HLS 15RS-858 REENGROSSED
2015 Regular Session
HOUSE BILL NO. 784
BY REPRESENTATIVE DOVE
CONSERVATION/OFFICE: Provides for certain fees collected by the office of
conservation
1 AN ACT
2To amend and reenact R.S. 30:21(B)(1) and 136.1(D) and to enact R.S. 30:4(P), relative to
3 fees collected by the commissioner of conservation; to provide for fees for activities
4 regulated by the office of conservation; to provide for application, compliance, and
5 fees; to authorize the commissioner of conservation to develop and implement an
6 expedited permitting processing program; to provide for notice of an expedited
7 permit; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 30:21(B)(1) and 136.1(D) are hereby amended and reenacted and
10R.S. 30:4(P) is hereby enacted to read as follows:
11 §4. Jurisdiction, duties, and powers of the assistant secretary; rules and regulations
12 * * *
13 P. The commissioner is authorized to develop and implement a program to
14 expedite the processing of permits, modifications, licenses, registrations, or variances
15 for permit applicants who may request such services. In addition to the fees charged
16 pursuant to this Subtitle, a fee for an expedited permit shall be charged to each
17 applicant equal to the cost of every overtime hour, or portion thereof, an employee
18 or contractor works processing the expedited permit and an amount not exceeding
19 twenty percent for administrative costs. The overtime rate shall not exceed the
20 maximum per hour overtime salary, calculated at one and one half times the hourly
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HB NO. 784
1 wage and including associated related benefits, of a civil service employee of the
2 office of conservation. The commissioner shall adopt rules and regulations in
3 accordance with the Administrative Procedure Act to implement the provisions of
4 this Subsection. Such rules shall require a public notice be given when an expedited
5 permit is requested.
6 * * *
7 §21. Fees and charges of the commissioner of conservation; revisions; exceptions;
8 collections; Oil and Gas Regulatory Fund; creation; amounts; requirements
9 * * *
10 B.(1)(a) There shall be an annual fee payable to the office of conservation,
11 in a form and schedule prescribed by the office of conservation, by oil and gas
12 operators on capable oil wells and capable gas wells based on a tiered system to
13 establish parity on a dollar amount between the wells. The tiered system shall be
14 established annually by rule on capable oil and capable gas production, including
15 nonexempt wells reporting zero production during the annual base period, such that
16 the amount generated does not exceed two three million four six hundred fifty
17 seventy-five thousand dollars for each fiscal year beginning with Fiscal Year 2002-
18 2003 2015-2016. Incapable oil, stripper oil, incapable gas well gas, and incapable
19 oil well gas shall be exempt from the fee. For the purposes of this Subsection,
20 "capable oil" means crude oil and condensate not classified as incapable oil or
21 stripper oil by the Department of Revenue. "Capable gas" means natural and casing
22 head gas not classified as incapable gas well gas or incapable oil well gas by the
23 Department of Revenue.
24 (b) There shall be an annual fee payable to the office of conservation, in a
25 form and schedule prescribed by the office of conservation, on Class I wells in an
26 amount not to exceed four hundred thousand one million dollars for Fiscal Year
27 2000-2001 2015-2016 and thereafter.
28 (c) There shall be an annual regulatory fee payable to the office of
29 conservation, in a form and schedule prescribed by the office of conservation, on
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HB NO. 784
1 Class II wells, Class III wells, storage wells, Type A facilities, and Type B facilities
2 in an amount not to exceed eight two million one hundred seventy-five eighty-seven
3 thousand five hundred dollars for Fiscal Year 2000-2001 2015-2016 and thereafter.
4 No fee shall be imposed on a Class II well of an operator who is also an operator of
5 a stripper crude oil well or incapable gas well certified pursuant to R.S. 47:633 by
6 the severance tax division of the Department of Revenue and located in the same
7 field as such Class II well.
8 (d) There shall be an application fee payable to the office of conservation,
9 in a form and schedule prescribed by the office of conservation, by industries under
10 the jurisdiction of the office of conservation. The commissioner may, in accordance
11 with the Administrative Procedure Act, increase any application In addition to any
12 other fee that is on the schedule on July 1, 2002 2015, to an amount not in excess of
13 eight and one-half percent above the amount charged for the fee on July 1, 2002. the
14 commissioner may collect the following fees:
15 (i) Application for alternate unit well, exception $504
16 to 29-E, exception to 29-B, severance tax relief,
17 downhole combinations, well product
18 reclassification, selective completion, pilot
19 projects, waiver of production test, or critical
20 date order
21 (ii) Application for work permit - minerals$75
22 (iii) Application to amend permit to drill - minerals$50
23 (lease unit well, stripper, incapable, other)
