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Regular Session, 2014
SENATE BILL NO. 423
BY SENATOR ALLAIN
MINERALS. Provides relative to alternative dispute resolution in suits involving oilfield
sites and exploration and production sites. (8/1/14)
AN ACT1
To enact R.S. 30:29.2, relative to alternative dispute resolution of remediation of oilfield2
sites and exploration and production sites; to require mediation of certain claims3
involving oilfield sites and exploration and production sites; to allow for the4
arbitration of certain claims involving oilfield sites and exploration and production5
sites; to provide for the selection of the mediator and arbitrators; to provide for stay6
of certain time delays; to provide relative to resolution of issues and claims; to7
provide for application; to provide certain procedures, terms, conditions, and effects;8
and to provide for related matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 30:29.2 is hereby enacted to read as follows:11
ยง29.2. Alternative dispute resolution; remediation of oilfield sites and12
exploration and production sites13
A. To facilitate an expedited remediation for environmental damage and14
to assist the parties in the settlement of disputed claims, all litigation or pleading15
making a judicial demand arising from or alleging environmental damage that16
is subject to the provisions of R.S. 30:29 shall be referred to mediation pursuant17 SB NO. 423
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to the provisions of this Section.1
B. Upon the filing or amendment of any litigation or pleading making2
a judicial demand arising from or alleging environmental damage that is3
subject to the provisions of R.S. 30:29, the party filing same shall provide timely4
notice to the state of Louisiana through the Department of Natural Resources,5
commissioner of conservation and the attorney general as required by R.S.6
30:29. In addition, the party filing same shall file a notice of mediation and the7
time delays set forth in R.S. 30:29 shall be stayed for one year upon the filing of8
the notice of mediation or shall be stayed until either party files a notice of9
completion of mediation, whichever occurs first.10
C. The mediation shall be administered by the American Arbitration11
Association and shall be resolved in accordance with the Federal Arbitration12
Act, Title 9 of the United States Code, and, except as is otherwise specified in13
this Subsection, the Commercial Arbitration Rules of the American Arbitration14
Association. The mediator shall be chosen by the parties from a list of three15
nominees submitted by the executive director of the Louisiana Mineral Law16
Institute. Mediation shall consist of a minimum of three meetings whereby the17
mediator seeks to facilitate a consensus decision by all parties concerning the18
issues. The mediation shall take place in the parish where the alleged19
environmental damage occurred.20
D. The sole issues to be decided in any such mediation are the following:21
(1) The affected area of the oilfield site or exploration and production22
(E&P) site as defined in R.S. 30:29.23
(2) The three environmental consultants who will evaluate the affected24
area.25
(3) The plan that addresses environmental damage in conformity with26
the requirements of Louisiana Constitution Article IX, Section 1 to protect the27
environment, public health, safety and welfare, and is in compliance with the28
specific relevant and applicable standards and regulations promulgated by a29 SB NO. 423
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state agency in accordance with the Administrative Procedure Act in effect at1
the time of clean up to remediate contamination resulting from oilfield or2
exploration and production operations or waste.3
(4) The three arbitrators for the oilfield site and exploration and4
production site review panel, including which arbitrator shall act as the chief5
arbitrator. Arbitrators for the panel shall be selected from the membership of6
the American Arbitration Association.7
E.(1) If the parties cannot agree upon either of the issues, then a party8
may file a notice of completion of mediation. Upon the filing of the notice of9
completion of mediation, the time delays set forth in R.S. 30:29 shall apply.10
(2) If the parties can agree upon the issues and a plan is developed, then11
the parties shall file a notice of arbitration.12
(3) Results of the mediation, any plan developed, any testing performed,13
and any settlement offers tendered during the mediation shall be treated as14
settlement negotiations for the purposes of admissibility in a court of law.15
F. The arbitration shall be administered by the American Arbitration16
Association and shall be resolved in accordance with the Federal Arbitration17
Act, Title 9 of the United States Code, and, except as is otherwise specified in18
this Subsection, the Commercial Arbitration Rules of the American Arbitration19
Association.20
G. The sole issue to be decided in any arbitration is the private claims21
suffered as a result of environmental damage.22
H.(1) After his selection, the chief arbitrator shall provide a written23
request to all the parties for the submission of a detailed statement of fact or law24
in support of their positions and such other documents as the parties deem25
necessary, which are to be provided to each member of the panel and to the26
other party within thirty days of the date of the request.27
(2) The chief arbitrator shall then designate a time and place for a28
hearing, unless a hearing is specifically waived in writing by both parties. The29 SB NO. 423
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hearing shall take place in the parish where the alleged environmental damage1
occurred.2
(3) After due consideration of the statements and documents provided3
to the panel, and any additional submissions required by the panel, and4
argument and evidence submitted at the hearing, the panel shall issue a written5
decision.6
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by J. W. Wiley.
DIGEST
Allain (SB 423)
Present law provides a procedure and time delays for the litigation of judicial demands
arising from or alleging environmental damage.
Proposed law provides that all litigation making a judicial demand arising from or alleging
environmental damage must be referred to mediation pursuant to the provisions of proposed
law.
Proposed law provides that the party filing the litigation or pleading must provide timely
notice to the state of Louisiana through the DNR, commissioner of conservation and the
attorney general. Further requires the party to file a notice of mediation and the time delays
set forth in present law must be stayed for one year upon the filing of the notice of mediation
or stayed until either party files a notice of completion of mediation, whichever occurs first.
Proposed law requires the mediation and arbitration to be administered by the American
Arbitration Association and resolved in accordance with the Federal Arbitration Act, Title
9 of the United States Code, and, except as is otherwise specified in proposed law , the
Commercial Arbitration Rules of the American Arbitration Association.
Proposed law requires the mediator to be chosen by the parties from a list of three nominees
submitted by the executive director of the Louisiana Mineral Law Institute. Further requires
the mediation to consist of a minimum of three meetings in the parish where the alleged
environmental damage occurred.
Proposed law provides for the sole issues to be decided in the mediation.
Proposed law provides that if the parties cannot agree upon either of the issues, then a party
may file a notice of completion of mediation and upon such filing the time delays in present
law shall apply.
Proposed law provides that if the parties can agree upon the issues and a plan is developed,
then the parties will file a notice of arbitration.
Proposed law provides that the results of the mediation, any plan developed, any testing
performed, and any settlement offers tendered during the mediation will be treated as
settlement negotiations for the purposes of admissibility in a court of law.
Proposed law provides that the sole issue to be decided in any arbitration is the private
claims suffered as a result of environmental damage. SB NO. 423
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words in boldface type and underscored are additions.
Proposed law requires the chief arbitrator to provide a written request to all the parties for
the submission of a detailed statement of fact or law in support of their positions and such
other documents as the parties deem necessary, which are to be provided to each member
of the panel and to the other party within 30 days of the date of the request.
Proposed law requires the chief arbitrator to designate a time and place for a hearing, unless
a hearing is specifically waived in writing by both parties and requires the hearing to take
place in the parish where the alleged environmental damage occurred.
Proposed law provides that after due consideration of the statements and documents
provided to the panel, and any additional submissions required by the panel, and argument
and evidence submitted at the hearing, the panel will issue a written decision.
Effective August 1, 2014.
(Adds R.S. 30:29.2)