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Regular Session, 2014 ENROLLED
SENATE BILL NO. 462
BY SENATOR ADLEY
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, LAC 43:XIX.1901 through17
1909, wells drilled in search of oil to depths below three thousand feet subsea18
shall not be located closer than three hundred thirty feet from any property line19
nor closer than nine hundred feet from any other well completed in, drilling to,20
or for which a permit shall have been granted to drill to, the same pool. In21
addition, Statewide Order No. 29-E provides wells drilled in search of gas shall22
not be located closer than three hundred thirty feet to the property line nor23
closer than two thousand feet to any other well completed in, drilling to, or for24
which a permit shall have been granted to drill to, the same pool.25
(3) The Legislature of Louisiana has become aware of the practice of26
granting exceptions to the above rules and allowing oil and gas operators to drill27
ACT No. 394 SB NO. 462 ENROLLED
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within the three hundred thirty feet property line and into the adjacent1
property. R.S. 31:16 provides that mineral rights are real rights and subject to2
either a prescription of nonuse for ten years or to special rules of law governing3
the term of their existence. One practical implication of allowing an exception4
to the three hundred thirty foot boundary rule is that the drilling of cross-unit5
wells could prevent the prescription of nonuse from running on the adjacent6
property. Officials of the Louisiana Oil and Gas Association and the Louisiana7
Mid-Continent Oil and Gas Association recognize that this practice impacts the8
rights of adjoining landowners in regards to the prescription of nonuse.9
(4) The Cross-Unit Well Study Commission shall consist of members10
comprised as follows:11
(a) The commissioner of conservation, who shall serve as the chairman.12
(b) The director of the Louisiana Mineral Law Institute.13
(c) Three people appointed by the Louisiana Oil and Gas Association.14
Two of the three people shall be attorneys who are licensed to practice law in15
Louisiana.16
(d) Three people appointed by the Louisiana Mid-Continent Oil and Gas17
Association. Two of the three people shall be attorneys who are licensed to18
practice law in Louisiana.19
(e) Two people appointed by the director of the Louisiana Mineral Law20
Institute. Each person shall be an attorney who is licensed to practice law in21
Louisiana and has at least fifteen years of legal experience in the oil and gas22
industry.23
(f) One person appointed by the Louisiana Chapter of the National24
Association of Royalty Owners.25
(5) The chairman shall hold the first public meeting of the commission26
on or before September 1, 2014, at the headquarters of the Department of27
Natural Resources, office of conservation. After the first meeting, the28
commission shall hold monthly public meetings at the headquarters of the29
Department of Natural Resources, office of conservation.30 SB NO. 462 ENROLLED
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(6) The chairman shall report the commission's findings and1
recommendations to the Senate Committee on Natural Resources and the House2
Committee on Natural Resources and Environment not later than March 16,3
2015.4
(7) The members shall serve without compensation except per diem or5
expense reimbursement to which they may be individually entitled as members6
of their respective organizations.7
(8) The commission shall be subject to the open meetings and public8
records laws.9
(9) The provisions of this Subsection shall be void on August 1, 2015,10
and thereafter.11
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: