2/3 - CA7s2.1(A)) (gov sig)
AN ACT1
To amend and reenact R.S. 30:148.9(B) and to enact R.S. 30:18(A)(6), relative to2
underground caverns for hydrocarbon storage or solution mining; to provide for3
penalties for violations of laws, regulations, or orders relative to drilling or use of4
such underground caverns; to provide factors for determining penalties; and to5
provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 30:148.9(B) is hereby amended and reenacted and R.S. 30:18(A)(6)8
is hereby enacted to read as follows:9
§18. Penalties for violation of Chapter; venue10
A.(1) * * *11
(6)(a)(i) Notwithstanding any provision of this Section to the contrary,12
any person found to be in violation of any provision of this Chapter related to13
the drilling or use of underground caverns for hydrocarbon storage or solution14
mining, or any requirement, rule, regulation, or order related thereto, may be15
liable for a civil penalty, to be assessed by the commissioner or the court, of not16
more than the cost to the state of any response action made necessary by such17 SB NO. 139
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violation which is not voluntarily paid by the violator, and a penalty of not more1
than thirty-two thousand five hundred dollars for each day of violation.2
However, such person may be liable for an additional penalty of not more than3
one million dollars when any such violation is done intentionally, willfully, or4
knowingly; and either results in a discharge or disposal which causes5
irreparable or severe damage to the environment, or involves the discharge of6
a substance which endangers human life or health.7
(ii) If the penalty assessed by the commissioner is upheld in full or in8
part, the commissioner shall be entitled to legal interest as provided in R.S.9
9:3500 from the date of imposition of the penalty until paid.10
(iii) Any person found to be in violation of any provision of this Chapter11
related to the drilling or use of underground caverns for hydrocarbon storage12
or solution mining, or any requirement, rule, regulation, or order related13
thereto, may be subject to the revocation or suspension of any permit, license,14
or variance which has been issued to the person related to the drilling or use of15
such underground caverns for hydrocarbon storage or solution mining.16
(b) Any person to whom a compliance order or a cease and desist order17
is issued pursuant to this Chapter who fails to take corrective action within the18
time specified in said order shall be liable for a civil penalty to be assessed by19
the commissioner or the court of not more than fifty thousand dollars for each20
day of continued violation or noncompliance.21
(c)(i) In determining whether or not a civil penalty is to be assessed and22
in determining the amount of the penalty or the amount agreed upon in23
compromise, the following factors shall be considered:24
(aa) The history of previous violations or repeated noncompliance.25
(bb) The nature and gravity of the violation.26
(cc) The gross revenues generated by the respondent.27
(dd) The degree of culpability, recalcitrance, defiance, or indifference28
to regulations or orders.29 SB NO. 139
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(ee) The monetary benefits realized through noncompliance.1
(ff) The degree of risk to human health or property caused by the2
violation.3
(gg) Whether the noncompliance or violation and the surrounding4
circumstances were immediately reported to the commissioner and whether the5
violation or noncompliance was concealed or if there was an attempt to conceal6
by the person charged.7
(hh) Whether the person charged has failed to mitigate or to make a8
reasonable attempt to mitigate the damages caused by his noncompliance or9
violation.10
(ii) The costs of bringing and prosecuting an enforcement action, such11
as staff time, equipment use, hearing records, and expert assistance.12
(ii) The commissioner may supplement such criteria by rule. In the13
event that the order with which the person failed to comply was an emergency14
cease and desist order, no penalty shall be assessed if it appears upon later15
hearing that said order was issued without reasonable cause.16
(iii) The commissioner by rule may establish classifications or levels of17
violations and the appropriate enforcement response.18
(d) After submission for a penalty determination at a hearing, the19
commissioner shall provide an opportunity for relevant and material public20
comment relative to any penalty which may be imposed.21
(e) If the penalty assessed by the commissioner is upheld in full or in22
part, the commissioner shall be entitled to legal interest as provided in R.S.23
9:3500 from the date of imposition of the penalty until paid. If any penalty24
assessed by the commissioner under the provisions of this Paragraph is vacated25
or reduced as the result of an appeal of the assessment, the court shall award to26
the respondent legal interest as provided in R.S. 9:3500 on the amount required27
to be refunded by the commissioner.28
* * *29 SB NO. 139
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§148.9. Oil; natural gas; liquid hydrocarbons; carbon dioxide; lease for1
underground storage2
* * *3
B. Any lease granted hereunder shall be subject to the provisions of R.S.4
30:18, 22, and 23, Statewide Order No. 29-M (LAC 43:XVII.Chapter 3), and5
Statewide Order No. 29-N-1 (LAC 43:XVII.Chapter 1), as applicable.6
Section 2. This Act shall become effective upon signature by the governor or, if not7
signed by the governor, upon expiration of the time for bills to become law without signature8
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If9
vetoed by the governor and subsequently approved by the legislature, this Act shall become10
effective on the day following such approval.11
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by McHenry Lee.
DIGEST
Ward (SB 139)
Present law provides for penalties for any person who violates a rule, regulation, or order of
the commissioner of conservation.
Proposed law retains present law and provides that any person found to be in violation of any
requirement, rule, regulation, or order related to the drilling or use of underground caverns
issued by the commissioner may be liable for a civil penalty, to be assessed by the
commissioner or the court, of not more than the cost to the state of any response action made
necessary by the violation and a penalty of not more than $32,500 per day of the violation.
Further provides that if the violation is done intentionally, willfully, or knowingly, and
results in either a discharge or disposal which causes severe damage to the environment, or
a discharge or disposal which endangers human life or death, the person may be liable for
an additional penalty of not more than $1 million.
Proposed law provides that any person found to be in violation of any rule, regulation, or
order related to the drilling or use of underground caverns may be subject to revocation or
suspension of any permit, license, or variance which has been issued.
Proposed law provides that any person who has been issued a compliance order or a cease
and desist order and who fails to take corrective action within the time specified will be
liable for a civil penalty to be assessed by the commissioner or the court of no more than
$50,000 per day of the violation.
Proposed law provides criteria for assessing the amount of the penalty.
Proposed law requires the commissioner to provide an opportunity for relevant and material
public comment relative to any penalty which may be imposed at a penalty determination
hearing.
Proposed law provides that if the penalty assessed by the commissioner is upheld in full or SB NO. 139
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words in boldface type and underscored are additions.
part, the commissioner will be entitled to legal interest. Further provides that if the penalty
is vacated or reduced as a result of an appeal of the assessment, the court will award to the
respondent legal interest.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 30:148.9(B); adds R.S. 30:18(A)(6))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Natural Resources to
the original bill
1. Changes criteria for the $1 million penalty.
2. Requires that permit revocation be related to a certain cavern.