The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by J. W. Wiley.
DIGEST
SB 41 Engrossed 2015 Regular Session Allain
Present law authorizes the establishment of a site-specific trust account for an oilfield site that is
transferred from one party to another party.
Proposed law requires the establishment of a site-specific trust account for an oilfield site that is
transferred from the operator of record to another operator.
Present law provides for the procedure of declaring an oilfield site as orphaned. Requires that prior
to declaring a site orphaned, the assistant secretary of DNR must notify the last operator of record.
Proposed law requires the asst. secretary of DNR to notify all operators.
Proposed law provides that if the current operator of record fails to respond or fails to close and
restore an oilfield site when ordered by the asst. secretary, then the asst. secretary must order, in
reverse chronological order from the date of the notice provided in present law, the former operators
of record to close and restore the oilfield site.
Proposed law provides for penalties and the recovery of site restoration costs to be assessed against
the operator who fails to close and restore the oilfield site.
Present law provides recovery of site restoration costs. Further provides that the secretary of
Department of Natural Resources is not authorized to recover restoration costs from parties that
formerly operated or held a working interest in an orphaned oilfield site unless restoration costs for
a particular orphaned oilfield site including support facilities exceed $250,000.
Proposed law changes the restoration costs limitation from $250,000 to $50,000.
Present law provides that if the oilfield site does not meet the provisions of R.S. 30:88(F) and
restoration costs exceed $250,000, recovery of costs will be from the parties in inverse chronological
order from the date on which the oilfield site has been declared orphaned, except that a party will
be exempt from liability for restoration of an orphaned oilfield site if the party meets certain
requirements.
Proposed law changes the restoration costs limitation from $250,000 to $50,000.
Effective August 1, 2015.
(Amends R.S. 30:88(A), (B), (C), (E), (F), (G), and (H), 91(B)(1), 93(A)(1), and the introductory
paragraph of (A)(3); adds R.S. 30:91(B)(5)) Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Natural Resources to the
original bill
1. Requires a site-specific trust account when an oilfield site is transferred between
operators.
2. Changes the procedure for declaring an oilfield site as orphaned.
3. Provides for penalties and the recovery of site restoration costs from certain
operators.