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Regular Session, 2013 ENROLLED
SENATE BILL NO. 139
BY SENATOR WARD AND REPRESENTATI VES ARMES, ARNOL D, BADON,
BERTHELOT, BROSSETT, BROWN, COX, GISCLAIR, HARRISON,
JONES, KLECKLEY, LEOPOLD, MONTOUCET, MORENO,
ORTEGO, RICHARD, SCHEXNAYDER, ST. GERMAIN AND
THIBAUT
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
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
violation that is not voluntarily paid by the violator, and a penalty of not more18
than thirty-two thousand five hundred dollars for each day of violation.19
However, such person may be liable for an additional penalty of not more than20
one million dollars when any such violation is done intentionally, willfully, or21
knowingly and either results in a discharge or disposal that causes irreparable22 SB NO. 139 ENROLLED
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or severe damage to the environment or involves the discharge of a substance1
which endangers human life or health.2
(ii) If the penalty assessed by the commissioner is upheld in full or in3
part, the commissioner shall be entitled to legal interest as provided in R.S.4
9:3500 from the date of imposition of the penalty until paid.5
(iii) Any person found to be in violation of any provision of this Chapter6
related to the drilling or use of underground caverns for hydrocarbon storage7
or solution mining, or any requirement, rule, regulation, or order related8
thereto, may be subject to the revocation or suspension of any permit, license,9
or variance that has been issued to the person related to the drilling or use of10
such underground caverns for hydrocarbon storage or solution mining.11
(b) Any person to whom a compliance order or a cease and desist order12
is issued pursuant to this Chapter who fails to take corrective action within the13
time specified in said order shall be liable for a civil penalty to be assessed by14
the commissioner or the court of not more than fifty thousand dollars for each15
day of continued violation or noncompliance.16
(c)(i) In determining whether or not a civil penalty is to be assessed and17
in determining the amount of the penalty or the amount agreed upon in18
compromise, the following factors shall be considered:19
(aa) The history of previous violations or repeated noncompliance.20
(bb) The nature and gravity of the violation.21
(cc) The degree of culpability, recalcitrance, defiance, or indifference to22
regulations or orders.23
(dd) The monetary benefits realized through noncompliance.24
(ee) The degree of risk to human health or property caused by the25
violation.26
(ff) Whether the noncompliance or violation and the surrounding27
circumstances were immediately reported to the commissioner and whether the28
violation or noncompliance was concealed or if there was an attempt to conceal29
by the person charged.30 SB NO. 139 ENROLLED
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(gg) Whether the person charged has failed to mitigate or to make a1
reasonable attempt to mitigate the damages caused by his noncompliance or2
violation.3
(hh) The costs of bringing and prosecuting an enforcement action, such4
as staff time, equipment use, hearing records, and expert assistance.5
(ii) The commissioner may supplement such criteria by rule. In the6
event that the order with which the person failed to comply was an emergency7
cease and desist order, no penalty shall be assessed if it appears upon later8
hearing that said order was issued without reasonable cause.9
(iii) The commissioner by rule may establish classifications or levels of10
violations and the appropriate enforcement response.11
(d) After submission for a penalty determination at a hearing, the12
commissioner shall provide an opportunity for relevant and material public13
comment relative to any penalty that may be imposed.14
(e) If the penalty assessed by the commissioner is upheld in full or in15
part, the commissioner shall be entitled to legal interest as provided in R.S.16
9:3500 from the date of imposition of the penalty until paid. If any penalty17
assessed by the commissioner under the provisions of this Paragraph is vacated18
or reduced as the result of an appeal of the assessment, the court shall award to19
the respondent legal interest as provided in R.S. 9:3500 on the amount required20
to be refunded by the commissioner.21
* * *22
§148.9. Oil; natural gas; liquid hydrocarbons; carbon dioxide; lease for23
underground storage24
* * *25
B. Any lease granted hereunder shall be subject to the provisions of R.S.26
30:18, 22, and 23, Statewide Order No. 29-M (LAC 43:XVII.Chapter 3), and27
Statewide Order No. 29-N-1 (LAC 43:XVII.Chapter 1), as applicable.28
Section 2. This Act shall become effective upon signature by the governor or, if not29
signed by the governor, upon expiration of the time for bills to become law without signature30 SB NO. 139 ENROLLED
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by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If1
vetoed by the governor and subsequently approved by the legislature, this Act shall become2
effective on the day following such approval.3
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: