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Regular Session, 2014 ENROLLED
SENATE BILL NO. 667
BY SENATORS ADLEY AND JOHNS
AN ACT1
To amend and reenact R.S. 30:29(B)(6), (H), and (I) and Code of Civil Procedure Art.2
1563(A)(2) and to enact R.S. 30:29(C)(2)(c) and (M), relative to the remediation of3
oilfield sites and exploration and production sites; to provide for presumption and4
jury charge following a limited admission of liability; to provide for reasonable5
attorney fees and costs following a preliminary dismissal; to provide for certain6
remediation damages; to provide terms, conditions, and requirements; and to provide7
for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 30:29(B)(6), (H), and (I) are hereby amended and reenacted and R.S.10
30:29(C)(2)(c) and (M) are hereby enacted to read as follows:11
ยง29. Remediation of oilfield sites and exploration and production sites12
* * *13
B. * * *14
(6) Within sixty days of being served with a petition or amended petition15
asserting an action, a defendant may request that the court conduct a preliminary16
hearing to determine whether there is good cause for maintaining the defendant as17
a party in the litigation. At the hearing, the parties may introduce evidence in18
affidavit or written form. The plaintiff shall have the initial burden to introduce19
evidence to support the allegations of environmental damage, following which the20
moving party shall have the burden to demonstrate the absence of a genuine issue of21
material fact that the moving party caused or is otherwise legally responsible for the22
alleged environmental damage. The rules governing summary judgments in the Code23
of Civil Procedure shall not apply to the preliminary hearing. Within fifteen days of24
the preliminary hearing, the court shall issue an order on any timely request for25
preliminary dismissal. A judgment of dismissal under this Paragraph shall be without26
prejudice, with all parties reserving the right to rejoin the dismissed defendant during27
ACT No. 400 SB NO. 667 ENROLLED
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the litigation upon discovery of evidence not reasonably available at the time of the1
hearing on the motion for preliminary dismissal. If not rejoined, a party dismissed2
under this Paragraph shall be entitled to a judgment of dismissal with prejudice3
following a final nonappealable judgment on the claims asserted by the party against4
whom the preliminary dismissal was granted and shall be entitled to recover from5
the party who asserted the claim an award of reasonable attorney fees and costs,6
as may be determined by the court. Any pleading rejoining any defendant7
previously dismissed under this Paragraph shall relate back to the filing of the8
original petition or any amendment thereto as provided in the Code of Civil9
Procedure Article 1153. The finding of the district court shall be without prejudice10
of any party to litigate the legal responsibility of any potentially responsible party,11
the allocation of responsibility among the potentially responsible parties, and any12
other issues incident to the finder of fact's determination of the party or parties who13
caused the damage or who are otherwise legally responsible for the alleged14
environmental damage. The procedure for a preliminary dismissal provided by this15
Paragraph shall be in addition to the pretrial rights and the remedies available to the16
parties under the Code of Civil Procedure, including the right to civil discovery.17
* * *18
C. * * *19
(2) * * *20
(c) In all cases in which a party makes a limited admission of liability21
under the provisions of the Code of Civil Procedure Art. 1563, there shall be a22
rebuttable presumption that the plan approved or structured by the23
department, after consultation with the Department of Environmental Quality24
as appropriate, shall be the most feasible plan to evaluate or remediate to25
applicable regulatory standards the environmental damage for which26
responsibility is admitted. For cases tried by a jury, the court shall instruct the27
jury regarding this presumption if so requested by a party.28
* * *29
H.(1) This Section shall not preclude an owner of land from pursuing a30 SB NO. 667 ENROLLED
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judicial remedy or receiving a judicial award for private claims suffered as a result1
of environmental damage, except as otherwise provided in this Section. Nor shall it2
preclude a judgment ordering damages for or implementation of additional3
remediation in excess of the requirements of the plan adopted by the court pursuant4
to this Section as may be required in accordance with the terms of an express5
contractual provision. Any award granted in connection with the judgment for6
additional remediation in excess of the requirements of the feasible plan adopted7
by the court is not required to be paid into the registry of the court. 8
(2) Damages that may be awarded in an action under this Section shall9
be governed by the provisions of Subsection M of this Section. This Section shall10
not be interpreted to create any cause of action or to impose additional implied11
obligations under the mineral code or arising out of a mineral lease.12