24 (iv) Operator registration $105
25 (v) Annual compliance review fee - class III $2,000
26 solution mining cavern
27 (vi) Annual compliance review fee - class II $2,000
28 hydrocarbon storage and exploration and
29 production waste cavern
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HB NO. 784
1 (vii) Class II carbon dioxide enhanced $5,000
2 recovery project
3 (viii) Community saltwater disposal system initial$125
4 notification
5 (ix) Application for work permit - injection or other$125
6 (x) Work permit to plug and abandon a well utilized $500
7 for naturally occurring radioactive waste disposal
8 (xi) Requests to modify well permit $300
9 (xii) Class V permit waiver or exemption request $250
10 (xiii) Witnessed verification of mechanical $250
11 integrity tests
12 (xiv) Transfer stations regulatory fee for exploration$2,500
13 and production waste
14 (xv) Request to transport exploration and $150
15 production waste to commercial facilities
16 or transfer stations
17 (xvi) Authorization for after-hours disposal $150
18 of exploration and production waste
19 (xvii) Exploration and production waste $300
20 determination
21 (xviii) Commercial facility transfer station application$1,500
22 (xix) Commercial facility application exclusive $3,000
23 of an associated well
24 (xx) Commercial facility annual closure plan and$300
25 cost estimate review
26 (xxi) Commercial facility reuse material applications$300
27 (xxii) Reuse material applications not associated with$400
28 a commercial facility
29 * * *
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HB NO. 784
1 §136.1. Proceeds from mineral royalties, leases, and bonuses; payment into the
2 Bond Security and Redemption Fund; payment into the Louisiana Investment
3 Fund for Enhancement (L.I.F.E.)
4 * * *
5 D. After deposit to the Bond Security and Redemption Fund as required
6 under the provisions of Article VII, Section 9(B) of the Constitution of Louisiana,
7 an additional fifteen dollars per acre shall be collected from the mineral lessees and
8 deposited into the Louisiana Wildlife and Fisheries Conservation Fund, and an
9 additional five fifteen dollars per acre shall be collected from the mineral lessees and
10 deposited into the Oil and Gas Regulatory Fund created by R.S. 30:21. The funds
11 deposited under the provisions of this Subsection shall be used to supplement funds
12 available to the recipient agencies and shall not be used to supplant other funds
13 available to those recipient agencies.
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)]
HB 784 Reengrossed 2015 Regular Session Dove
Abstract: Increases existing fees and fee caps and creates new fees collected by the office
of conservation and creates an expedited permit process.
Present law authorizes the office of conservation in the Dept. of Natural Resources to collect
annual fees from operators of capable oil and gas wells based on a tiered system and on
injection wells and facilities.
Proposed law increases the caps on these annual fees beginning Fiscal Year 2015-2016 as
follows:
Present Fee Proposed Fee
Capable oil and gas wells$2,450,000 $3,675,000
Class I wells $ 400,000 $1,000,000
Class II, III, and storage $ 875,000 $2,187,500
wells and type A and B
facilities
Present law requires from the revenue collected from mineral leases on state-owned land,
$15 per acre be deposited into the La. Wildlife Conservation Fund and $5 into the Oil and
Gas Regulatory Fund.
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HB NO. 784
Proposed law changes present law by increasing the amount deposited into the Oil and Gas
Regulatory Fund from $5 to $15.
Present law authorizes the office of conservation to collect application fees in a form and
schedule prescribed by the office and authorizes the increase of those fees, through the
Administrative Procedure Act, not to exceed 8½% of the fees charged on July 1, 2002.
Proposed law changes present law by authorizing, in addition to the fees charged on July 1,
2015, collecting the following fees:
Application for alternate unit well, exception $504
to 29-E, exception to 29-B, severance tax relief,
downhole combinations, well product
reclassification, selective completion, pilot
projects, waiver of production test, or critical
date order
Application for work permit - minerals $75
Application to amend permit to drill - minerals $50
(lease unit well, stripper, incapable, other)
Operator registration $105
Annual compliance review fee - class III $2,000
solution mining cavern
Annual compliance review fee - class II $2,000
hydrocarbon storage and exploration and
production waste cavern
Class III carbon dioxide enhanced $5,000
recovery project
Community saltwater disposal system initial $125
notification
Application for work permit - injection or other $125
Work permit to plug & abandon a well utilized $500
for naturally occurring radioactive waste disposal
Requests to modify well permit $300
Class V permit waiver or exemption request $250
Witnessed verification of mechanical $ 250
integrity tests
Transfer stations regulatory fee for exploration $2,500
and production waste
Request to transport exploration and production $150
waste to commercial facilities or transfer stations
Authorization for after-hours disposal $150
of exploration and production waste
Exploration and production waste $300
determination
Commercial facility transfer station application $1,500
Commercial facility application exclusive $3,000
of an associated well
Commercial facility annual closure plan and $300
cost estimate review
Commercial facility reuse material applications $300
Reuse material applications not associated with $400
a commercial facility
Proposed law authorizes the commissioner of conservation to develop and implement a
program to expedite the processing of permits, modifications, licenses, registrations, and
variances. Requires that the notice for an expedited permit indicate that the permit is being
expedited.
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HB NO. 784
Proposed law establishes the fee for expediting the permit as the cost of the overtime hours
that employees of the office of conservation or a contractor spends processing the
application and an amount not to exceed 20% for administrative costs. The overtime rate
shall not exceed the maximum per hour salary, including benefits, of a civil service
employee of the office of conservation.
Proposed law requires the commissioner to adopt rules and regulations in accordance with
the APA to implement proposed law.
Proposed law provides the rules shall require a public notice be given when an expedited
permit is requested.
(Amends R.S. 30:21(B)(1) and 136.1(D); Adds R.S. 30:4(P))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Natural Resources
and Environment to the original bill:
1. Change the caps for capable oil and gas wells from $6,125,000 to
$3,675,000.
2. Remove fee increases for pipeline safety inspections and for pipelines
facilities transporting hazardous liquids.
3. Add authority to the commissioner to develop and implement an expedited
permit program.
4. Add a fee for expedited permits based on the cost of the overtime hours of
an employee or a contractor spends processing the permit along with an
administration fee of up to 20%.
5. Require a public notice be given when an expedited permit is requested.
The House Floor Amendments to the engrossed bill:
1. Limit the overtime rate that forms the basis of the expedited permit fee as the
maximum overtime rate of a civil service employee of the office of conservation.
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