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Regular Session, 2013
SENATE BILL NO. 200
BY SENATOR MILLS
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
SALT DOMES. Prohibits the issuance of certain permits to construct or operate salt dome
caverns until certain conditions are met. (8/1/13)
AN ACT1
To enact R.S. 30:23.1, relative to minerals, oil and gas; to provide for a ban on new permits2
allowing certain types of activities near salt domes; to expand the requirements for3
new or existing permits to conduct such operations in or near salt domes; to provide4
for authority to promulgate such requirements; to require a performance bond to5
conduct such activities; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 30:23.1 is hereby enacted to read as follows:8
ยง23.1. Permits for underground storage of hazardous wastes, natural gas,9
liquid hydrocarbons, carbon dioxide and Class III brine10
extraction from or near salt domes; drilling; ban on permits;11
regulations12
A. The legislature finds that Louisiana contains a significant number of13
underground salt dome formations and these formations have been subject to14
catastrophic influences caused by certain activities, permitted by the state and15
conducted in close proximity to salt domes and adjacent formations. The16
legislature further finds that the Bayou Corne sinkhole that developed in17 SB NO. 200
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August 2012, in Assumption Parish is an unprecedented environmental disaster1
and the causes of that disaster must be addressed by the state in order to2
prevent similar, man-made events, in the future. Months after the event,3
residents forced to evacuate because of the sinkhole are still waiting for4
assistance and resolution of the problem and the day when they may return5
home. Experts have reported that the collapsing cavern shifted and weakened6
underground rock formations, causing earthquakes and allowing natural gas7
and oil to migrate upward and contaminate the local groundwater aquifer.8
Another similar disaster occurred in 1980 when an oil rig drilling in Lake9
Peigneur, Louisiana, miscalculated and drilled into an underground salt dome.10
Water from the lake entered the salt dome, dissolving large amounts of salt and11
causing a large and growing sinkhole that would suck down two drilling rigs,12
eleven barges and a tugboat. As a result, the ecosystem was radically altered by13
massive increases of salt in the lake. The legislature finds that in order to14
protect human life, property and the state's fragile ecology, the permitting15
process for such activities must be reformed and upgraded.16
B. A ban on new permits allowing underground storage of hazardous17
wastes, natural gas, liquid hydrocarbons, carbon dioxide and Class III brine18
extraction and drilling through or into such underground storage reservoirs19
near salt domes or adjacent caverns shall take effect on August 1, 2013, and20
remain in effect until the secretary of the Department of Natural Resources21
shall promulgate, subject to legislative oversight, new guidelines and22
requirements for the issuance of such permits. The ban shall allow the23
secretary and the industry sufficient time to review the current rules and24
regulations, examine the issues and promulgate new rules and regulations in25
accordance with the Administrative Procedure Act. These guidelines and26
requirements shall provide for implementation of a more stringent and27
upgraded permitting process and shall be presented in a report to the House28
Committee on Natural Resources and Environment and the Senate Committee29 SB NO. 200
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on Natural Resources and the Senate Committee on Environmental Quality for1
legislative oversight pursuant to R.S. 49:968.2
C. When the Department of Natural Resources has promulgated and3
instituted an amended, upgraded and more stringent permitting process, as4
provided for in this Section, and the ban on the issuance of permits has been5
lifted, no new permits shall be issued without a permitee providing a6
performance bond, the amount of which shall be determined by the secretary7
of the Department of Natural Resources.8
D. No new permits for underground storage of hazardous wastes,9
natural gas, liquid hydrocarbons, Class III brine extraction in or near moderate10
or catastrophic disasters such as sinkholes and collapses in salt dome caverns11
or the drilling into or through such underground storage reservoirs shall be12
granted until the provisions of this Section have been complied with. The ban13
provided for by this Section shall remain in effect until the amended and14
upgraded permitting process is promulgated by the secretary of the Department15
of Natural Resources and that process has been subjected to the oversight of the16
legislative committees as provided for by this Section and pursuant to R.S.17
49:968.18
E. In the event of moderate or catastrophic disaster circumstances,19
including but not limited to sinkholes, erosion of cavern walls or geological20
unrest, the ban provided for in this Section shall continue in effect until the21
department can determine whether such operations can be safely conducted.22
F. Underground storage permits for hazardous wastes, natural gas,23
liquid hydrocarbons, carbon dioxide, Class III brine extraction, and the drilling24
into or through such underground caverns near salt domes and surrounding25
areas issued prior to the effective date of this Section shall be subject to the26
provisions of this Section and shall require the approval of the Department of27
Natural Resources before such operations may continue.28 SB NO. 200
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Heyward Jeffers.
DIGEST
Present law provides for the permitting requirements for the underground storage of
hazardous wastes, natural gas, liquid hydrocarbons, carbon dioxide, and Class III brine
extractions.
Present law provides that underground storage of hazardous wastes, natural gas, liquid
hydrocarbons, carbon dioxide and Class III brine extractions shall be in the public interest
and for a public purpose, and that such storage shall be determined by the commissioner to
be suitable and feasible, and not contaminate other formations containing fresh water, oil,
gas, or other commercial mineral deposits.
Present law requires public hearings on the issuance of permits for the underground storage
of hazardous wastes, natural gas, liquid hydrocarbons, carbon dioxide, and Class III brine
extraction.
Present law provides that the commissioner shall issue such orders, rules, and regulations
as may be necessary for the purpose of protecting any such underground storage reservoir,
strata, or formations against pollution or against the escape of hazardous wastes, natural gas,
liquid hydrocarbons, carbon dioxide, or Class III brine extractions therefrom, including such
necessary rules and regulations as may pertain to the drilling into or through such
underground storage reservoir.
Proposed law retains present law and provides for a ban on all underground storage of
hazardous wastes, liquid hydrocarbons, natural gas, carbon dioxide, Class III brine
extractions and drilling into or through such underground storage reservoirs, caverns and salt
domes near moderate and catastrophic disasters such as sinkholes and collapses in salt dome
caverns.
Proposed law provides that such a ban on permits for underground activities near salt domes,
underground caverns or sink holes where moderate or catastrophic disasters have occurred
shall continue until the secretary of the Department of Natural Resources and industry have
sufficient time to review the current rules and regulations, examine the issues and
promulgate new and more stringent rules and regulations in accordance with the APA in
order to determine if such operations may be safely resumed.
Proposed law provides that permits for underground storage of hazardous wastes, liquid
hydrocarbons, natural gas, carbon dioxide, Class III brine extractions and drilling into or
through such underground storage reservoirs and caverns issued prior to the effective date
of proposed law shall require the approval of the secretary of the Department of Natural
Resources before such operations may continue.
Proposed law provides that bans on issuance of such permits shall further continue until the
amended and upgraded permitting process is promulgated by the secretary of the Department
of Natural Resources and that process has been subjected to the oversight of the House
Committee on Natural Resources and Environment and the Senate Committee on Natural
Resources and the Senate Committee on Environmental Quality as provided for pursuant to
R.S. 49:968.
Proposed law provides that no new permits shall be issued without a permitee providing a
performance bond, the amount of which shall be determined by the secretary of the
Department of Natural Resources. SB NO. 200
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Effective August 1, 2013.
(Adds R.S. 30:23.1)