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Regular Session, 2014
HOUSE BILL NO. 933
BY REPRESENTATIVE MONTOUCET
ENERGY/PIPELINES: Creates the "Louisiana Liquid Natural Gas Pipeline Law"
AN ACT1
To enact Chapter 10 of Title 30 of the Louisiana Revised Statutes of 1950, to be comprised2
of R.S. 30:1001 through 1006, relative to natural gas liquids pipelines and pipeline3
facilities; to provide for definitions; to provide for the duties and powers of the4
commissioner of conservation; to provide for expropriation; to provide for public5
hearings; to provide for certificates of public convenience and necessity; to provide6
for enforcement; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. Chapter 10 of Title 30 of the Louisiana Revised Statutes of 1950,9
comprised of R.S. 30:1001 through 1006, is hereby enacted to read as follows:10
CHAPTER 10. NATURAL GAS LIQUIDS PIPELINE LAW11
§1001. Short title12
This Part shall be known and may be cited as the "Louisiana Natural Gas13
Liquids Pipeline Law".14
§1002. Definitions15
As used in this Part, the following words and phrases have the meanings16
hereinafter ascribed to them:17
(1) "Assistant secretary" means the assistant secretary of the office of18
conservation of the Department of Natural Resources.19 HLS 14RS-628 ORIGINAL
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(2) "Intrastate pipeline facility" means pipeline facilities situated wholly1
within the boundaries of this state and which are used in the transportation of natural2
gas liquids in intrastate commerce.3
(3) "Person" means any individual, firm, joint venture, partnership,4
corporation, association, any political subdivision of this state, municipality,5
cooperative association, or joint stock association, and includes any trustee, receiver,6
assignee, or personal representative thereof.7
(4) "Pipeline facility" means and shall include, without limitation, new and8
existing pipe, right of way, and any equipment, facility, or building used or intended9
for use in the transportation of natural gas liquids; but, rights of way as used in this10
Chapter do not authorize the assistant secretary to prescribe the location or the11
routing of any pipeline facility.12
(6) "Transportation of natural gas liquids" means the movement of natural13
gas liquids by pipeline, or their storage incidental to such movement; however, it14
shall not include any such movement through gathering lines in rural locations,15
onshore production, refining, or manufacturing facilities, or storage or in-plant16
piping systems associated with any of such facilities.17
§1003. Duties and powers of the commissioner; rule and regulations; permits18
A. The office of conservation's actions pursuant to this Chapter shall be19
directed and controlled by the commissioner. The commissioner shall have authority20
to:21
(1) Regulate the construction, design, and operation of pipelines transmitting22
natural gas liquids and associated facilities.23
(2) Issue certificates of public convenience and necessity for pipelines24
transmitting natural gas liquids and associated facilities.25
(3) Declare pipelines transmitting natural gas liquids and associated facilities26
as common carriers.27
(4) Enter into an agency relationship with the United States Department of28
Transportation to enforce compliance with safety standards with respect to interstate29 HLS 14RS-628 ORIGINAL
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pipeline facilities or the transportation of natural gas liquids associated with those1
facilities.2
(5) To make, after notice and hearings as provided in this Chapter, any3
reasonable rules, regulations, and orders that are necessary from time to time in the4
proper administration and enforcement of this Chapter, including rules, regulations,5
or orders for the following purposes:6
(a) To establish minimum safety standards for pipeline facilities and the7
transportation of natural gas liquids.8
(b) To prevent the intrusion of natural gas liquids into oil, gas, salt9
formation, or other commercial mineral strata.10
(c) To prevent the pollution of fresh water supplies by oil, gas, salt water, or11
natural gas liquids.12
(d) To require the closure of pipelines and associated surface facilities, the13
removal of equipment, structures, and trash, and to otherwise require a general site14
cleanup of such abandoned pipelines.15
(6)(a) To make such inquiries as he deems proper to determine whether or16
not waste, over which he has jurisdiction, exists or is imminent.17
(b) In the exercise of this power, the commissioner has the following18
authority:19
(i) To collect data.20
(ii) To make investigations and inspections.21
(iii) To examine properties, papers, books, and records.22
(iv) To examine, survey, check, test, and gauge pipelines and associated23
facilities.24
(v) To hold hearings.25
(vi) To provide for the keeping of records and the making of reports.26
(vii) To require the submission of an emergency phone number by which the27
operator may be contacted in case of an emergency.28 HLS 14RS-628 ORIGINAL
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(viii) To take any action as reasonably appears to him to be necessary to1
enforce this Chapter.2
B.(1) Prior to the use of any pipeline to transport natural gas liquids and prior3
to the exercise of eminent domain by any person, firm, or corporation having such4
right pursuant to the laws of the state of Louisiana, and as a condition precedent to5
such use or to the exercise of such rights of eminent domain, the commissioner, after6
public hearing pursuant to the provisions of R.S. 30:6, held in at least one parish7
where the pipeline is to be located, shall have found all of the following:8
(a) That the pipeline sought to be used for the transportation of natural gas9
liquids is suitable and feasible for such use.10
(b) That the use of the pipeline transporting natural gas liquids will not11
contaminate formations containing fresh water, oil, gas, or other commercial mineral12
deposits.13
(c) That the proposed pipeline will not endanger human lives or cause a14
hazardous condition to property.15
(2) If the proposed pipeline is partly located in another state or jurisdiction,16
the commissioner shall confirm that the applicable regulatory authority of that state17
or jurisdiction has approved or authorized the transportation of natural gas liquids18
in association with such project.19
C. The eminent domain authority authorized by this Chapter shall be20
exercised pursuant to the procedures found in R.S. 19:2, and shall be in addition to21
any other power of eminent domain authorized by law.22
D. The commissioner is neither a necessary nor indispensable party to an23
