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 Engrossed 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.
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.
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. Caps the fee at a 120% per hour cost at the
maximum per hour salary, including benefits, of a civil service employee of the office.
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.