Louisiana 2015 2015 Regular Session

Louisiana House Bill HB784 Comm Sub / Analysis

                    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 Original	2015 Regular Session	Dove
Abstract:  Increases existing fees and fee caps and creates new fees collected by the office of
conservation.
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 $6,125,000
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.
Proposed law changes present law by increasing the amount deposited into the Oil and Gas
Regulatory Fund from $5 to $15.
Present law levies fees for safety inspections on transporters of gas by pipeline and a fee on
transporters of hazardous liquids by pipeline in an amount not to exceed $22.40 per mile or $400 per
pipeline facility, whichever is greater.
Proposed law increases the fee on both types of pipelines from the greater of $22.40 per mile or $400
per pipeline facility to the greater of $39.20 or $800 per pipeline facility.
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 charges 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 andproduction $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 (Amends R.S. 30:21(B)(1), 136.1(D), 560(B), and 706)