eminent domain proceeding, and if named as a party or third party has an absolute24
right to be dismissed from said action at the expense of the party who names the25
commissioner. The commissioner shall recover all costs reasonably incurred to be26
dismissed from the action, including attorney fees.27
§1004. Hearings; notice; rules of procedures; emergency; service of process; public28
records; request for hearings; orders and compliance orders29 HLS 14RS-628 ORIGINAL
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A. All public hearings under this Chapter shall be conducted pursuant to the1
provisions of R.S. 30:6.2
B. All rules, regulations, and orders made by the commissioner pursuant to3
this Chapter shall be made pursuant to the Administrative Procedure Act and shall4
be entered in full by him in a book kept for that purpose. This book shall be a public5
record and shall be open for inspection at all times during reasonable office hours6
and shall be available on the website of the Department of Natural Resources. A7
copy of a rule, regulation, or order, certified by the commissioner, shall be received8
in evidence in all courts of this state with the same effect as the original.9
C. Any interested person has the right to have the commissioner call a10
hearing for the purpose of taking action in respect to a matter within the jurisdiction11
of the commissioner as provided in this Chapter by making a request therefor in12
writing and paying the hearing fee set by the commissioner, as provided by law for13
a hearing conducted pursuant to R.S. 30:6. Upon receiving the request and payment14
of the required fees the commissioner shall promptly call a hearing. After the15
hearing and with all convenient speed and within thirty days after the conclusion of16
the hearing, the commissioner shall take whatever action he deems appropriate with17
regard to the subject matter.18
§1005. Certificates of public convenience and necessity; certificate of completion19
of injection operations20
The commissioner shall issue a certificate of public convenience and21
necessity to each person applying therefor if, after a public hearing pursuant to the22
provisions of R.S. 30.6, held in at least one parish where the pipeline transporting23
natural gas liquids is to be located, he determines the following:24
(1) That the proposed pipeline and associated facilities are required by the25
present or future public convenience and necessity.26
(2) That the proposed pipeline meets the requirements of R.S. 30:1003(B).27
(3) That the proposed pipeline meets the requirements of any rules adopted28
pursuant to this Chapter.29 HLS 14RS-628 ORIGINAL
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§1006. Administration and enforcement1
Except as otherwise provided in this Part, the provisions of R.S. 30:6, 30:8,2
30:13, 30:15, and 30:21 shall apply to the administration and enforcement of this3
Chapter.4
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Montoucet HB No. 933
Abstract: Creates the "Louisiana Natural Gas Liquids Pipeline Law".
Proposed law provides definitions for "assistant secretary", intrastate pipeline facility",
"person", "pipeline facility", and "transportation of natural gas liquids".
Proposed law authorizes the commissioner of conservation to regulate the construction,
design and operation of; issue certificates of public convenience and necessity for; and
declare the status of as a common carrier of pipelines transmitting natural gas liquids and
associated facilities.
Proposed law authorizes the commissioner to enter into agreements with the U.S. Dept. of
Transportation to enforce compliance with safety standards.
Proposed law authorizes the commissioner to make any reasonable rules, regulations, and
orders that are necessary for the administration and enforcement of proposed law.
Proposed law provides such rules, regulations, and orders may include minimum safety
standards, the prevention of the intrusion of natural gas liquids into other formations, the
prevention of the pollution of fresh water supplies, and to require the proper closure of
pipelines and associated surface facilities.
Proposed law authorizes the commissioner to make inquires, collect data, investigate,
inspect, examine, hold hearings, require the keeping of records and submission of emergency
contact information, and take any action as reasonably necessary to enforce proposed law.
Proposed law requires that prior to the use of any pipeline to transport natural gas liquids and
prior to the exercise of eminent domain, the commissioner, after public hearing, held in at
least one parish where the pipeline is to be located, shall have found all of the following:
(1)That the pipeline sought to be used for the transportation of natural gas liquids is
suitable and feasible for such use.
(2)That the use of the pipeline will not contaminate formations containing fresh water,
oil, gas, or other commercial mineral deposits.
(3)That the proposed pipeline will not endanger human lives or cause a hazardous
condition to property.
Proposed law provides that if the proposed pipeline is partly located in another state or
jurisdiction, the commissioner shall confirm that the applicable regulatory authority of that HLS 14RS-628 ORIGINAL
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state or jurisdiction has approved or authorized the transportation of natural gas liquids in
association with such project.
Proposed law provides that the eminent domain authority authorized by proposed law shall
be exercised pursuant to the procedures found in present law, and shall be in addition to any
other power of eminent domain authorized by law.
Proposed law provides that the commissioner is neither a necessary nor indispensable party
to an eminent domain proceeding, and if named as a party or third party has an absolute right
to be dismissed from said action at the expense of the party who names the commissioner.
Provides that the commissioner shall recover all costs reasonably incurred, including
attorney fees.
Proposed law provides for the procedure for making rules, regulations, and orders and for
interested persons in requesting hearings pursuant to present law.
Proposed law requires the commissioner to issue a certificate of public convenience and
necessity after application and a public hearing, held in at least one parish where the pipeline
transporting natural gas liquids is to be located, and determines that the proposed pipeline
and associated facilities are required by the present or future public convenience and
necessity, meets the requirements of proposed law, and any rules adopted pursuant to
proposed law.
Proposed law provides for the administration and enforcement of proposed law.
(Adds R.S. 30:1001-1006)