I. For the purposes of this Section, the following terms shall have the13
following meanings:14
(1) "Contamination" shall mean the introduction or presence of15
substances or contaminants into a usable groundwater aquifer, an underground16
source of drinking water (USDW) or soil in such quantities as to render them17
unsuitable for their reasonably intended purposes.18
(2) "Environmental damage" shall mean any actual or potential impact,19
damage, or injury to environmental media caused by contamination resulting from20
activities associated with oilfield sites or exploration and production sites.21
Environmental media shall include but not be limited to soil, surface water, ground22
water, or sediment.23
(2)(3) "Evaluation or remediation" shall include but not be limited to24
investigation, testing, monitoring, containment, prevention, or abatement.25
(3)(4) "Feasible Plan" means the most reasonable plan which addresses26
environmental damage in conformity with the requirements of Louisiana27
Constitution Article IX, Section 1 to protect the environment, public health, safety28
and welfare, and is in compliance with the specific relevant and applicable standards29
and regulations promulgated by a state agency in accordance with the Administrative30 SB NO. 667 ENROLLED
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Procedure Act in effect at the time of clean up to remediate contamination resulting1
from oilfield or exploration and production operations or waste.2
(4)(5) "Oilfield site"or "exploration and production (E&P) site" means any3
location or any portion thereof on which oil or gas exploration, development, or4
production activities have occurred, including wells, equipment, tanks, flow lines or5
impoundments used for the purposes of the drilling, workover, production, primary6
separation, disposal, transportation or storage of E&P wastes, crude oil and natural7
gas processing, transportation or storage of a common production stream of crude8
oil, natural gas, coal seam natural gas, or geothermal energy prior to a custody9
transfer or a sales point. In general, this definition would apply to all exploration and10
production operations located on the same lease, unit or field.11
(5)(6) "Timely notice" means written notice sent by certified mail, return12
receipt requested. Such notice shall include a copy of the petition and any other filing13
in such litigation.14
* * *15
M. In an action governed by the provisions of this Section, damages may16
be awarded only for the following:17
(1) The cost of funding the feasible plan adopted by the court.18
(2) The cost of additional remediation only if required by an express19
contractual provision providing for remediation to original condition or to some20
other specific remediation standard.21
(3) The cost of evaluating, correcting or repairing environmental damage22
upon a showing that such damage was caused by unreasonable or excessive23
operations based on rules, regulations, lease terms and implied lease obligations24
arising by operation of law, or standards applicable at the time of the activity25
complained of, provided that such damage is not duplicative of damages26
awarded under Paragraphs (1) or (2) of this Subsection.27
(4) The cost of nonremediation damages.28
The provisions of this Subsection shall not be construed to alter the29
traditional burden of proof or to imply the existence or extent of damages in any30 SB NO. 667 ENROLLED
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action, nor shall it affect an award of reasonable attorney fees or costs under1
this Section.2
Section 2. Code of Civil Procedure Art. 1563(A)(2) is hereby amended and3
reenacted to read as follows:4
Art. 1563. Limited admission of liability in environmental damage lawsuits; effect5
A. * * *6
(2) Upon the expiration of the delay in which a party may file a limited7
admission under Paragraph (A)(5) of this Article Subparagraph (5) of this8
Paragraph, and if one or more of the defendants have made a timely limited9
admission, the court shall refer the matter to the Department of Natural Resources,10
office of conservation, hereinafter referred to as the "department", to conduct a11
public hearing to approve or structure a plan which the department determines to be12
the most feasible plan to evaluate or remediate the environmental damage under the13
applicable regulatory standards pursuant to the provisions of R.S. 30:29. There shall14
be a rebuttable presumption that the plan approved or structured by the15
department, after consultation with the Department of Environmental Quality16
as appropriate, shall be the most feasible plan to evaluate or remediate the17
environmental damage under the applicable regulatory standards pursuant to18
the provisions of R.S. 30:29. For cases tried by a jury, the court shall instruct19
the jury regarding this presumption if requested by a party.20
* * *21
Section 3. The provisions of this Act shall not apply to any case in which the court,22
on or before May 15, 2014, has issued or signed an order setting the case for trial, regardless23
of whether such trial setting is continued.24
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: