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Regular Session, 2014
SENATE BILL NO. 462
BY SENATOR ADLEY
CONSERVATION. Creates the Cross-Unit Well Study Commission. (8/1/14)
AN ACT1
To enact R.S. 30:4(N), relative to the jurisdiction, duties, and powers of the assistant2
secretary of the Department of Natural Resources; to provide for the study of certain3
drilling permits; to study the issue of drilling wells within three hundred thirty feet4
of the property boundary of a drilling unit or lease; to establish the Cross-Unit Well5
Study Commission; to provide for its membership, powers and duties; and to provide6
for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 30:4(N) is hereby enacted to read as follows:9
ยง4. Jurisdiction, duties, and powers of the assistant secretary; rules and regulations10
* * *11
N.(1) The Cross-Unit Well Study Commission is hereby created within12
the Department of Natural Resources, office of conservation. The commission13
shall study the legal implications of the prescription of nonuse in relation to the14
drilling of any well located closer than three hundred thirty feet from the15
property boundary of a drilling unit or lease.16
(2) According to Statewide Order No. 29-E, wells drilled in search of oil17 SB NO. 462
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to depths below three thousand feet subsea shall not be located closer than three1
hundred thirty feet from any property line nor closer than nine hundred feet2
from any other well completed in, drilling to, or for which a permit shall have3
been granted to drill to, the same pool. In addition, Statewide Order No. 29-E4
provides wells drilled in search of gas shall not be located closer then three5
hundred thirty feet to the property line nor closer than two thousand feet to any6
other well completed in, drilling to, or for which a permit shall have been7
granted to drill to, the same pool.8
(3) The Legislature of Louisiana has become aware of the practice of9
granting exceptions to the above rules and allowing oil and gas operators to drill10
within the three hundred thirty feet property line and into the adjacent11
property. R.S. 31:16 provides that mineral rights are real rights and subject to12
either a prescription of nonuse for ten years or to special rules of law governing13
the term of their existence. One practical implication of allowing an exception14
to the three hundred thirty foot boundary rule is that the drilling of cross-unit15
wells could prevent the prescription of nonuse from running on the adjacent16
property. Officials at the Louisiana Oil and Gas Association and the Louisiana17
Mid-Continent Oil and Gas Association recognize that this practice impacts the18
rights of adjoining landowners in regards to the prescription of nonuse.19
(4) The Cross-Unit Well Study Commission shall consist of members20
comprised as follows:21
(a) The commissioner of conservation, who shall serve as the chairman.22
(b) The director of the Louisiana Mineral Law Institute.23
(c) Three people appointed by the Louisiana Oil and Gas Association.24
Two of the three people shall be attorneys who are licensed to practice law in25
Louisiana.26
(d) Three people appointed by the Louisiana Mid-Continent Oil and Gas27
Association. Two of the three people shall be attorneys who are licensed to28
practice law in Louisiana.29 SB NO. 462
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(e) Two people appointed by the director of the Louisiana Mineral Law1
Institute. Each person shall be an attorney who is licensed to practice law in2
Louisiana and have at least fifteen years of legal experience in the oil and gas3
industry.4
(f) One person appointed by the Louisiana Chapter of the National5
Association of Royalty Owners.6
(5) The chairman shall hold the first public meeting of the commission7
on or before September 1, 2014, at the headquarters of the Department of8
Natural Resources, office of conservation. After the first meeting, the9
commission shall hold monthly public meetings at the headquarters of the10
Department of Natural Resources, office of conservation.11
(6) The chairman shall report the commission's findings and12
recommendations to the Senate Committee on Natural Resources and the House13
Committee on Natural Resources and Environment not later than March 16,14
2015.15
(7) The members shall serve without compensation except per diem or16
expense reimbursement to which they may be individually entitled as members17
of the organizations.18
(8) The commission shall be subject to the open meetings and public19
records laws.20
(9) The provisions of this Section shall be void on August 1, 2015.21
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by McHenry Lee.
DIGEST
Adley (SB 462)
Proposed law creates the Cross-Unit Well Study Commission within DNR, office of
conservation and requires the commission to study the legal implication of the prescription
of nonuse in relation to the drilling of any well located closer than 330 feet from the property
boundary of a drilling unit or lease.
Proposed law provides for the membership, powers and duties of the commission.
Proposed law provides that the provisions of proposed law will expire on August 1, 2015. SB NO. 462
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Effective August 1, 2014.
(Adds R.S. 30:4(N))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Natural Resources to
the original bill
1. Creates the Cross-Unit Well Study Commission within DNR.